Reforms Grant Pemex Greater Flexibility for Partnerships
Adriana Barrera, Reuters
MEXICO CITY
EnergiesNet.com 02 06 2025
Mexican state-owned oil firm Pemex is set to have a wider berth to operate jointly with private companies under a bill sent to Congress on Wednesday, loosening restrictions implemented by the previous administration.
According to the bill, which is expected to pass by a wide margin, Pemex will then be able to enter exploration and extraction agreements with private firms, after such contracts had been canceled by former President Andres Manuel Lopez Obrador.
Reuters reported in August, before Lopez Obrador’s successor Claudia Sheinbaum took office in October, that her government would look to restart joint ventures for Pemex in a bid to boost its reserves and navigate mounting debt.
The text sent to Congress on Wednesday lays out the so-called “secondary laws,” or the guidelines, to roll out an energy reform passed last year.
Pemex may request the energy ministry convert some existing service contracts, such as one it has with billionaire Carlos Slim’s Grupo Carso (GCARSOA1.MX), opens new tab in the Lakach deepwater natural gas field, to joint partnerships or exploration and extraction contracts, according to the bill.
Reuters reported last week that Pemex and Carso were discussing major changes to the project to make it profitable. The project had been abandoned by the state company twice previously due to high costs.
Under the reform, Pemex will not need regulatory approval or a bidding process to convert existing contracts, though it will face such hurdles for new exploration and extraction deals.
The state firm will maintain exclusive rights to the exploration area, and does not have to pour its own funds into the joint contracts, according to the bill.
SUPPORT FOR PEMEX
Pemex is one of the most heavily indebted state oil firms in the world, and lacks the cash to invest in projects that would allow it to meet crude production goals promised by Sheinbaum in her term.
The proposal will allow the energy ministry to launch auctions for exploration and extraction contracts, a once-frequent practice suspended by Lopez Obrador.
Pemex will be able to bid for contracts with “alliances or associations,” according to the bill, and the energy ministry can determine Pemex’s stake in the project.
Pemex’s ability to choose its own partners will also be new. They had previously been assigned by oil regulator CNH, whose duties are now being absorbed by the energy ministry.
Reporting by Adriana Barrera; Writing by Kylie Madry; Editing by Jamie Freed
reuters.com 02 05 2025
