After the win by Brazilian President Luiz Inácio Lula da Silva in the elections, Mexico's Pemex and Brazil's Petrobras plan to work together on the exploration and production of oil, Mexico's President Claudia Sheinbaum stated on Monday.
According to Brazil's electoral court, Lula was elected with 51.8 percent of the votes against the 48.2 percent achieved by Flávio Bolsonaro, a Senator. Lula will return for his fourth term of office on January 5, 2027.
Sheinbaum congratulated Lula and Brazil and stated that Mexico would reactivate the country's joint ventures, especially the Pemex and Petrobras joint venture.
"All of the joint venture projects on various topics will be resumed, including the partnership between Pemex and Petrobras," said Sheinbaum at her daily news conference in Mexico City.
Both companies previously entered into a Memorandum of Understanding on June 23 in Rio de Janeiro to study potential projects in the Mexican part of the Gulf of Mexico.
Areas that the contract will touch upon include development of both new deep and ultra-deep offshore fields as well as old fields. There will also be cooperation between the two on technologies that help improve the efficiency of using energy resources as well as development of low-carbon fuel technologies.
Petrobras and Mexico are looking to combine their resources and explore deepwater opportunities, in hopes that Petrobras' expertise in deepwater exploration and development will enable Mexico to better exploit the oil potential of the Gulf of Mexico. Sheinbaum has publicly commented that the deal was to better utilize Petrobras’ expertise and to work with the Brazilian state company. Petrobras also has expertise in both deep and shallow waters.
Pemex has significant financial and operational problems. As production was halved, with oil output reaching 1.6 million barrels per day compared with the 2004 peak of 3.4 million barrels per day, there was significant strain on Pemex to fund new projects. At $77.5 billion in June, Pemex financial debt puts a significant strain on funding new projects, especially deep water fields. As of today, Pemex has no production from any deep water fields.
Petrobras has production growth to account for, thanks to production from the Pre-salt offshore fields. As production in Q2 was 3.34 million barrels of oil equivalent per day, up 14.1% over last year, the Pre-salt fields were a huge factor, as they provided 2.78 million of the 3.34 million barrels per day of production.
Petrobras CEO Magda Chambriard commented that she believes both nations will benefit greatly in the long run. Pemex CEO Juan Carlos Carpio commented that this partnership signifies the start of a new collaborative relationship between the two companies. This relationship will involve working on future projects together and sharing knowledge.
The partnership also shows the broader efforts of Latin American state-owned energy companies to collaborate in order to grow their presence and capabilities in the international energy market.
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