Mexico will refinance Petroleos Mexicanos’s debt since it’s cheaper than if the state oil giant goes to the market itself, according to the company’s Chief Executive Officer Octavio Romero.

Pemex’s debt has a higher cost than sovereign debt, with the company’s debt currently yielding over 11% compared to 5% for sovereign bonds with a similar maturity, said Romero during a press conference in Mexico City. Since the debt of Pemex belongs to the country, President Andres Manuel Lopez Obrador has decided that it will be cheaper for the Finance Ministry to refinance its debt, Romero said.

“Pemex’s debt is the country’s debt, they go together. It doesn’t make any sense that Pemex would give away money to big financial companies, to big banks,” he said. “The president of the republic has determined that now the bond issuances or refinancings be done by the Finance Ministry according to the financial costs of the sovereign, and this will save the country a lot of money.”

The Finance Ministry did not immediately reply to a request for comment.

Read More: Pemex Bonds Tumble Amid Downgrade Warnings and Accidents

Pemex’s bonds have fallen in the wake of warnings that the company may face more credit downgrades amid repeated accidents that are expected to make it harder for the driller to access financing. Its bonds due in 2032 are hovering near lows last seen in October.

The company is the world’s most indebted oil driller, with $107.4 billion in financial debt at the end of March, and its production has declined for the better part of two decades. Fitch Ratings cut the company deeper into junk territory on July 14, while Moody’s Investors Service put Pemex on a negative outlook for a potential downgrade last week, citing increased credit risks.

Read More: Pemex Says Size of Gulf of Mexico Spill Has Been Overstated

Among the spate of recent accidents was a deadly blast earlier this month on the Nohoch-Alfa gas platform that left two people dead. Romero said during the press conference that oil production had nearly recovered. While it initially dropped by as much as 700,000 barrels in one day, and then fell to 100,000 barrels a day, the loss has been reduced to 8,000 barrels, he added.

--With assistance from Maya Averbuch.