Financing Mexico’s oil opening
Reserve-based lending could help bring cash into the country's oil patch—if regulators can get the rules right
Mexico's energy reforms have put the country on the map for international oil companies. For the first time in more than 70 years, private firms can take part in its upstream oil and business alongside state-run Pemex. A big question for these private companies, especially smaller exploration and production players, is how they are going to finance their new Mexican business. To open up the country's upstream, new types of contracts are being offered which, while used elsewhere, haven't been implemented in Mexico before. Specifically, Mexico is now awarding private investors production-sharing contracts (PSCs), which allow a percentage of the output as payment, as well as licence agreements
Also in this section
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
21 January 2025
The new president must put his cards on the table and tell the American people, and the world, if the US is formally abandoning the energy transition
