PEMEX’s New Direction: The Week in Oil and Gas

PEMEX’s new director announcement signals a shift in the NOC’s administration, steering toward major ESG compliance and better commercial relations.

Ready for more? Here is the weekly roundup!

New Direction for PEMEX

The appointment of Víctor Rodríguez as the next Director of PEMEX signals a potential shift in the company’s relationship with contractors, as well as in its operational strategies. Víctor Rodríguez, an academic from UNAM with extensive experience in energy economics, is expected to bring a more transparent and efficient approach to contracting and partnerships, according to Fluvio Ruiz, a former independent advisor to PEMEX and advisor at the Senate.

US Investors Interested in Helping PEMEX Diversify

US investors could play a crucial role in helping PEMEX to diversify its assets, particularly in the renewable energy sector, according to Laura Sima, Attaché, US Department of Energy, and Director, US Embassy’s energy office in Mexico.

Oil and Gas Highlights From State of the Union Address

During his sixth State of the Union Address, Andrés Manuel López Obrador revisited some of the actions taken by his government and PEMEX regarding the oil and gas sector. The president said Carso and Mota-Engil, in partnership with PEMEX, will resume natural gas extraction projects off the coast of Veracruz at the Lakach field. Additionally, new fertilizer plants will be constructed in Escolín and Poza Rica, aiming to revive infrastructure that had been abandoned since the neoliberal period.

Mexico Wins ICSID Arbitration in Oro Negro Case

Mexico secured a legal victory in an international arbitration case involving oil services company Oro Negro. On Aug. 19, 2024, a tribunal under the International Centre for Settlement of Investment Disputes (ICSID) ruled unanimously in favor of Mexico, dismissing claims brought by a group of investors seeking US$270 million in damages.

Dos Bocas Processes 6.5% of PEMEX Crude; Fuel Oil Sales Increase

The Olmeca refinery, located in Dos Bocas, Tabasco, processed 6.5% of the crude oil that entered PEMEX’s refineries in July, marking its first full month of operations. The new refinery processed 65.406Mb/d of crude oil, operating at 19% of its capacity. This contributed to a total of 1.013MMb/d processed across the SNR, bringing the overall utilization rate to 51% of the installed capacity, which now stands at 1.98MMb/d due to the addition of the Olmeca refinery’s 340Mb/d capacity.

PEMEX’s internal fuel oil sales rose by 21.398Mb/d in July, marking a 23.5% increase compared to the previous month. By the seventh month of the year, internal sales had reached 112.376Mb/d, according to reports from the state-owned company released this week.

Mexico's Budget Deficit Increases Due to Oil Revenues, Subsidies

Mexico’s budget deficit increased, driven by lower-than-expected oil revenues and a rise in spending on subsidies and financial investments, according to the Center for Economic and Budgetary Research (CIEP). The center revealed that the budget deficit reached MX$744.2 billion, marking an increase of MX$321.9 billion compared to the same period last year.

Talos Energy CEO Steps Down

Talos Energy announced that CEO Tim Duncan, one of the company's founders, stepped down from his position on Aug. 29 after over 12 years at the helm. Duncan's departure marks a significant leadership change at the US oil and gas firm, where he played a crucial role in pioneering exploration efforts.