Mexican President Andrés Manuel López Obrador’s campaign promise of a refinery for his home state of Tabasco is being delivered this week. The 340,000 b/d Olmeca refinery in Dos Bocas will be inaugurated on Friday, July 1, exactly four years after López Obrador won the presidency.


“With president López Obrador inaugurating his flagship Olmeca refinery, what we see is a move to keep reminding average Mexicans that self-sufficiency in fuels is a goal of the utmost importance and whose cost is a pill that the country must swallow,” Rice University’s Adrian Duhalt of the Baker Institute for Public Policy told NGI’s Mexico GPI

The refinery was delivered with a massive price. López Obrador said cost overruns could be in the range of 20-30% over the budgeted $8...