Mexico - 05

Mexico: Pemex’s High Profits Tarnished by Corruption Allegations

On 27 July Pemex submitted its third consecutive quarterly report showing net profits. In the first half of 2017 the company made $6.78bn in profits. This was enormous turnaround from 14 years of losses, including the $8.15bn in losses that Pemex recorded during the first half of 2016. While these new figures are certainly positive,

Mexico - 01

Mexico: Zama-1 Raises Expectations and Political Stakes: Implications for Round 2.4

Zama-1, the first well explored with private capital in the Gulf of Mexico, has exceeded all expectations. In the medium term, Zama-1 will provide Mexico with profits fluctuating between 68.99% and 80%. According to SENER, Zama-1 will ultimately provide about $36bn to the national treasury. Meanwhile, there is great optimism among the consortium operating Zama-1.

Mexico - 02

Mexico: Pemex Clears Hurdles as Energy Reforms Gain Further Support

Pemex is attempting to shake off past corruption allegations and boost its investment appeal. At the Oil and Gas Innovation Forum 2017 (organized by Siemens, Bloomberg and El Financiero) on 6 July in Mexico City, CEO Jose Antonio Gonzalez Anaya emphasized that Pemex had been a victim of Odebrecht’s. He also reiterated that a new

Mexico - 04

Mexico: Optimism for Round 2.2, but Challenges on the Ground Loom

The Mexican government is very optimistic about Round 2.2, which will be held on 12 July, following the splendid results for offshore blocks in Round 2.1 (please see our 23 June Latest Analysis). On 5 July the National Hydrocarbons Commission (CNH) announced that nine companies qualified for the 10 blocks on tender. However, these onshore

Mexico - 07

Mexico: Pemex Pressured Over Layoffs: Political Implications

On 26 June Senator Dolores Padierna, of the leftist Democratic Revolutionary Party (PRD), called for Pemex CEO Jose Antonio Gonzalez Anaya to appear before the Senate and explain why 3,000 of the company’s employees were recently laid off. She once again castigated Mexico’s energy reforms and accused them of being responsible for the layoffs. Dismissing

Mexico - 06

Mexico: Round 2.1 Yields “Splendid Results”

Despite uncertainty over energy prices and domestic politics, Round 2.1 was quite successful, with contracts awarded for 10 out of 15 shallow-water blocks. Indeed, Secretary of Energy Pedro Joaquin Coldwell said that the first tender yielded “splendid results.” He estimated that the contracts will entail investments of $8.1bn throughout their 35-year duration, creating 82,000 direct

Mexico - 05

Mexico: Pena Nieto Prepares for the Endgame

Pena Nieto is facing growing accusations of corruption and political incompetence, not only from the opposition but also from PRI members outside of the administration. As a result, although he has more than one year before leaving Los Pinos, Pena Nieto is already preparing for the endgame. His three main priorities are determining the PRI’s

Mexico - 01

Mexico: State Elections Leave Political Parties Scrambling

Elections in the states of Mexico, Coahuila, Nayarit and Veracruz on 4 June have raised many pressing questions in the Mexican political sphere. Voting in each of these states has its own local implications, but at the national level their effects are crucial, leading parties to revise strategies, make internal rearrangements and consider external alliances.

Mexico - 02

Mexico: PAN and PRD May Form Opposition Front for 2018 Elections

On 4 June the State of Mexico will elect a new governor. With a population of 17mn, including more than 11mn voters, the state is the most coveted prize for Mexico’s political parties, particularly as the launch pad for the 2018 presidential elections. As a result, in the state’s gubernatorial campaigns, candidates often exchange corruption