Mexico's Pemex signs first mixed contracts with private firms to boost oil output

Mexican state oil company Pemex signed its first mixed contracts with private sector partners in a bid to reverse declining hydrocarbon production, according to President Claudia Sheinbaum's government report delivered to Congress.

The 11 deals, signed under a new contractual framework stemming from the latest energy sector reform, mark the initial phase of Pemex's plan to close 21 such agreements this year, the president said in her first government report sent to Congress on Monday.

The company expects the initiative to add up to 450,000 barrels per day (bpd) of crude oil production by 2033.

"Pemex is currently advancing in the process of formalizing a second group of allocations under this same scheme, the closing of which is expected before the end of the year," the document shows.

Pemex, which has nearly $100 billion in financial debt and owes an additional $22 billion to contractors and suppliers, expects to raise about $8 billion through the first 11 contracts with domestic and foreign partners, local media reported.

The deals are expected to add around 70,000 bpd of oil and 610 million cubic feet per day of natural gas.

A new 10-year strategic plan for Pemex was also presented recently, aiming to make the company financially viable, boost reserves, and raise domestic oil production to 1.8 million bpd, up from 1.6 million bpd of crude oil and condensates.