Pemex Seeks New Models for Private Investment

The CEO of Petróleos Mexicanos (PEMEX), Juan Carlos Carpio Fragoso, has stated that the state-owned oil company is reviewing new partnership models with third parties, as well as the recognition of joint venture contracts, through which it seeks to attract private capital—not only in hydrocarbon exports and production but also in other areas of the value chain.

As part of the forum “Investment and Infrastructure as Catalysts for Growth: Opportunities Under the Plan México,” organized by the Business Coordinating Council (CCE), the executive clarified that the current Hydrocarbons Law allows for these public-private partnership models, under which 10 contracts have already been awarded; however, the Public Enterprise Law itself provides for greater flexibility in implementing such projects.

According to the executive, the only condition the company must meet is not to compromise the public interest in the projects.

That is why Carpio Fragoso has listed the activities he plans to pursue to attract private investment, such as: deepwater hydrocarbon exploration, seismic surveying and data reprocessing, and, in the extraction sector, the search for new technologies to mitigate production decline and increase the recovery factor.

In addition, plans will be developed for participation in the maintenance and rehabilitation of the National Refining System; in the petrochemical sector, for the rehabilitation and maintenance of plants; and in logistics, storage, and various other processes, primarily.

Juan Carlos Carpio explained that the mechanism for implementing collaboration with the private sector would be based on working groups with business representatives; these groups would be convened to review and analyze each value chain and even the contracts, tailoring them to each project. In addition, the working groups are intended to facilitate discussion of various topics, such as the company’s outstanding debts to its suppliers.