Q: Mexico Petroleum Company positions itself as a key player in onshore development. How would you describe the company’s mission and long-term vision in Mexico’s evolving energy landscape?
A: Mexico Petroleum Company was established in the wake of the 2014 Energy Reform, which opened the door for private participation in Mexico’s oil and gas sector. Around that time, shale development had already transformed the US energy landscape, particularly in the Permian Basin, where innovative drilling and completion technology unlocked vast unconventional reserves. We saw an opportunity to bring that expertise to Mexico, where the same source rock that has produced conventional oil for over a century remains largely untapped.
Shale development in Mexico has yet to reach its full potential. PEMEX drilled a number of wells to demonstrate technical feasibility, and those wells proved that the resource exists. However, developing shale commercially requires the kind of specialized knowledge and operational experience found in places like Midland, Texas, or southeastern New Mexico: regions that collectively produce over 6MMb/d and 25Bcf/d. In comparison, Mexico’s total national output currently hovers around 1.97MMb/d.
In the past few years, many exploration and production companies left Mexico, however we made the deliberate choice to stay. We believe deeply in Mexico’s potential and in our long-term vision here. During that period, we strengthened our team with experienced professionals and dedicated our time to detailed analysis—geophysical, geological, and community-based—of several onshore blocks. After more than four years of evaluation, we have identified an area that aligns perfectly with our technical and environmental criteria. We have studied every aspect of it, from ecological impact to infrastructure logistics, ensuring that development can proceed responsibly and sustainably.
Now, under the Sheinbaum administration, there is greater openness to responsible sustainable development. The President has stated that sustainable development can proceed when conducted with best practices and strict environmental standards, which are principles that are central to how we operate. With this more favorable policy environment, investor confidence is returning. Access to capital is essential for advancing these projects, and we are seeing encouraging signs that international investment is beginning to flow back into Mexico’s onshore sector.
Q: What factors make Mexico’s onshore basins attractive for investment and development?
A: The foundation of any successful project begins with the rocks: whether they contain oil and whether it can be extracted commercially. Based on our studies, we estimate a break-even price of around US$40/b, which is highly competitive when compared to the Permian Basin’s average of US$55/b. This means that Mexico’s shale formations can be developed efficiently using best-in-class technologies.
In addition, Mexico has a skilled and motivated workforce eager to participate in this new phase of onshore development. The local communities in the areas where we operate have long been familiar with oil and gas production and have shown strong support for responsible oil development. We maintain open communication with them to ensure that our operations bring tangible benefits, minimize environmental impact, and strengthen local economies.
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