Pemex shoulders upstream burden

Suspension of private investment opportunities ramps up pressure on the Mexican state firm

Before last year's election, investors raised concerns that Andrés Manuel López Obrador's win would trigger the scale-back of Mexico's energy reforms. Less than five months later, those fears have been realised: López Obrador has suspended oil auctions for the next three years and placed a moratorium on farm-outs until production from existing projects begins flowing. Mexican authorities now face the task of propping up ailing state oil company Pemex without the prospect of any joint-venture capital or future private participation. In February, the government offered $1.3bn in capital injection and $0.8bn in tax relief to help bailout the company — a tiny contribution compared to the total $