EM LATAM CREDIT: Pemex Output Hits New Lows, Gov Sets Rule for Private Operators

From MNI Commodities Analyst:

{MX}{7i} Pemex Output Hits New Lows As Gov Sets Rule for Private Operators
As Mexico’s government prepares to attract private energy investors, Pemex output hits new lows, BNamericas said.
• Pemex’s Dec production of liquids fell to its lowest level of the year, down 12% on an annual basis to 1.62m b/d.
• Excluding condensates, Dec crude production hit a multi-decade low of 1.35m b/d.
• Pemex average liquids production in 2024 fell 6% to 1.76m b/d
• Analysts expect that debt-ridden Pemex will need to work with private operators if it is to have a chance of raising output.
• Sheinbaum's predecessor AMLO, who was in office from 2018 to 2024, cancelled bid rounds that were designed to encourage international oil companies to invest in Mexico.
• López Obrador also suspended farmouts that give private investors the right to operate fields alongside Pemex and take their share of production.
• Sheinbaum may need to restart farmouts to bring more capital to the Mexican upstream, analysts say.
• However, recent sweeping reforms to the sector are expected to prioritise state control and reduce the role played by private companies, OPIS said.
PEMEX 7.69% 2050, $74.41, -.38