Mexico City, (EFE) .- The new Strategic Plan of Pemex provides a financial respite to the company in the short term, but structural changes are still required in its business model to achieve a sustainable solution and increase the production of crude oil, according to the chief economist of BBVA Mexico, Carlos Serrano.
Serrano pointed out that the recent issuance of precapitalized notes for 12,000 million dollars represents a positive first step, as it will allow Pemex to face its immediate debt maturities, both in 2025 and 2026.
However, the economist pointed out that the measures announced by the Government must be complemented with deeper transformations to reverse the drop in oil production and improve the financial position of the company in the long term.
“These measures that have been announced believe that they relieve Pemex’s maturity situation in the short term, but so that there is a structural solution, oil production should be increased and for that we would have to see structural changes in business model and that they are not yet announced,” he said in a press conference.
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Mixed and unconventional contracts with potential
Serrano stood out as positive two key elements of the Plan: the reintroduction of mixed contracts and the exploration of unconventional fields, especially for the extraction of natural gas, which is carried out with practices such as hydraulic fracturing or ‘fracking’.
In his opinion, allowing private investment in these areas could attract capital, raise production levels and, at the same time, generate additional income for the government through royalty schemes.
“These contracts, such as those assigned in previous rounds (oil companies), assign a very high percentage of royalties to the Mexican government (…) Then, this can not only help increase production, this can also contribute to relieve pressure on public finances. And the issue of unconventional ones believe that there is a very large potential,” he explained.
Regarding unconventional deposits – like those of Lutitas, which require techniques such as fracking or hydraulic fracturing – Serrano recalled that thanks to its use the United States became one of the world’s main oil producers in the world.
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“15 years ago there were doubts about the ecological impact of this, but today there is, fortunately, techniques that allow the extracted energy of these fields without significant deterioration in environmental and water issues,” he said.
In this sense, he also considered that today “there is no reason to think that Mexico does not have exactly the same resources as in New Mexico and Texas”, so he prompted to review the potential of this region for the production of natural gas.
“Borders are not a geological issue, borders are political issues and Mexico I think it has enormous potential,” he concluded.
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