Mexico’s Pemex insists Mexichem VCM joint venture still on table

27 November 2012 22:43  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Petroleos Mexicanos (Pemex) said on Tuesday that a joint venture with Mexichem to produce vinyl chloride monomer (VCM) is still a possibility, despite the Mexican chemical conglomerate announcing that it was scrapping the deal due to long delays.

“The project has not been cancelled or rejected,” a spokesman for the state-run oil company said.

“It’s subject to a vote by the Pemex board, which will take place in the next administration,” he said.

The proposed joint venture, first announced in June 2011, would increase the VCM capacity at Pemex’s Pajaritos plant from 200,000 tonnes/year to 450,000 tonnes/year.

Mexichem announced last week that it was scrapping the joint venture amid Pemex’s continual wavering in signing off the deal and would concentrate instead on overseas investment opportunities.

The company said in October that it believed Pemex’s refusal to sign was political.

Local media have reported that Mexico’s oil workers union was stalling approval of the joint venture.

Mexichem did not immediately respond to a request for comments.

By: Simon West

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