New Player in the Industry

Chevron and Repsol abandon exploration blocks. Meanwhile, Russian oil giant, Lukoil, has opened operations in Mexico seeking to expand to new markets as it faces challenges due to sanctions imposed on Russian oil.

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Russian Lukoil to Open Operations in Mexico

Lukoil, a major Russian oil company, is exploring business opportunities in Mexico as it seeks to expand its global presence amid sanctions on Russian oil exports. The company has hired Yuri Carreño, a former PEMEX trader, to ease its entry to the Mexican market.

Chevron Abandons Deepwater Block

Chevron and Repsol have received approval from CNH to abandon deepwater and shallow-water blocks in Mexico, respectively. Chevron cited unfavorable prospects for its deepwater block off Tabasco's coast, previously partnered with PEMEX and Inpex. CNH has urged SENER to consider restarting oil tenders, emphasizing untapped reserves in 23% of Mexico's territory.

Moody's Warns of Fiscal Constraints Linked to PEMEX

Moody's warns that consistent support for PEMEX, pensions and flagship projects is constraining Mexico's fiscal flexibility. Rising interest burden, both as a percentage of GDP and government revenues, is increasingly straining the sovereign's fiscal strength compared to its rating peers. 

Mexico Will Continue to Export Oil in 2023

Mexico will continue its crude oil exports in 2024, but PEMEX plans to send 587Mb/d, while the Ministry of Finance expects 994Mb/d. This comes amid President AMLO's promise to end crude oil exports at the end of his term.

Oil Prices Rise to 10-Month High

Saudi Arabia and Russia have extended oil production and export cuts until the end of 2023 instead of October. Oil prices reached highs not seen since November 2022, with the Mexican blend increasing by 4.86% in the week. US oil demand remains strong, supporting crude oil prices.