Mexico’s state-owned oil company, Pemex, is facing mounting pressure to reverse years of declining production, prompting the administration of President Claudia Sheinbaum Pardo to seek new partnerships with international energy firms. Discussions are underway with industry giants including Chevron, Exxon Mobil, and BP – alongside Mexican companies – to explore opportunities in offshore hydrocarbon extraction. The potential for notable investment and an estimated 200,000 barrels per day in new production comes as the government simultaneously navigates the results of its own, limited rollout of mixed-ownership contracts, raising questions about the future of Mexico’s energy sector and its reliance on foreign capital.
Mexico’s oil industry could be on the cusp of a significant shift, as major international energy companies, including Chevron, Exxon Mobil, and BP, are in discussions with the Mexican government to participate in hydrocarbon exploration and extraction projects, primarily in offshore fields. Mexican firms Diavaz, Opex, and Jaguar are also reportedly involved in the talks.
According to sources cited by EL CEO, proposals have already been presented to the Secretary of Energy, Luz Elena González Escobar, outlining developments that would require private capital. These projects could potentially add between 22,000 and 50,000 barrels per day (bpd) from each field.
Combined, the potential production from these fields could reach approximately 200,000 bpd, a volume comparable to the expected output from the Zama megaproject, which includes participation from businessman Carlos Slim. This potential increase in production comes as Mexico seeks to bolster its energy output and attract foreign investment.
The primary goal of these proposed projects, sources say, is to halt the decline in Mexico’s oil and gas production over the next decade – a major challenge facing Petróleos Mexicanos (Pemex) and the national energy sector. The potential for increased investment and production could be a key factor in stabilizing Mexico’s energy future.
Which Oil Companies Are Interested in New Mexican Fields?
Table of Contents
- Which Oil Companies Are Interested in New Mexican Fields?
- Potential Oil Production from These Projects
- Why is Mexico Seeking to Attract Private Oil Companies Again?
- Under What Type of Contracts Could These Companies Operate?
- What’s Happening with the Government-Driven Mixed Contracts?
- Why Haven’t These Contracts Been Attractive to Major Oil Companies?
- What Would the Entry of Chevron, Exxon, and BP Mean for Mexico?
- What’s Confirmed and What’s Not
The discussions involve three of the world’s largest oil companies:
In addition to these global players, several Mexican companies with a presence in the energy sector are also participating:
- Diavaz
- Opex
- Jaguar Exploración y Producción
Sources indicate that the companies are primarily interested in fields located in shallow waters, where technical development is more feasible and production timelines are shorter compared to deepwater projects.
Potential Oil Production from These Projects
The proposals presented to the Secretariat of Energy outline varying potential production levels for each field. However, estimates range as follows:
- Each field could produce between 22,000 and 50,000 barrels per day.
- Combined production could approach 200,000 barrels per day.
This projected volume is significant, as it is comparable to the anticipated output from the Zama field, one of the largest shallow-water oil discoveries in the Gulf of Mexico, which is expected to produce approximately 180,000 barrels per day once operational.
Why is Mexico Seeking to Attract Private Oil Companies Again?
According to sector sources, the main purpose of these projects is to reverse the decline in hydrocarbon production that Mexico has experienced in recent years.
Pemex faces significant financial and operational challenges, and the federal government has indicated that it needs new investment to sustain oil and gas production in the medium and long term.
These potential agreements are occurring within the framework of the energy reform that came into effect last year, which opened the door to greater private sector participation under schemes where the state maintains a central role.
Under What Type of Contracts Could These Companies Operate?
As of now, the specific operating model for these companies, should they receive approval from Sener and Pemex, has not been publicly defined.
Sources indicate that participation would be subject to the contract types outlined in the current energy reform, which seeks to combine private investment with state control.
This point is key, as the design of the contracts has been a major factor influencing the interest – or lack thereof – of major oil companies in operating in Mexico.
What’s Happening with the Government-Driven Mixed Contracts?
The potential arrival of Chevron, Exxon, and BP contrasts with the initial results of the mixed contracts promoted by the administration of President Claudia Sheinbaum Pardo.
These contracts are part of the government’s strategy for the Secretariat of Finance and Public Credit (SHCP) to stop financially supporting Pemex starting in 2027, allowing the state-owned productive company to achieve greater self-sufficiency.
However, the first round of awards was limited:
- Only five contracts were awarded.
- The winners were Consorcio Petrolero 5M del Golfo, Geolis, Petrolera Miahuapan, and CESIGSA.
- Their combined contribution is estimated at around 40,000 barrels per day.
This figure represents just 2.2% of the national goal of 1.8 million barrels per day set by the federal government.
Why Haven’t These Contracts Been Attractive to Major Oil Companies?
Experts cited by EL CEO point to the level of risk associated with the mixed contracts as a key reason for the limited interest from international players.
Under these schemes, private companies would not have control of the project, limiting their decision-making power regarding investment, operation, and capital recovery. Analysts say this reduces the financial attractiveness compared to other countries with more flexible contractual conditions.
What Would the Entry of Chevron, Exxon, and BP Mean for Mexico?
If negotiations progress and projects are finalized, Mexico could:
- Receive fresh capital for exploration and extraction.
- Increase crude oil production in shallow waters.
- Alleviate some of the pressure on Pemex.
- Gain time to address the structural challenges facing its oil industry.
However, any agreement will depend on the final design of the contracts, the technical evaluation of the fields, and the formal approval of Sener and Pemex.
What’s Confirmed and What’s Not
Information confirmed by sector sources and by EL CEO:
- Discussions are underway with international and Mexican oil companies.
- Proposals have already been presented to the Secretariat of Energy.
- The goal is to halt the decline in production over the next 10 years.
Information that is not yet public or definitive:
- The exact participation model.
- The specific fields that would be developed.
- The final conditions of the contracts.
Mexico is at a critical juncture for its energy policy. The limited response to the initial mixed contracts and discussions with global oil companies reflect a common underlying problem: the urgency of sustaining production without Pemex bearing the full financial and operational cost.
The next decisions by Sener and the federal government will be decisive in determining whether these negotiations turn into concrete projects or remain merely attempts in an increasingly competitive energy environment.
