Introduction to Pemex and its Strategic Plan
Petróleos Mexicanos (Pemex), Mexico’s state-owned petroleum company, aims to boost national liquid hydrocarbon production through mixed contracts with private partners. According to Pemex’s Strategic Plan 2025-2035, these collaborations are expected to account for up to 25% of the total production by 2033, reaching 450,000 barrels per day.
Current and Future Production Levels
As of 2027, Pemex’s national extraction is projected to be 1.8 million barrels of liquid hydrocarbons daily. This includes production from Pemex’s own operations, mixed contracts (awarded between 2015 and 2017), and third-party companies that won previous licitation rounds under the previous administration.
Mixed Contracts’ Significance
Pemex’s strategic plan highlights that the 21 mixed development schemes could collectively contribute up to 450,000 barrels of oil per day at their peak. This participation is crucial for stabilizing base production and compensating for the decline of mature fields while ensuring energy supply commitments for the country.
Challenges and Risks in Mixed Contracts
Experts warn that there is a risk of inviting companies without adequate capabilities, such as experience, resources, or financial support, into the new mixed contracts. Víctor Hugo Juárez Cuevas, CEO of De Edge Innovation, explains that the new strategic plan for Pemex 2025-2035 specifies that new mixed contract participants will be legally established companies (sociedades mercantiles) selected by the Secretaría de Energía based on Pemex’s needs.
Participant Requirements
These participants must be legally established companies according to Mexican law, adhering only to the Acquisition, Leasing, and Services Law for the Public Sector. This implies that participation in these allocations will likely be through direct invitation or appointment.
Implications for the Business Landscape
This change presents both challenges and opportunities for existing companies and new entrants in the sector. Ensuring that new participants possess proven experience or resources is vital for successful, low-risk project execution. Otherwise, companies without sufficient capabilities might engage in high-risk activities that could lead to financial, human, or environmental consequences.
Key Questions and Answers
- What are mixed contracts? Mixed contracts are collaborative agreements between Pemex and private companies aimed at developing oil and gas projects in Mexico.
- Why are mixed contracts important for Pemex? These collaborations aim to stabilize production, compensate for maturing field declines, and ensure energy supply commitments.
- Who can participate in mixed contracts? Only legally established companies (sociedades mercantiles) meeting specific criteria set by the Secretaría de Energía can participate.
- What are the risks associated with mixed contracts? There is a risk of involving companies without adequate capabilities, leading to high-risk projects with potential financial, human, or environmental consequences.
