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Pemex to Accelerate Mixed Contracts With Private Companies to Attract Investment Image: Archivo EL UNIVERSAL
🇲🇽 Mexico /Economy & Trade

Pemex to Accelerate Mixed Contracts With Private Companies to Attract Investment

From El Universal · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Pemex Director General Juan Carlos Carpio Fragoso said the company would accelerate mixed contracts with private companies across its value chain.
  • The proposed areas include exploration, deepwater projects, extraction, refinery rehabilitation, petrochemicals, storage and logistics.
  • Pemex has signed 10 mixed crude-extraction contracts since the current administration began, while facing debt, supplier-payment, production and infrastructure challenges.

Pemex says it needs to move faster in bringing private companies into its operations, and it wants that cooperation to extend well beyond crude extraction. The state oil company plans to accelerate mixed contracts across much of its value chain, including exploration, refining and logistics.

Juan Carlos Carpio Fragoso, Pemex’s director general, said the company had reviewed its strategy following a recent change in administration. The conclusion, he said, was that the plan needed to speed up its relationship with the private sector. Mexican law created the mixed-contract model for exploration and extraction, and Pemex now wants to use the company’s own legal powers to expand cooperation further.

The areas under consideration include deepwater exploration, seismic work, data reprocessing and crude extraction. Pemex also wants private participation in technologies that could slow production declines and raise recovery rates. Other targets include maintenance and rehabilitation of the national refining system, petrochemical plant modernization, the recovery of auxiliary services, and the integration of industrial processes.

accelerate the plan, the relationship with the private sector

— Juan Carlos Carpio FragosoThe Pemex director general described the company’s response after reviewing its strategy under a new administration.

Logistics is also part of the plan. Pemex cited the rehabilitation and expansion of storage infrastructure and logistics systems as areas where outside investment could play a role. Since the current administration began changing energy regulations, including constitutional provisions, Pemex has signed 10 mixed contracts with private companies for crude extraction.

The push comes as the company deals with debt reduction, unpaid supplier obligations, stagnant crude production, high prices for oil and refined products, storage constraints and illegal pipeline taps. “The strategic plan needs to accelerate, and it will do so together, if permitted, with the private sector,” Carpio Fragoso said.

The strategic plan needs to accelerate, and it will do so together, if permitted, with the private sector.

— Juan Carlos Carpio FragosoCarpio Fragoso summarized Pemex’s intention to expand cooperation with private companies.
About this summary

Originally published by El Universal in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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