Pemex to speed up farm-out strategy while striving for larger oil output

Mexican state-owned oil company Pemex plans to accelerate the establishment of farm-out arrangements and associations in a push to increase crude oil output and bring reserves online.

In words of the company, this mechanism will allow it to increase investments, enhance competitiveness and optimize how it spreads financial and technological risks.

This shifting of gears was announced by Pemex CEO José Antonio González Anaya in his opening address at the Mexican Petroleum Congress 2017, who said Pemex’s 2017-2021 business plan is already being deployed under the guiding principle of profitability.

According to Gonzalez Anaya, the chief challenge for Pemex in the near term is to consolidate its financial situation, taking advantage of a historical opportunity to exploit the instruments and flexibility provided in the energy reform initiative.

In the presence of Puebla State Governor, José Antonio Gali, González Anaya emphasized that 2017 will be a watershed year for the state-owned energy giant, a year in which its books will show a primary surplus for the first time in five years.

The 2017 Mexican Petroleum Congress was inaugurated by the Secretary of Energy Pedro Joaquín Coldwell.