The Mexican government has announced contracts with private companies to increase oil and gas production. The companies involved are Consorcio Petrolero 5M del Golfo, Geolis, CESIGSA, Petrolera Miahuapan, and Sini Caparroso. However, the industry is concerned that fewer contracts have been finalized than initially announced, and the results are expected to be far below the government's expectations to address operational and financial problems. The central role of the state oil company, Pemex, complicates the mixed projects promoted by the government. According to sector specialist Gonzalo Monroy, at their peak, these contracts would yield less than 40,000 barrels per day. Executives in the sector report that access to data rooms was denied, and variables imposed by the oil company, such as the gas price, were questioned. In September, Rodriguez told legislators that contracts had been modified after listening to private companies, but months later, another key problem persists: the continued centrality of the state oil company and the low profitability of the business for private entities. For perspective, the Secretary of Energy, Luz Elena González, proposed adding 720,000 barrels per day mid-year. Monroy argues that due to the "failure" of the Sener and Pemex call to attract new private partners, the decline in oil production will not be addressed. According to Monroy, the government expected nearly $8 billion in bond commitments but only secured $50 million. For months, the oil company has faced severe credibility issues in attracting the most prestigious and financially capable oil companies. This week, Claudia Sheinbaum stated at her morning conference that Pemex will end the year in good shape; however, the reality of the mixed contracts to be announced this Friday dismantles this narrative, as they failed to meet even half of the goals promised mid-year. As anticipated by LPO, Petróleos Mexicanos (Pemex) did not manage to finalize the 11 mixed contracts promised in the first Government Report: by year's end, only five projects were signed with smaller companies. For the CEO of Pemex, the situation is delicate: Victor Rodriguez believed the announcement would strengthen him, but after seeing the meager results, talks of his imminent departure continue in the oil sector. This editorial explained that changing the director at Pemex is a long-discussed topic at the National Palace but has not been finalized to prevent Palenque from advancing on the company. According to information from Reuters, the government will officially announce the new contracts with private investors this Friday. One factor is the non-payment to suppliers. Victor Rodriguez, director of Pemex. Other elements that worked against the projects were the contracts themselves and the lack of transparency. "It is not useful to palliate the decline of Ku-Maloob-Zaa," he adds, referring to one of the state oil company's main fields. Putting it in financial terms, the goals also fall short.
