CERAWeek '18: Pemex CEO stresses the importance of partnerships in Mexico

HOUSTON -- On Tuesday, during CERAWeek, IHS Markit’s senior V.P., Carlos Pascual, sat down with Pemex CEO Carlos Treviño and Petronas President & Group CEO Wan Zulkiflee, to discuss the increasingly critical future of upstream partnerships. Treviño said that “the new name of the game, for Pemex, is ‘partnerships.’”

After surpassing its production goal last year (reaching 1.948 MMbpd), Pemex is continuing to take advantage of energy reform in Mexico. Through an aggressive farm-out strategy, the company is seeking to attract more foreign investment and reverse the decline in production at its aging Cantarell field, situated approximately 50 mi offshore in the Bay of Campeche.

Mexico’s latest “cluster” of assets to go up for bid is part of a streamlined effort to find partners willing to invest in the country’s energy sector, ahead of the approaching presidential election. Treviño said that bidding for 29 onshore oil blocks is set to begin in early April, with results to be announced in late September or early October.

According to Zulkiflee, Mexico is an increasingly attractive investment opportunity for companies like Petronas, and he said that he expects Petronas will be the third-largest acreage-holder in Mexico very soon.

In January, Mexico awarded 19 deepwater blocks, reportedly bringing in billions of dollars of investment. Pemex won four of the blocks. The country hopes to continue to attract the same investment for its heavy oil areas during this month’s offering of 35 shallow-water areas.