Pemex treading a tightrope
Mexican producer must weigh ambitious upstream strategy with rapidly rising debt
Striking the right balance in Mexico’s upstream between expectation and reality has been a challenge for President Andres Lopez Obrador. His efforts to halt years of declining crude production started to bear fruit in mid-2019, only to be knocked off-course by the pandemic. But overly ambitious targets have often been missed, and the financial burden on state oil firm Pemex is starting to mount. The Mexican NOC ended last year with a massive MXN481bn ($22.6bn) net income loss, driven mainly by crude prices plummeting by 36pc. Most notably, the NOC increased its hefty debt pile by 14pc, reaching $113.2bn at year-end. By comparison, Brazilian peer Petrobras has paid down $35bn since its debt t
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
