Slim Calls for PEMEX Rescue: The Week in Oil and Gas

Carlos Slim highlights the ongoing financial strain, falling production, and significant payment delays to suppliers that are driving investors away from the NOC. In other news, Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on July 5, 2025, to assess global oil market conditions and agreed on a production increase for August.

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Carlos Slim Urges Private Sector Support to Rescue PEMEX

Mexican billionaire Carlos Slim urged greater private sector participation to help rescue state-owned oil company PEMEX, which continues to face financial strain, falling production, and delayed payments to suppliers. Speaking at a Mexican Union of Engineering Associations (UMAI) forum in commemoration of the day of the engineer, Slim warned that the company’s inability to pay contractors is driving investors away. “We need to find a solution to strengthen PEMEX’s position,” he said.

Mexico Leads in Refining Gains, but Oil Reserves, Rigs Decline

According to the Organization of the Oil Exporting Countries (OPEC), Mexico’s oil industry saw a mixed performance between 2023 and 2024. The country reported declines in proven oil reserves, active oil rigs, and crude oil production, but led the world in one key area: the largest increase in refining capacity, thanks to the start-up of the Dos Bocas refinery.

Downtime Leaves Dos Bocas Refinery Running Below Capacity

Mexico’s flagship refinery in Dos Bocas, Tabasco, is currently operating below its designed capacity after a months-long halt in operations, President Claudia Sheinbaum confirmed this week. According to Sheinbaum, the Olmeca Refinery experienced a temporary shutdown between December 2023 and February 2024 after crude oil contaminated with saline water entered the facility, requiring an extensive and time-consuming decontamination process.

OPEC+ Nations Increase Oil Production

Eight OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on July 5, 2025, to assess global oil market conditions. The group announced a production adjustment of 548MB/d for August 2025. This adjustment is equivalent to four monthly increments.

PEMEX Advances Escolín Fertilizer Plant With SEMARNAT Filing

PEMEX has officially registered the Escolín Fertilizer Plant project with Mexico’s Ministry of Environment and Natural Resources (SEMARNAT) through the submission of its environmental impact assessment (MIA), published in the Ecological Gazette. The move marks the formal beginning of a project backed by an investment of approximately US$1.55 million.

Mexico’s Oil Output Declines Amid Rig Decommissioning Trend

Mexico’s oil production is still on a downward trajectory, with the country producing just 1.615MMb/d of liquid hydrocarbons in 1Q25. This marks an 11% drop compared to the 1.819MMb/d recorded during the same period last year. Industry experts point to the systematic decommissioning of oil rigs across the country as one of the key factors driving this persistent decline.