Mixed Contracts Spark Interest: The Week in Oil and Gas

Mixed contracts have sparked the interest of private players with at least 14 companies interested in partnering with the NOC. In other news, Mexico's federal government is working to refinance PEMEX debt.

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Mixed Development Contracts to Boost Oil, Gas Output

PEMEX plans to increase its crude oil production by 69.4Mb/d in 2025 through 11 mixed development contracts with private companies. These contracts, which also include plans for an additional 609.5MMcf/d of natural gas, represent a key shift in PEMEX’s upstream strategy as it seeks to bring in private capital and accelerate output from assigned fields without additional budget allocations for the year.

At least 14 companies have expressed interest in partnering with PEMEX to develop six of the 11 mixed contracts available this year for the exploration and extraction of hydrocarbons alongside the NOC.

Mexico Eyes Refinancing Plan for PEMEX's US$120 Billion Debt

Mexico's federal government is working to refinance PEMEX debt, which totals more than US$120 billion. The strategy involves leveraging credit lines from the World Bank and international financial institutions, including Deutsche Bank. These funds are primarily intended to pay PEMEX's suppliers.

Petrochemical Sector Eyes Curricular Overhaul for Plan México

Authorities, experts, and industry leaders recently convened at the Mexican Oil Institute (IMP) for the First Annual Curricular Update Meeting for the Chemical and Petrochemical Sector. Organized in coordination with the Ministry of Public Education (SEP), the Ministry of Labor and Social Welfare (STPS), the Ministry of Science, and ANUIES, the event focused on aligning educational curricula with the evolving needs of these vital industries in Mexico.

Oil Mergers Could Intensify Pressure on Smaller Players in Mexico

A wave of mergers and acquisitions (M&A) in the oil and gas sector has the potential of intensifying pressure on smaller players, a trend particularly challenging in Mexico where contractors face fierce competition, while dealing with significant payment delays from PEMEX.

COPARMEX Warns PEMEX Debt Threatens Business Stability

Mexico’s Employers Confederation of Mexico (COPARMEX) has raised concerns about the growing debt that PEMEX has with its suppliers, warning that the situation poses a risk to both business and social stability across Mexico.

OPEC+ Accelerates Cut Unwind but Market Remains Tight

OPEC+ has continued its accelerated pace of unwinding production cuts, with eight member states agreeing to a production adjustment of 548Mb/d for August. This increase, exceeding market expectations of 411Mb/d, signals the group's response to a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories," according to UBS.

Sheinbaum Meets With Baker Hughes

President Claudia Sheinbaum Pardo recently held a meeting with executives from Baker Hughes, a key global energy technology company, signaling continued engagement with major international players in Mexico's oil and gas sector.