Mexico’s state-owned Pemex signs deal with Brazil’s Petrobras to collaborate on deepwater projects amid declining production and debt concerns.
Mexico’s Pemex and Brazil’s Petrobras signed a memorandum of understanding to jointly explore deepwater opportunities in the Gulf of Mexico. The agreement covers exploration, production, refining, natural gas, and petrochemicals, aiming to bolster Pemex’s struggling operations.
Pemex has faced declining oil production and mounting debt, while its refining business has posted chronic losses. Petrobras, a leader in deepwater drilling, could provide technical expertise and operational efficiency to help reverse Pemex’s fortunes.
The collaboration follows years of underinvestment in Pemex’s infrastructure and comes as Mexico seeks to stabilize its energy sector. No financial terms were disclosed in the announcement.