Pemex Opens the Door to More Mixed Contracts in Mexico

Mexico · ENERGY

Mexico’s state oil company wants to speed up private investment with flexible contracts. Its director general says Pemex’s own law allows more than current mixed deals.

A Pemex pipeline warning sign on a Mexican street. The company wants faster contracts with private partners. (Photo: The Rio Times archive.)

Pemex is opening the door to more mixed contracts with private companies. The state oil firm wants them to speed up its strategic plan.

Pemex Director Calls for Faster Private Investment

On 2 September 2026, Pemex director general Juan Carlos Carpio Fragoso urged businesses to speed up participation in exploration and extraction contracts. He said the firm is open to flexible models with private partners.

Carpio said Pemex needs to accelerate mixed contracts and go beyond what is set out in the Hydrocarbons Law. He added that Pemex’s own legislation allows additional schemes.

Current Mixed Contracts and Their Role

Pemex has signed 10 mixed contracts under the Hydrocarbons Law, Carpio said. These contracts are part of a strategy to slow the decline in crude production.

Bloomberg Linea reported that these ten contracts could add close to 39,500 barrels of oil a day. They could also add 102 million cubic feet of gas a day by December 2026.

Pemex holds a 40% stake in those deals, according to the same report.

Areas for Private Participation

Carpio listed several areas where Pemex aims to work with private companies. These include exploration, deepwater operations, and seismic development.

Other areas are hydrocarbon extraction, refinery maintenance, and modernizing petrochemical plants. He also mentioned auxiliary services and logistics systems.

Why Pemex Needs Outside Money

Pemex has faced high debt and falling production, so it needs private capital to fund projects. Its financial debt stood at US$77.5 billion at the end of June 2026, down from US$97.3 billion in September 2024.

That is a drop of about US$19.8 billion, which officials have rounded to US$20 billion. Lower debt is meant to help rebuild confidence among private partners.

Financial Support Under the Strategic Plan

The Rio Times reported that support under Pemex’s strategic plan exceeds US$30 billion. This includes a US$12 billion note issue for short-term debt and a US$13.3 billion fund managed by Banobras.

There is also a US$9.9 billion tender offer across 11 bond series. These structures are expected to cut interest costs by about US$1.5 billion from 2026.

Legal Basis for New Contract Models

Carpio said Pemex’s own law permits additional schemes beyond the Hydrocarbons Law. This legal flexibility would let the company design contracts tailored to each project.

Officials are working on business models suited to each project’s needs, according to Mexican media coverage of his remarks. Exploration needs differ from simple service contracts.

Reaction from the Business Sector

Carpio made his call at a business forum organized by Mexico’s Business Coordinating Council. No specific company commitments to new contract models have been announced.

Investors will likely wait for concrete contract terms and legal clarity before committing funds. The success of these new models depends on their profitability and continued state control.

Challenges Ahead for Pemex

Pemex must balance attracting private investment with keeping state control over oil resources. The company also needs contracts that are profitable for outside investors.

Cutting debt and improving efficiency are key to building trust. The new contract models could help, but they are not yet approved.

What This Means for Mexico’s Oil Sector

If adopted, new private contract models could help lift Mexico’s oil and gas production. They might also draw more foreign investment into the sector.

The proposals are still in early stages, and details are limited. Observers will watch for concrete steps from Pemex in the coming months.

The Role of the Hydrocarbons Law

The Hydrocarbons Law currently governs most private participation in Mexico’s energy sector. Pemex’s existing mixed contracts are signed under this law.

Carpio says Pemex’s own legislation offers more flexibility. This could allow new contract structures without changing the Hydrocarbons Law itself.

Potential Impact on Production

Mexico’s oil output has fallen to its lowest level in over 40 years. It is about 1.7 million barrels a day, of which Pemex produces 94%.

The existing 10 mixed contracts could add meaningful output by December 2026. New contract models could add to that, if they move from proposal to signed deal.

Pemex’s Debt Picture

Pemex’s debt to suppliers stood at about 374.3 billion pesos (US$21.4 billion) at the end of June 2026. That uses Banco de Mexico’s exchange rate for that date.

That was down from a peak of 517.1 billion pesos in late 2025, a fall of roughly 28%. Lower supplier debt is meant to rebuild trust ahead of new private contracts.

Next Steps for Pemex

Pemex will need to define the specific terms of any new contract models. It must also make sure they fit within its legal framework.

The company is expected to keep talking with private firms in the coming months. No timeline has been given for when new contracts might be signed.

The Bigger Picture

Pemex’s move reflects a broader push in Mexico to widen private participation in energy. The government has sought ways to boost investment without privatizing the state firm.

These new private contract models could be one tool for that. Their success will depend on execution and market conditions.

How Mixed Contracts Work

Mixed contracts are partnerships where Pemex and private firms share investment and production. Pemex keeps a 40% stake, as reported by Bloomberg Linea.

These contracts aim to add close to 39,500 barrels of oil daily by December 2026. They also aim to add 102 million cubic feet of gas per day, per the same source.

Mexico’s Hydrocarbons Law led to these 10 mixed contracts. Pemex’s director general says they are meant to help halt falling crude output.

What Pemex’s Own Law Allows

On 2 September 2026, Pemex director general Juan Carlos Carpio said Pemex’s legislation allows schemes beyond those in the Hydrocarbons Law. Several Mexican outlets reported his remarks.

This means Pemex can explore contract types not explicitly listed in the Hydrocarbons Law. That gives it more room to design deals with private firms.

Pemex’s internal law grants broader contracting powers than the Hydrocarbons Law alone. Carpio made that point at the same business forum.

Financial Backing for the Plan

The Rio Times reported that Moody’s describes support under Pemex’s strategic plan as exceeding US$30 billion. This includes a US$12 billion note issue for short-term debt.

It also includes a US$13.3 billion fund managed by Banobras, a state development bank, mainly to pay suppliers. A US$9.9 billion bond tender offer across 11 series is part of the same plan.

These measures are expected to cut interest costs by about US$1.5 billion from 2026, according to the same report.

Frequently Asked Questions

What did Pemex announce in September 2026?

Pemex director general Juan Carlos Carpio called for faster private contracts and new flexible models. He said Pemex’s own law allows schemes beyond the Hydrocarbons Law.

How many mixed contracts does Pemex have?

Pemex has 10 mixed contracts signed under the Hydrocarbons Law. They could add close to 39,500 barrels of oil per day by December 2026.

Why does Pemex need private investment?

Pemex has faced high debt and falling production. Private capital can help fund projects and ease the financial strain.

Are the new contract models approved?

No, they are proposals from the director general. No specific companies have committed to these new models yet.

Sources: Bloomberg Linea; El Financiero; Infobae; La Jornada; The Rio Times.