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
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields