November 29, 2017 / 6:39 AM / in a year

Mexichem says Pemex tie-up at blast site depends on insurance

MEXICO CITY (Reuters) - Mexican chemicals company Mexichem said on Tuesday its future association with state oil firm Petroleos Mexicanos (Pemex) in a petrochemical plant on the Gulf Coast will depend on insurers’ assessment of a major explosion that occurred last year.

The blast in April 2016 at the chlorinate 3 plant of Petroquimica Mexicana de Vinilo (PMV) - in which Mexichem has a 56 percent stake and Pemex holds 44 percent - killed 32 people near the port of Coatzacoalcos, putting the plant out of action.

Rodrigo Guzman, chief financial officer of Mexichem, told a news conference the company needed to know how much money it would get from the assessment before taking a decision regarding the PMV plant.

That assessment could be delivered as soon as December, Guzman added, though the company’s decision would take longer.

Among the options were to rebuild the chemical complex, construct a brand new plant, or even end the tie-up, Guzman said.

Pemex had no comment on Guzman’s announcement.

Reporting by Sheky Espejo; Editing by Sherry Jacob-Phillips

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