The oil rounds were positioning themselves as one of the main alternatives to recover the production and reserve metrics in Mexico. However, the National Hydrocarbons Commission (CNH) made an unfavorable decision for the country on this issue. In addition, the entity ruled on the Pemex farm-outs tenders.
Mexico’s production does not seem to improve; the new government will have to decide whether Pemex should reactivate currently closed wells, of if two consortiums should help it develop the project.
Mexico opened the doors of its energy sector recently thanks to Energy Reform and one of the main goals was to increase its competitiveness. The Fraser Institute of Canada made an energy ranking worldwide, where Mexico improved positions.
Andrés Manuel López Obrador (AMLO) wants to reactivate Pemex’s operational and financial metrics quickly. He announced an increase in Pemex budget for next year and Octavio Pastrana, Independent Advisor to the NOC spoke about this decision and its benefits.
For Fluvio Ruiz, Pemex’s corporate advisor, although the new government will not inherit a completely bankrupt NOC, it will still need to work on important changes to improve its financial stability.
Tabasco’s governor, Arturo Nuñez, said that the state is meant to be the “epicenter of Mexico’s oil recovery.”