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The global oil and gas sector in 2026 operates in an environment defined by market volatility, tight capital discipline, and an increasing need for operational efficiency. In Mexico, the industry is adjusting to a landscape shaped by ambitious state-led targets, aiming for 1.8MMb/d of liquid production and 5bcf/d of natural gas, against a backdrop of significant financial pressure. With national natural gas reliance on US imports hovering between 75% and 80%, expanding domestic supply across both conventional and unconventional basins has become a matter of long-term economic resilience. At the same time, addressing PEMEX’s liabilities and resolving widespread supplier payment backlogs are critical prerequisites to maintaining field activity and keeping service equipment in the country. Mexico Oil & Gas Summit 2026 served as a key forum for operators, financial institutions, and service providers to address the intersection of policy, capital deployment, and field operations under the legal frameworks established by SENER and the National Energy Commission (CNE). Discussions centered on how Mexico can maintain its competitive position, derisk investment, and build the infrastructure to ensure project bankability across public and private initiatives. Through its 13th edition, the Mexico Oil & Gas Summit gathered more than 200 industry leaders and key stakeholders, serving as the premier platform to address the essential topics for securing a prosperous country, industry, and society through responsible energy development. A central theme of the forum was the direct link between commercial certainty and operational continuity. Discussions highlighted how timely payment structures, transparent risk-sharing in mixed-investment contracts, and alternative supply chain financing are essential for protecting contractor liquidity and keeping projects running.
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C onference I mpact
174
companies
298
conference participants
13
34
sponsors
speakers
6,700
13th
visits to the conference website
Edition
Breakdown by job title LinkedIn pre-event CTR: 5,8% Impressions: 181,384 15.4%
President / CEO / Managing Director/ C-Level
25.5%
Director / VP / Partner
30.2%
Manager
28.8%
Associate / Executive / Coordinator / Consultant / Lead / Analyst
Engagement rate: 7.45%
Twitter pre-event CTR: 1.3% Impressions: 3,757 Engagement rate: 0.3 %
LinkedIn during the event CTR: 13,8% Impressions: 7,495 Engagement rate: 15,35%
Twitter during the event CTR: 1.2%
Impressions: 885
Engagement rate: 0.4%
Matchmaking Mexico’s leading B2B conference organizer uses a customized app to deliver an unparalleled experience The MBE App delivered AI-powered intent-based matchmaking to Mexico Oil & Gas Summit 2026 attendees
MBE App Impact
Matchmaking intentions
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1:1 meetings conducted
Total
2,183
813 Trading 1370 Networking
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C ompany A ttendance •
149MKM
•
Empresario
•
ABB México
•
Endress+Hauser
•
Aerial UAS Solutions
•
Energía Regional
•
Aggreko Mexico
•
Energy Experts
•
Alis Bio
•
Enestas
•
ALKHORAYEF
•
Eni México
•
Alliance
•
ENMEX
•
AmaranZero
•
EnReach Hot Tap Services Inc.
•
AMESPAC
•
Envent Engineering
•
AmSpec
•
Envirosoft
•
aosenuma
•
ERM
•
Asociación Mexicana de Empresas de Servicios Petroleros AC
•
Estacion Modulares
•
Evans Consoles
•
Atlas Cpoco
•
Exsto US
•
Autodesk
•
ExxonMobil Mexico
•
Baker Hughes
•
EY Mexico Asuntos de Consultoría, S.C.
•
BBVA Mexico
•
FARO CREAFORM
•
Becerril, Coca & Becerril
•
Ferraez Comunicacion Petroleo & Energia
•
Beicip-Franlab
•
FitchRatings
•
Blackwell Strategy
•
FQE POWER, INC
•
BNamericas
•
Fraguva Energy
•
Bow River Solutions
•
Geolis
•
Brenntag Mexico
•
GHGSat
•
Broväg Consulting
•
Global Business Reports (GBR)
•
Bulkmatic de México
•
Gobierno de Alberta
•
Bureau Veritas
•
GRIJALVA ENERGY
•
Calibraciones Profesionales e Ingeniería
•
GRUPO CIITA
•
Cantronic Systems (Canada) Inc.
•
GRUPO IMPERIAL CORPORATIVO
•
CARGOWELD
•
Grupo IPS
•
CEMOG
•
Grupo México
•
CME Oil and Gas / OPEX
•
GRUPO MEXICO INFRAESTRUCTURA
•
CMOG
•
Gulf Latin America
•
COMMOSA
•
Harbour Energy
•
Computer Modelling Group Ltd
•
Heartland Engineering
•
Consorcio Petrolero 5M del Golfo (C5M)
•
Hello Solticom
•
Consultec International inc
•
HF Offshore
•
Cotemar
•
Hokchi Energy
•
CSIPA
•
Holland House Mexico
•
Cuatrecasas
•
HOOMAN
•
Délégation générale du Québec à Mexico
•
Hyland
•
Demeresa
•
Ibañez-Parkman
•
DHL GLOBAL FORWARDING (MEXICO)
•
IEFSA
•
DIPREM Global
•
iik Technologies
•
Dirección Empresarial
•
IMP
•
DNV
•
Indimex
•
DuPont Vespel®
•
Inerco
•
DVL Film House
•
Ingecoper México
•
Dynatics Workflow Management
•
Instituto Mexicano del Petróleo
•
ECLIPSE OFFSHORE
•
International SOS
•
Edelman
•
IPS Powerful People
•
Embassy of Canada
•
Jaguar E&P
•
Emerson
•
Jamieson-group
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C ompany A ttendance •
Kiewit
•
Samson Control Mexico
•
Kinjal Gas
•
SBI BioEnergy
•
KPMG México
•
SEAMAR OFFSHORE MEXICO
•
KUATRO MODULARES
•
SENEI
•
Lukoil
•
Shell
•
Madarina Company
•
SI Group
•
McKinsey & Company México
•
SL Intelligence
•
METALMED - TRITORC
•
SLB
•
Mexico Petroleum Company
•
SpaceX
•
MGI (a PEMEX subsidiary)
•
Spencer Stuart
•
MODEC
•
Sperton
•
Muvoil Consulting
•
SPM Oil & Gas
•
Nabors Industries
•
Sproule ERCE
•
NAFIN
•
STE consultec
•
NG RENTA
•
SUMMA INTERMEDIARIO DE REASEGURO
•
Norton Rose Fulbright
•
TechnipFMC
•
Nuvoil
•
Tecnohargrove
•
OCA GLOBAL
•
Tejiendo Redes Infancia
•
OH Maritime Services
•
TFMC
•
Oil and Gas Alliance
•
TriGen
•
Oilmex Energy
•
Trigen Energy
•
ONU (ICE-SRM)
•
Viridien
•
OPEX
•
VulcanX Energy Corp.
•
P.D.McLaren Limited
•
W-Industries
•
Perenco Brasil
•
Weatherford Mexico
•
Petrolera de Amatitlán
•
Western Drilling Tools Inc.
•
PETROQUIMIA DEL GOLFO
•
Woodside Energy
•
Phillip International
•
Worley
•
Posicionamientos Marinos Malaquias
•
Zimat Consultores
•
POTENVAL
•
ZION NDT
•
REASINTER INTERMEDIARIO DE REASEGURO
•
ZYGHT
•
Recon Intelligence Corporation
•
Relesur
•
RM Industrial & Naval Solutions
•
RMSH
•
ROCAPORT
•
RODANNMARINE
•
Rotaflow Fire Systems
•
Roxtec de México
•
S&P Global Energy
7
PROGRAM
W E D N E S D AY, S E P T E M B E R 3 0 09:00
MAXIMIZING PRODUCTION OUTPUT: SUPPLIER AND TECHNOLOGY PERSPECTIVES
Moderator: Alex Gonzales, Executive Director Strategy & Growth for LATAM of Weatherford Speaker: César A. Granados, Director General of CME Oil and Gas / OPEX Rossy Pérez, General Manager Mexico of Beicip-Franlab Jose Edel Alvarez Delong, CEO of Nuvoil Edmundo Leyva, Commercial Director of SLB 09:50
DECARBONIZING UPSTREAM: PATHWAYS TO LOW-CARBON E&P IN MEXICO
Moderator: Ana Matute, Marketing Director, Latin America of Emerson Panelists: Daniel Ehrlich, Partner & Commercial Director of aosenuma Nicte Ovando, Developer of Mini Grid Energy Projects of Aggreko Alejandro de Jesus, Senior Partner of ERM Sara Landon, Executive Director of Inerco 10:40
COFFEE BREAK & AI-BASED MATCHMAKING
11:30
MEXICO OILFIELDS BALANCE AI, COSTS AND OPERATIONAL RESILIENCE
Moderator: Cesar Vera, Commercial Commercial Officer of CEMOG Panelists: Daniel Pizzato, President of Aerial UAS Solutions Francisco Zamudio, Service Sales Manager ABB Automation Energy Industries of ABB Julio Ortiz, Director Mexico Control Systems & Software of Emerson Daniel Hernandez, SVP Commercial & Deputy Country Manager of Gulf Latin America Teresa Gallegos, Strategic Legal & Transactional Executive Energy & Infrastructure of Quantum Energía
12:20
MEXICO’S UPSTREAM PRIORITIES: SOVEREIGNTY, OPTIMIZATION AND ESG
Moderator: Javier Mundo, Head of Energy and Natural Resources for the cluster of Mexico and Central America at KMPG Panelists: Andres Brügmann, Partner at SL Intelligence Eckhard Hinrichsen, Country Manager of DNV Edgar Kiyoshi, Head of Exploration and Extraction of Mexican Petroleum Institute (IMP) Gaspar Franco, Co-Founder and Director of Technical Strategy and Energy Regulation of Fraguva Energy
13:10
REJUVENATING MEXICO’S MATURE OIL FIELDS: PROFITABLE LOW-CARBON BARRELS Speaker: Pieter Kaptejin, CEO of TriGen
13:30
NETWORKING LUNCH & AI-BASED MATCHMAKING
Check the panel/presentation’s highlights on mexicobusiness.mx clicking on the icon
8
PROGRAM
W E D N E S D AY, S E P T E M B E R 3 0 15:00
ONE PLAY, TWO COUNTRIES: AN EAGLE FORD PLAYBOOK FOR MEXICO
Speaker: Fidel Juárez, Mexico Country Manager and Team Lead, Reservoir Engineering of Sproule ERCE
15:20
CAPITAL, LIQUIDITY, AND LEGAL DE-RISKING: PROJECT BANKABILITY AND SUPPLY CHAIN FINANCE
Moderator: Arturo Medellín, Partner at McKinsey & Company Panelists: Estela Campuzano, Legal and Regulatory Compliance Director of Energía Regional Gleb Kouznetsov, Energy Finance Director of Bancomext Rafael Espino, President of AMESPAC Omar Castillo, Sr Vice President GTB CIB of BBVA 16:10
OPERATOR UPSTREAM OUTLOOK: VALUE CREATION AND EXECUTION EXCELLENCE
Moderator: Alejandra Leon, Director, Strategy & Business Development of S&P Global Energy Panelists: Alberto de la Fuente, SVP Commercial & Deputy Country Manager of Harbour Energy Óscar Roldán, Director of CONSORCIO PETROLERO 5M DEL GOLFO Dr. Vinicio Suro Pérez, Vicepresident of Hokchi Energy William Waggoner, CEO of Mexico Petroleum Company 17:20
CONTRACTS MATTER-WONDERFULLY!
Panelists: William Waggoner, CEO of Mexico Petroleum Company 17:30
NETWORKING COCKTAIL & AI-BASED MATCHMAKING
Check the panel/presentation’s highlights on mexicobusiness.mx clicking on the icon
9
MAXIMIZING PRODUCTION OUTPUT: SUPPLIER, TECHNOLOGY PERSPECTIVES As mature fields face sharp natural decline
Operators across the country face sharp
rate s a n d s h a l l ow-wate r a ss e t s fa ce
natural decline rates in aging onshore
operational delays, Mexico’s upstream oil and
assets, alongside operational pressure to
gas sector is increasingly restructuring field
bring new offshore discoveries online faster.
execution models. Operators are deploying
Reversing these trends requires replacing
integrated service contracts, modular
traditional, fragmented execution models
wellhead gas processing, and dynamic
with coordinated field technologies, while
subsurface software to overcome logistical
proactively addressing a critical human
non-productive time and maintain continuous
capital shortage by attracting young talent,
flow rates. These coordinated technologies
investing in early-career mentoring, and
allow state operator PEMEX and private
bridging old school domain expertise with
concessionaires to accelerate shallow-water
new digital capabilities.
developments, optimize hydraulic fracturing, reservoirs.
Rethinking Offshore Execution and Commercial Models
Mexico’s upstream oil and gas sector is
In shallow-water operations, logistical friction
turning to integrated service contracts,
and disconnected vendor contracts have
wellhead gas processing, and advanced
historically driven up non-productive time
software to stabilize production in declining
(NPT) and expanded project budgets. César
mature fields and accelerate shallow-water
Granados, Director General, CME Oil and Gas
developments to support national production
and OPEX, argues that restructuring offshore
targets that are striving to reach 1.8 MM/d, up
service models is essential to overcoming
from current levels of 1.6 MM/d.
these delays. Granados emphasizes that
and de-risk recovery strategies across aging
Mexico represents a world-class engineering environment across deepwater, shallowwater, and non-conventional reservoirs, but unlocking its value requires flexible commercial models. “The appetite is there. As long as mechanisms and contract models are established that allow private companies to invest, flow, and grow, that potential will ultimately be capitalized into barrels at the surface,” Granados noted. Citing his company’s direct operational experience across more than 10 offshore platforms, such as the Bacal field project, where CME/OPEX expanded production from 4Mb/d–4.5Mb/d to nearly 20Mb/d over 20 months through financial discipline, lifting systems, and subsurface evaluation, single general contractors now bundle platform drilling operations, supply vessel scheduling, and marine logistics into unified agreements. This contract model synchronizes fleet movements directly with rig operations, which eliminates vessel standby hours and brings new wells online ahead of schedule.
10
Protecting Mature Onshore Assets and Wellhead Processing
Á l va rez s a i d t h a t , a cco rd i n g to t h e company’s experience, deploying modular gas sweetening and field compression units,
Experts note that aging onshore fields
such as those used at the Ixachi gas field
present distinct operational hurdles, where
where modular processing plants up to 150m
rising water production and changing gas-
high were erected in just 10 months, allows
to-oil ratios frequently lead to well shut-ins.
operators to process sour gas directly at the
Alex Gonzales, Executive Director Strategy &
wellhead and keep wells online with minimal
Growth for LATAM, Weatherford, points out
financial risk.
that reversing these losses requires focusing
on well integrity across its entire lifecycle, from initial design through to ultimate plug
Modernizing Well Construction and Subsurface Intelligence
and abandonment, while removing personnel from high-hazard red zones on the rig floor,
At the same time, technology providers
eliminating downhole trips, and exploring
like Weatherford focus on modernizing
long-term transitions like converting mature
completion practices and well construction
fields to hydrogen production.
through digital platforms and integrated s e r v i c e s . I n M ex i c a n s h a l l ow - w a t e r
To maintain continuous flow rates without
operations, integrated service models
waiting for long-term pipeline extensions,
managing drilling, completion, and workover
Jose Edel Álvarez, CEO, Nuvoil, has focused
services reduced drilling schedules across
on field-level processing. Addressing data-
24 wells by over 40 days, unlocking US$6
rich mature environments like the Burgos
million in cost savings and bringing wells
basin, where operators manage over 250
onto early production. Across onshore assets,
wells with complex surface-subsurface
deploying multidisciplinary completion teams
disconnects. “What destroys the most value
using nodal analysis software (WellFlo) and
on the balance sheet is not whether a well is
automated well construction platforms
operating at its absolute maximum potential,
(Centro) allowed operators to optimize
but the risk that the well stops producing
hydraulic fracturing spacing, delivering
entirely. The days that a well goes offline
onshore completion programs 35% faster
result in deferred production that destroys
while exceeding expected oil production
the financial model of the field,” he said,
by 50%. Concurrently, real-time downhole
stressing that losing that production costs
monitoring and automated completion
ten times more than what it would cost to
toolsets provide continuous data streams to
install the flexible technology required to
maintain well integrity and protect flow rates
keep the well running.
over the asset lifecycle.
11
Finding unproduced oil pockets in complex
Connecting subsurface intelligence to
reservoirs requires updating subsurface
surface facilities requires replacing slow,
geological models rather than drilling
periodic desktop iterations with integrated
speculative exploratory wells. Rossy Pérez,
digital architectures and automated well
General Manager Mexico, Beicip-Franlab,
construction. Industry insights from SLB
emphasizes that static subsurface models are
emphasize that evaluating hundreds of
no longer sufficient for complex reservoirs.
simulation scenarios simultaneously allows
Utilizing dynamic stratigraphic modeling
engineering teams to identify which variables
and seismic inversion software allows
truly impact asset performance across
engineers to map facies architecture and
complex reservoirs.
fluid flow in real time. Pérez highlights that subsurface evaluation must be approached
Edmundo Leyva, Commercial Director, SLB,
as an integrated unit from start to finish,
stresses that surface logistics and end-to-
connecting geology, well construction, and
end integration are vital. “You can easily gain
surface facilities. “We frequently find that the
production at the wellhead, but if you lack
problem is not necessarily the reservoir, but
adequate preparation in water separation,
the mechanical state of the well or surface
gas handling, transportation, and surface
infrastructure that cannot sustain what the
logistics, that production stalls,” he said.
reservoir is capable of producing,” she says,
Leyva advocates for closing the value chain
adding that while AI accelerates study results
to minimize the friction steps between
from months to minutes, it must remain
data acquisition, evaluation, decision, and
grounded in reservoir physics and validated
execution.
by domain experience. Furthermore, with mature fields projected
Closing the Surface-Subsurface Loop with Digital Industrialization
to account for 80% of global hydrocarbon production by 2030, recovering lower-cost incremental barrels requires shifting from
According to technical analysis by SLB,
reactive, one-off repairs to vendor-agnostic
leveraging cloud computing and AI-driven
digital platforms like IDEX. Reflecting
automated data handling reduces the friction
on 28 years in the sector, shifting from
of manual data conditioning, transforming
passing directional surveys over analog
periodic reservoir studies into continuous
radio to remotely monitoring 3,000 wells
digital representations of the asset. This
and managing automated valve networks
dynamic approach de-risks secondary
p r o d u c i n g 7 0 0 M b /d , L e y v a a r g u e s
and tertiary recovery (EOR) strategies by
that mature fields demand full process
pinpointing exact bypassed reserves within
industrialization, shifting response times from
existing field limits.
hours to minutes.
12
By digitizing well surveillance, automating
downhole scaling or pressure drops before
procedure execution, and establishing
total production loss occurs. Ultimately,
standardized workflows across drilling,
fostering strategic collaboration among
completion, and plug and abandonment
international service providers, operators, and
(P&A), operators can continuously rank
local Mexican companies while developing
intervention candidates across an entire
a new generation of talent will ensure the
portfolio, close the feedback loop between
country’s energy sector delivers sustainable,
execution and post-job learning, and prevent
long-term returns.
DECARBONIZING UPSTREAM: PATHWAYS TO LOW-CARBON E&P IN MEXICO
Experts at Mexico Oil and Gas Summit
determine whether low-carbon projects
2026 argue that upstream decarbonization
advance. The first is precise measurement
in Mexico depends on precise emissions
of where emissions occur. The second is
measurement, fast-deployable gas capture
fast-deployable gas capture and power
and modular power, and early community
technologies. The third is a social license
engagement. With PEMEX flaring and venting
that recent court rulings have made legally
rising in 2026 and Mexico still required to
unavoidable.
use 98% of associated gas, panelists from Emerson, Inerco Consulting, ERM, aosenuma,
“58% of Mexico’s GHG emissions come from
and Aggreko frame emissions reduction as
the oil sector. Lowering emissions requires
an operational efficiency and financing issue.
increasing operational efficiency through
A recent Supreme Court ruling that lets indigenous communities join constitutional disputes makes social license a precondition for project viability. Mexico’s oil and gas operators can no longer treat emissions reduction and production growth as competing agendas, according to experts at Mexico Oil and Gas Summit 2026. Speaking on a panel about upstream decarbonization, executives from Emerson, Inerco Consulting, ERM, aosenuma, and Aggreko argued that three things now
13
the integration of new technologies,” says
flaring and methane-reduction projects
Sara Landon, Executive Director, Inerco
with support from the Global Flaring and
Consulting.
Methane Reduction Partnership (GFMR), reports MBN. In 2Q26, PEMEX and GFMR
Landon cites a 2026 World Bank report that
formalized studies for gas recovery systems
places Mexico fifth worldwide for gas flaring,
at gas processing centers including Cactus,
at 9.6 billion m³ per year. She adds that 2025
according to the company’s 2Q26 report. The
estimates from the International Energy
stakes extend beyond climate commitments:
Agency put the country’s methane output
every cubic foot of gas flared is a cubic foot
at about 1.2 million t, with roughly 696,000t
that must be imported at market price.
tied to offshore activity. Before discussing technology, she says, operators need to know
From Detection to Distributed Power
exactly where emissions occur, how they are distributed, and how large they are across the
Measurement is also becoming a financing
territory. Continuous, site-specific monitoring
condition. Mexico reported just 3% of its
must then support solutions that are also
oil and gas output under the UN’s OGMP
economically viable, such as gas compression
2.0 framework in 2025, and PEMEX has
and modular power generation units.
yet to join, reports BNamericas. Reaching the framework’s highest level requires top-
Ana Matute, Marketing Director Latin
down tools such as satellites, drones, and
America, Emerson, frames the challenge
aircraft-mounted sensors. Yet continuous
as an operational opportunity rather than a
measurement represents only 0.03% to 0.6%
trade-off. “Sustainability and productivity are
of gross production value, and many leak
not at odds. On the contrary, sustainability is
detection and repair programs pay back in
critical to reaching the long-term objectives
under 12 months. bnamericas
held by the oil sector,” says Matute. She points to the regulatory requirement that operators
Where captured gas has no pipeline outlet,
use 98% of associated gas.
modular power offers an alternative to flaring
That target remains distant. PEMEX sent
or diesel. Aggreko, represented on the panel
618MMcf/d of natural gas into the atmosphere
by Developer of Mini Grid Energy Projects
in 1Q26, a 78.6% increase from 346MMcf/d
Nicté Ovando, has documented microgrid
in 1Q25 and equivalent to 12.7% of total gas
deployments that run entirely on natural gas
production, according to PEMEX’s 1Q26
and become operational within 14 days. The
results. PEMEX has formally endorsed
generators each ship on a single truck, cutting
the World Bank’s Zero Routine Flaring by
freight and crane costs by 50%. When paired
2030 initiative and identified 35 priority
with battery storage, these systems absorb
14
load spikes from artificial lift equipment and
as interested third parties, social license is
avoid costly shutdowns. They also turn site
a nonnegotiable precondition to project
gas into on-site electricity.
viability,” says Alfonso Caso, Partner & Founder, aosenuma. On Aug. 25, 2026,
Social License as a Legal Precondition
the Supreme Court recognized indigenous communities as interested third parties in
Panelists stressed that technology alone will
constitutional controversies that may affect
not carry projects forward. “Real sustainability
them, for the first time, reports La Jornada.
is achieved through development that
The ruling does not allow communities to
satisfies current needs without compromising
initiate a controversy, but it does let them
those of the future, balancing economic
intervene in one already underway, review the
growth and environmental responsibility,”
case file, and present arguments.
says Alejandro de Jesus, Senior Partner, ERM. He points to water scarcity, physical security,
Fo r o p e rato r s , t h e r u l i n g re i n fo rce s
infrastructure gaps, and shifting regulation
requirements lenders already apply. Banks
as challenges operators face alongside
that follow the IFC Performance Standards
emissions. He says future energy projects
and the Equator Principles require social
will be judged by more than the energy they
impact assessments before issuing credit. That
produce. They will also be judged by their
makes early stakeholder mapping, territorial
capacity to deliver reliable, low-carbon power
intelligence, and security risk analysis
while protecting biodiversity, managing
prerequisites for capital, not afterthoughts.
water responsibly, and creating shared value
Emissions infrastructure is expected to
for surrounding communities.
operate for 20 to 30 years. Panelists concluded that aligning decarbonization with
That shared value now carries legal weight.
local development is what allows those assets
“With indigenous communities now entitled
to remain in operation.
to participate in constitutional disputes
MEXICO OILFIELDS BALANCE AI, COSTS AND OPERATIONAL RESILIENCE
At the Mexico Oil & Gas Summit 2026,
success in Mexico hinges on balancing high
industry leaders highlighted that while
deployment costs with operational resilience,
advanced technologies like AI, predictive
cash flow stability, and collaborative financial
analytics, digital twins, and robotics are
frameworks.
critical for optimizing oilfield operations, their
15
The Mexican energy sector is experiencing a
highlighted the use of drones, crawlers, mini-
significant operational shift. At the Mexico Oil
ROVs, LiDAR, and sonar to inspect offshore
& Gas Summit 2026, industry experts met to
and onshore infrastructure.
discuss how next-generation oilfield services can navigate the complex balance between
“Collecting data through robotics is only the
cutting-edge technology, cost efficiency,
first step,” says Pizzato. “The real value lies in
and operational resilience. As operators face
processing and analyzing that data to create
increasing margin pressures and technical
actionable insights for asset management”.
challenges, the integration of advanced tools has moved from a future concept to an
From an automation perspective, Francisco
operational necessity.
Zamudio, Service Sales Manager, ABB Automation Energy Industries, emphasized
“AI and digital transformation are changing
how digital applications optimize processes.
how we view operational health,” says Cesar
Zamudio stated that ABB focuses on
Vera, Commercial Officer, CEMOG. Vera notes
integrating digital tools to improve client
that while technology provides massive
efficiency, increase future profitability, and
amounts of data, the human element remains
lower operating costs while maintaining high
essential to interpret dashboard insights and
safety standards.
drive meaningful action on the ground. “AI does not replace human engineers,” says
Technical Solutions and Industrial Automation
Zamudio. “It accelerates knowledge and enriches decision-making processes across complex operational environments”.
Panelists detailed how specific digital tools and hardware are currently deployed across
F u r t h e r i n g t h e f o c u s o n p re d i c t i ve
Mexican oilfields. Daniel Pizzato, President,
capabilities, Julio Cesar Ortiz, Director Mexico
Aerial UAS Solutions, explained the role
Control Systems & Software, Emerson,
of robotics and autonomous systems in
addressed the transition toward predictive
m a i n t a i n i n g a ss e t i n te g r i t y. P i z z a to
maintenance and digital twins. He also noted that combining information technology with operational technology allows operators to anticipate equipment failures rather than merely responding to them. “Machine learning models allow us to analyze dynamic equipment like pumps, turbines, and compressors,” says Ortiz . “By simulating conditions through digital twins before field implementation, operators significantly reduce operational risks and optimize costs”.
Financial Strategies and Market Bottlenecks While technical solutions offer high potential, severe financial headwinds in the Mexican market create major deployment bottlenecks. O p e rat i o n a l co n t i n u i t y i s f re q u e n t l y threatened by delayed payment cycles and tight cash flows.
16
Te re s a G a l l e g o s , S t ra t e g i c L e g a l &
Gulf Latin America, stressed the necessity
Tr a n s a c t i o n a l E xe c u t i v e , E n e r g y &
of flexible commercial models. Hernández
Infrastructure, outlined the scale of these
emphasized that maintaining a skilled
commercial challenges. Gallegos pointed out
workforce and sustaining long-term projects
that PEMEX recorded significant accounts
requires financial structures that protect
payable burdens, creating financial pressure
cash flow while encouraging continuous
across the supply chain.
innovation.
“Cash flow uncertainty remains a critical risk
“Navigating current market realities requires
factor for service providers,” says Gallegos.
strong collaboration across the entire value
“To ensure continuity, companies must
chain,” says Hernández. “Without balanced
leverage structured commercial frameworks,
commercial terms, technical innovation
strategic alliances, and innovative financing
cannot reach its full potential in the field”.
mechanisms”. The overarching consensus among the Gallegos cited existing financial instruments
experts was clear: technology alone cannot
such as development bank programs,
solve the challenges of the Mexican energy
factoring schemes, and special purpose
market. Achieving true operational resilience
vehicles designed to maintain liquidity for
requires a comprehensive strategy that pairs
contractors.
advanced technical tools, such as AI, robotics, and digital twins, with sound financial
Complementing this perspective, Daniel
management and collaborative commercial
Hernández, Managing Director LATAM,
structures.
MEXICO’S UPSTREAM PRIORITIES: SOVEREIGNTY, OPTIMIZATION AND ESG impacts PEMEX, private operators, energy regulators, and industrial gas consumers across Mexico’s energy value chain. Sustaining strategic upstream development while managing PEMEX’s financial liabilities, which stood at US$84.5 billion at the start of 2026, requires innovative capital-deployment frameworks. Experts say long-term balance sheet stability dictates how operators structure co-investment models across core producing assets and exploration blocks. The federal government provided US$21.7 billion in financial assistance to PEMEX in 2025 alone, yet short-term supplier debt Mexico’s upstream sector must manage
remained critical at approximately US$28
PEMEX’s US$97.3 billion debt and US$28
billion. Furthermore, SENER’s mixed-contract
billion supplier arrears while attempting to
model has seen slow adoption, with only five
sustain 1.8MMb/d baseline crude output and
of 21 planned contracts awarded by late 2025,
reduce natural gas imports. To address a 51.2%
contributing a marginal 40Mb/d against
spike in methane emissions, state and private
the backdrop of total national production
stakeholders are shifting toward public-
averaging below 1.6MMb/d.
private partnerships, international abatement grants, and fiscal incentives to fund capture
Addressing this funding gap, Javier Mundo,
infrastructure. This strategic pivot directly
Head of Energy and Natural Resources for
17
Mexico and Central America at KPMG, points
in plays like Chicontepec. Furthermore,
out that while renewable energy is gaining
resolving contractor payment delays and
global traction, hydrocarbons will remain
maintaining clear legal and regulatory
indispensable to the energy mix for decades
functions remain essential to fostering
to come, making upstream investment
investor trust in these joint structures.
models vital for national sovereignty and sustainability. “Mexico has every type of
“Aligning the fiscal regime was necessary
reservoir imaginable, from deepwater and
to make Mexico competitive against other
shallow-water to carbonated formations,
jurisdictions,” says Brügmann. He explains
heavy oil, light crude, and non-conventional
that the main challenge now lies in natural
plays,” says Gaspar Franco, Co-Founder and
gas and surface infrastructure, where fiscal
Director of Technical Strategy and Energy
incentives are required to attract capital for
Regulation, Fraguva Energy.
midstream gathering and processing. PPPs serve as an essential vehicle to bridge state
Franco notes that this geological diversity
capital constraints across the hydrocarbon
allows any profile of company to enter and
value chain, provided projects establish
deploy specialized technologies, because no
strong social licenses and clear legal certainty.
single operator can address these challenges alone. Franco adds that Mexico possesses the legal mechanisms to deploy investment,
Technical Balance, Risk-Sharing, and Process Industrialization
provided regulators and authorities maintain the openness to dialogue and create the
Arresting steep decline rates across mature
necessary conditions to translate potential
onshore and shallow-water reservoirs, where
into barrels at the surface.
national liquid production fluctuates around 1.6MMb/d, demands specialized subsurface
Andrés Brügmann, Partner, SL Intelligence,
research and field recovery technologies.
highlights that public-private partnerships
“Each party must do what it needs to do at
(PPPs) offer a viable path to boost sector
the exact moment it needs to do it,” says
infrastructure and capital deployment,
Édgar Kiyoshi Nakamura, Head of Exploration
provided projects establish strong social
and Extraction at the Instituto Mexicano del
licenses. Brügmann emphasizes that
Petróleo (IMP). He emphasizes that when
PPPs serve as a key vehicle for the new
problems arise, true risk-sharing keeps
administration to bridge state capital
partnerships together, and that decision-
constraints, particularly across PEMEX’s
making in a capital-intensive industry must
hydrocarbon value chain, from natural
be supported by technical and scientific rigor
gas production, processing, storage,
to eliminate uncertainty.
and transportation to petrochemical modernization and complex field extraction
18
To maximize recovery factors across aging
cheap US import prices. Without accelerated
assets, which account for over 400 of Mexico’s
development of unconventional reserves
700 fields, operators deploy secondary and
and key offshore fields like Zama and Trion,
tertiary enhanced oil recovery techniques
long-term projections from the International
alongside advanced subsurface research.
Energy Agency (IEA) warn that Mexico
IMP is deploying specialized mechanical flow
risks becoming a net importer of crude oil,
control devices, such as Venturi-type tools,
importing up to 500Mb/d by 2030.
which leverage natural reservoir pressure to sustain continuous production in mature gas
“Over half of Mexico’s prospective resources
wells, delivering flow increases ranging from
lie in non-conventional reservoirs,” says
20% to 50%.
Brügmann. observes that because standalone gas projects struggle to cover infrastructure
In complex high-pressure, high-temperature
costs at current import prices, operators must
environments like the Ixachi field, the IMP
develop gas and crude in a unified, holistic
provides aerospace-grade downhole tools,
strategy, leveraging secondary recovery and
dynamic column simulation, and offshore
co-located liquids to fund gathering and
structural lifespan assessments to de-risk
transportation networks. Growing energy
operations. Managing field decline does not
demand from data centers and industrial
depend on a single silver-bullet technology,
expansion across North America could cause
but on identifying the optimal technological
pipeline gas prices to surge significantly
combination tailored to each field’s specific
over the coming decade, making domestic
mechanical and pressure conditions, which
midstream development an urgent priority.
can boost recovery factors by up to eight percentage points.
Operational continuity is directly linked to infrastructure integrity, as aging offshore
Mitigating Natural Gas Dependency and Infrastructure Bottlenecks
platforms, many approaching 50 years of continuous operation, face rising maintenance friction that threatens daily throughput and
Expanding domestic natural gas extraction
workforce safety. “Much of the offshore
across shallow-water, deepwater, and
infrastructure is reaching or exceeding
unconventional plays remains critical to
its fifty-year operational lifespan, making
mitigating national energy vulnerability, as
asset integrity a critical priority to prevent
Mexico currently relies on imports, primarily
accidents and protect baseline production,”
US pipeline gas, for approximately 75% of its
says Eckhard Hinrichsen, Country Manager,
total consumption. Key domestic natural gas
DNV. He advocates for deploying field-level
initiatives, such as the deepwater Lakach field
gas capture, platform electrification via
development, continue to face delays due
subsea power cabling (Power-from-Shore),
to narrow margins when competing against
and virtual gas distribution networks to
19
connect stranded production directly to
Enforcing strict environmental standards
regional industrial hubs.
while maintaining output requires deploying direct emission-mitigation technologies
Decarbonization, Emission Abatement, and ESG Standards
across surface facilities. Brügmann notes that private projects are adhering to stringent ASEA methane programs and CNH natural
Enforcing strict environmental standards
gas guidelines by deploying advanced
while maintaining output requires deploying
technologies, including gas-to-ammonia
direct emission-mitigation technologies
modular units and AI systems for platform
across surface facilities. State operators
and terminal management.
face severe environmental pressure, with methane emissions rising 51.2% in 1Q26 and
According to DNV’s Energy Industry Insights
flaring and venting reaching up to 3.925
2026, 74% of energy executives view oil and
Bcf/d, wasting 5.5% to 6% of total national
gas as essential to maintaining long-term
gas production. To address these liabilities,
energy security, prompting operators to pivot
the IMP is deploying physical inspections,
toward operational efficiency, a top priority
drone surveillance, automatic monitoring
for 81% of sector leaders. DNV highlights
systems, and satellite imaging to quantify
that integrating AI-driven monitoring and
and eliminate methane leaks across onshore
automated systems in field operations
and offshore facilities, while developing
delivers 1% to 2% in direct OPEX reductions.
ultra-selective metal-organic catalysts to
Meanwhile, scaling continuous methane
separate carbon dioxide and nitrogen from
leak detection and expanding global CCS
sour gas streams.
capacity, which is projected to grow by 70% in the near term, allows producers to lower
“The industry is effectively operating in an
carbon intensity per barrel without sacrificing
emissions surgery room, and we must rapidly
baseline supply.
implement proven technologies to reduce leak rates,” says Hinrichsen. He highlights
“Mitigating emissions and flaring must be
that DNV is partnering with operators on
viewed not only as a financial calculation
satellite leak detection, flaring recovery
or regulatory mandate, but as an ethical
systems, platform electrification, and modular
responsibility,” says Franco. He concludes that
liquefaction units in regions like Veracruz to
operators adopting proactive environmental
repurpose vented gas into high-value LNG or
standards and collaborative technology
marine fuels. Hinrichsen notes that PEMEX’s
frameworks will secure long-term capital and
formal endorsement of the World Bank’s Zero
drive sustainable production for the country.
Routine Flaring by 2030 initiative marks a vital step toward international environmental alignment.
REJUVENATING MATURE OIL FIELDS: PROFITABLE LOW-CARBON BARRELS At Mexico Oil and Gas Summit 2026, TriGen
Kapteijn says consortium-based contracting,
Energy CEO Pieter Kapteijn proposed
regulatory flexibility, and technology transfer
rejuvenating Mexico’s mature oil fields
are needed to make the projects bankable.
by pairing pressurized oxy-fuel power generation with CO2-enhanced oil recovery.
Mature oil fields offer Mexico its fastest
Based on 15 PEMEX fields holding about 7Bb
and lowest-risk path to new production.
of original oil in place, the model could add
When combined with carbon capture, they
650MMb to 820MMb of incremental crude
can also cut the emissions of every barrel
and sustain 150Mb/d of production. It would
they produce, says Pieter Kapteijn, CEO,
also store 200 million to 250 million t of CO2.
TriGen Energy. Speaking at Mexico Oil and
20
The Case for Mature Fields Kapteijn says a world-class discovery can take eight to 12 years to reach production. Mature fields, by contrast, already have wells, surface infrastructure, trained personnel, and decades of reservoir data. “The fastest way to get to new barrels is to go to a place where you already have operating fields,” he says. Because those fields have been operated for so long, the subsurface risk that usually concerns investors most has largely been resolved. The remaining upside is significant. Kapteijn explains that primary depletion typically Gas Summit 2026, Kapteijn presented a
recovers 10% to 15% of original oil in place,
model that pairs pressurized oxy-fuel power
waterflooding adds 20% to 25%, and
generation with CO2-enhanced oil recovery
enhanced oil recovery can yield another 15%
(CO2-EOR). Applied to 15 PEMEX fields,
to 20%. He describes the EOR phase as a
he says, the model could add 650MMb
source of short-term, low-cost energy for a
to 820MMb of incremental crude while
country with existing reserves. TriGen’s model rests on pressurized oxy-fuel
“CO2 is bad for the environment, but for the oil
combustion. The process burns gas with pure
industry, CO2 can have a lot of value because
oxygen and converts it into power, water,
you can use it for enhanced oil recovery”
and a concentrated CO2 stream. Kapteijn
Pieter Kaptejin
says the technology tolerates contaminated
CEO | TriGen
reducing the carbon footprint of production by about 50%. “CO2 is bad for the environment, but for the oil industry, CO2 can have a lot of value because you can use it for enhanced oil recovery,” says Kapteijn. The proposal arrives as Mexico’s reserve base continues to erode. PEMEX’s proven reserves fell from 12.4Bboe in 2014 to 7.471Bboe at the close of 2025, a decline of about 40%, according to MBN. At current production rates, the company’s proven reserves under SEC methodology cover roughly eight years and nine months of output. Meanwhile, PEMEX’s total hydrocarbon production averaged 2.44MMboe/d in 2Q26, up 4.6% from 2Q25, reports MBN.
gas, biogas, and landfill gas. The CO2 is then
21
injected into mature reservoirs to recover
limited because every component is proven.
additional oil. At the end of the EOR cycle,
Oxy-fuel combustion has logged 10,000
the field is repressurized so that up to 80% of
hours in EU industrial pilots, and CO2-EOR
the injected CO2 remains stored permanently.
has operated in the US for more than 50
Kapteijn compares the process to a washing
years. The power cycle also relies on steam
machine that rinses oil from the reservoir over
turbines rather than gas turbines, which
several cycles.
Kapteijn says avoids the supply bottlenecks created by demand from data centers and
The system produces four revenue streams.
hyperscalers.
The first is power, which Kapteijn notes can command a premium of 20% to 30% in some markets when it is certified as clean.
Commercial Design and Regulatory Space
The second is fresh water, since the process produces water rather than consuming it. The
Kapteijn identifies commercial engineering as
third is incremental oil. The fourth is carbon
the main challenge rather than technology.
storage that generates credits. Because the
A value chain that links gas, power,
carbon embedded in that oil has already been
infrastructure, and oil companies requires
captured, TriGen markets it as “blue barrels.”
partners with different risk profiles to
According to TriGen’s presentation, each site
agree on a shared framework. “The normal
could deliver 150MWe of firm power, 19Mb/d
contracting models do not work, because in
of fresh water, and 8Mb/d of incremental
a value chain, what you trade between the
oil. Each site would also sequester about
partners is risk and reward,” he says.
820,000t/y of CO2 and extend field life by 12 to 18 years.
To overcome this barrier, Kapteijn proposes a lighthouse project. It would bring together
A Portfolio Opportunity for PEMEX
a consortium of technology, sensing, and service providers to demonstrate the model to
TriGen has studied PEMEX’s mature assets
PEMEX and the government. He says storage
over the past decade. Across 15 fields
integrity would be central to certification,
representing about 7Bb of original oil
which creates demand for monitoring, AI,
in place, Kapteijn says, the model could
and digital asset modeling. The consortium
sustain 150Mb/d of incremental production
would also serve as a vehicle for technology
and reach that plateau within seven to nine
transfer to Mexican universities, workers, and
years. The portfolio would store 200 million
institutions.
to 250 million t of CO2. He estimates required CAPEX at US2.5billiontoUS3.5 billion, with
Regulation must evolve as well. “We need
many screened projects exceeding internal
the flexibility from the regulator to give us
rates of return of 30% to 40%.
the space to demonstrate, and once you have demonstrated the value of it, it will
Integration is what makes those returns
become the new norm,” says Kapteijn. He
possible, says Kapteijn. CO2-EOR and carbon
adds that a field delivering power, water, oil,
storage are often unprofitable on their own,
and carbon credits simultaneously requires
but combined in a single system they reinforce
a new regulatory framework, and TriGen is
each other. He adds that the technical risk is
seeking a first project in Mexico to prove it.
ONE PLAY, TWO COUNTRIES: AN EAGLE FORD PLAYBOOK FOR MEXICO Mexico can accelerate its unconventional
from the US Eagle Ford shale play. Analyzing
energy development and avoid costly
performance metrics across more than
operational mistakes by applying 15 years of
33,000 horizontal wells demonstrates that
technical, operational, and commercial data
long lateral lengths, optimized proppant
22
provides a clear playbook for Mexican field operations. Juárez says that the Eagle Ford play functions as an exceptionally complete natural laboratory for Mexico due to its geological continuity across the border and extensive dataset spanning more than 33,000 horizontal wells. “The Eagle Ford play provides a mature dataset that allows new basins to bypass a decade of trial and error,” Juárez says. Since its discovery around 2008, the Eagle Ford play transitioned from initial exploration to rapid scaling, underwent a downspacing adjustment in 2020, and settled into capitaldisciplined optimization. Running from the Mexican border near Laredo northeast across 30 South Texas counties, the formation features carbonate-rich, brittle mudstone deposited at depths between 4,000– 14,000ft. Thermal maturity fairways grade
“The Eagle Ford play provides a mature
from up-dip black oil to down-dip dry gas,
dataset that allows new basins to bypass
requiring tailored development plans for each
a decade of trial and error”
Fidel Juárez Mexico Country Manager and Team Lead, Reservoir Engineerin | Sproule ERCE
fluid window.
Operational Lessons in Well Design and Spacing Historical performance data reveals key
intensity, and controlled well spacing lower
operational shifts that defined the maturity
production breakevens to US$42/b, offering
of the Eagle Ford play. Over the past decade
a structured playbook for developing
and a half, operators doubled effective
domestic basins such as Burgos and Sabinas.
lateral lengths from 4,000 feet to 10,000ft, spreading fixed drilling costs over expanded
Mexico stands at a strategic crossroads as the nation seeks to reduce its reliance on imported natural gas and strengthen domestic energy security. To unlock its substantial shale potential in northern regions such as the Burgos and Sabinas basins, Mexican energy authorities are reevaluating technical and financial frameworks for unconventional resource development. Fidel Juárez, Mexico Country Manager and Reservoir Engineering Team Lead at Sproule ERCE, outlined at the Mexico Oil and Gas Summit 2026 how 15 years of operational history from the South Texas Eagle Ford play
reservoir contact.
23
Simultaneously, proppant intensity tripled
Under benchmark pricing assumptions of
from 785lb/ft to a plateau of 2,250–2,470lb/
US3.00/Mcf Henry Hub, the single-well model
ft. However, per-foot productivity flattened
yields a gross estimated ultimate recovery of
around 100boe per 1,000ft, indicating that
1.844Mboe. It generates a net present value
increased completion intensity eventually
at a 10% discount rate of US41.77/b.
yields diminishing returns per foot of rock. Liquid hydrocarbons drive overall project Well spacing represented another crucial
economics despite representing a smaller
learning curve. Between 2015–2016, operators
fraction of physical output. In the wet gas
pushed well density from 2.4 wells per section
model, oil and condensate account for 17.7%
to a peak of 9.5 wells per section, tightening
of sales volume but generate 43% of total
inter-well distances to 560 feet.
gross revenue.
This aggressive downspacing triggered
Natural gas liquids contribute 26% of gross
severe parent-child interference, where
revenue, while natural gas accounts for 31%.
younger child wells suffered pressure
Juárez says that mapping thermal maturity
depletion and lower recovery rates from
fairways before setting economic targets is
nearby parent wells. Industry operators
essential, as high-value liquids significantly
subsequently pulled back, establishing an
enhance project cash flows.
optimal density of eight wells per section at an average spacing of 750ft. Juárez says that
Total discounted revenues of US6.23 million,
section co-development must be prioritized
while severance taxes deliver US$1.16 million
over late infill drilling to prevent reservoir
to fiscal authorities, exceeding the net
interference.
present value retained by the operator.
Single-Well Economics and Revenue Dynamics
A Stage-Gated Roadmap for Mexican Field Development
To demonstrate commercial viability, Sproule
To successfully replicate these outcomes,
ERCE evaluated a representative 75-well
Sproule ERCE recommends a structured,
sample within the wet gas window. The
stage-gated development strategy for Mexico
modeled single well features a 10,640ft
rather than rushing from isolated successful
lateral, a true vertical depth of 8,053ft, and
wells into full-field expansion.
a total drilling, completion, and tie-in cost of US$7.7 million.
During the short term, covering the first 12 months, operators and regulators should
24
reprocess subsurface data, map fluid
infrastructure and maintaining a continuous
windows, and shortlist initial pilot areas in the
drilling cadence. Because shale production
Burgos basin. In the medium term, spanning
exhibits steep initial decline rates, sustaining
1–3 years, targeted appraisal programs must
regional volume requires an active drilling
test lateral lengths, completion designs, and
pipeline rather than a single capital injection.
inter-well spacing while developing local supply chains and water recycling systems.
Juárez says that adhering to stage-gate technical criteria at each milestone will
Long-term commercial scaling after three
ensure long-term capital efficiency and de-
years requires establishing midstream
risk Mexico’s unconventional energy future.
CAPITAL, LIQUIDITY, DE-RISKING FOR PROJECT BANKABILITY Securing capital for energy infrastructure
industry leaders emphasize that bankability
in Mexico requires structured supply chain
for both public and private projects hinges on
finance and legal de-risking under the
innovative supply chain financing, transparent
regulatory framework of SENER and the CNE.
mixed-investment contracts, and rigorous
With supplier backlogs exceeding US$20
ESG compliance.
billion, financial tools like factoring, payment
Evaluating project bankability under
trusts, and clear mixed-contract governance
Mexico’s evolving energy framework
are essential to maintaining contractor
requires lenders to move beyond traditional
liquidity. These mechanisms directly impact
off-taker credit profiles toward structured
financial institutions, energy developers,
risk-allocation mechanisms. Commercial
oilfield service providers, and institutional
lenders and development banks require
investors operating across Mexico’s energy
defined contractual guarantees within mixed-
value chain.
investment structures, where clear rules governing default remedies, administrative
Securing long-term capital and protecting
functions, and dispute resolution are
co n t ra c to r l i q u i d i t y a c ro ss M ex i co ’s
essential to establishing investor trust.
evolving energy sector requires structured
Gleb Kouznetsov, Energy Finance Director,
financial engineering, clear risk allocation,
Bancomext, points out that structural shifts
and regulatory predictability. As market
in state energy policy, specifically increased
part icipan t s adapt to th e n ew l e g a l
domestic refining capacity that reduced
frameworks established under SENER and
crude export volumes and delayed supplier
the National Energy Commission (CNE),
payment cycles, have altered investor
25
appetite, forcing financial institutions to
accounting for 13% to 15% of the total oilfield
look beyond traditional state balance-sheet
services sector, which faced unpaid supplier
guarantees.
backlogs exceeding MX28 billion from 2024 alone. “When there are contractual defaults
Achieving national energy ambitions hinges
or delayed payments from the main state
on bridging the gap between commercial
operator, service companies are forced
banking and field execution, as public
to seek high-cost emergency financing,
funding alone cannot cover necessary capital
equipment leasing, and debt assignments
expenditures. “The updated Hydrocarbon
just to survive,” explains Espino, calling
Sector Law provided long-term stability
for structural solutions that go beyond
that will enable project financing, because it
temporary factoring to restore liquidity.
set a linear production target of 1.8 MMb/d until 2039,” states Rafael Espino, President,
Extended payment cycles continue to exert
AMESPAC. He notes that while PEMEX’s
severe financial pressure across energy
investment budget saw an MX$8 billion
supply chains, threatening the operational
(US$442.2 million) increase, federal financial
stability of service providers and Tier 1 and
support was reduced by over 70%, making
Tier 2 vendors. In the oil and gas subsector,
private debt syndication essential to hitting
the Association of Mexican Oilfield Service
national liquid and gas production targets.
Companies (AMESPAC) reports that PEMEX’s unpaid supplier backlogs, exceeding US$20
According to Estela Campuzano, Legal and
billion, alongside administrative processing
Regulatory Compliance Director at Energía
bottlenecks in invoicing systems like
Regional, project bankability rests on six
COPADE, directly constrain field execution
fundamental pillars: explicit risk allocation,
and maintenance.
mandatory ESG integration, predictable cash flows, matching contractual terms, regulatory
Risk transparency remains the central hurdle
stability, and permit enforcement. “Mexico’s
for commercial institutions evaluating
updated Hydrocarbon Sector Law will be
Mexican energy infrastructure. “If we do not
key to attracting investment, providing a
know which risk each party will assume, we
15-year horizon of visibility across the value chain,” Campuzano points out. However, she cautions that specific regulatory bottlenecks, such as Article 93 of the Hydrocarbon Sector Regulations limiting commercialization permits to non-renewable 2-year terms, create entry barriers for off-takers attempting to secure long-term project financing.
Preserving Supply Chain Liquidity and Contractor Working Capital Extended payment cycles continue to exert severe financial pressure across energy supply chains, threatening the operational stability of service providers and Tier 1 and Tier 2 vendors. Extended backlog processing in administrative invoicing systems like COPADE directly constrains field execution and routine maintenance across core basins. To illustrate the scale of this pressure, AMESPAC represents 60 member companies
26
do not have the confidence we need to invest
Diversifying payment sources away from
in a hydrocarbon project,” emphasizes Omar
single-source state treasuries is critical to
Castillo, Senior Vice President GTB CIB, BBVA.
unlocking private capital. “The main challenge
To navigate these constraints, commercial
in financing mixed-investment projects
banks are structuring off-balance-sheet
is establishing third-party commercial
inventory financing with trading partners,
off-takers or private trade intermediaries
contract monetization, and trust structures
to diversify payment sources,” explains
to maintain healthy cash flows without
Kouznetsov. To help mid-sized service
overburdening contractor debt covenants.
providers survive extended state payment cycles, development banks are structuring
Legal Governance and Contractual Certainty in Mixed-Investment Models
flexible credit solutions, such as capped revolving credit lines, custom amortization schedules, and cross-guarantees backed
Ensuring long-term creditworthiness in mixed-
by healthier corporate affiliates rather than
investment hydrocarbon models requires
relying solely on PEMEX receivables.
robust corporate governance, transparent off-taker agreements, and unambiguous contractual design. Navigating regulatory
ESG Compliance, Social Impact, and the Cost of Capital
oversight under the CNE demands explicit legal safeguards to minimize administrative
E S G st a n d a rd s , m e t h a n e a b a te m e n t
discretion and protect investor confidence.
programs, and Social Impact Assessments (MIS) directly impact capital costs and loan
Building institutional investor trust requires
syndication access. Commercial banks and
legal frameworks that clearly separate state
international financial institutions increasingly
allocation rights from private economic
treat ESG compliance as a non-negotiable
rights so contractual rights can be assigned
prerequisite for debt closure.
as collateral for debt financing. “Mexico’s oil sector requires risk-sharing, ESG compliance,
Lenders increasingly view sustainability
transparent revenue streams, amortization-
as a direct proxy for financial health. “ESG
compatible contracts, and regulatory
compliance is no longer just a voluntary
certainty,” asserts Campuzano, stressing
commitment or a marketing tool; it directly
that robust governance must incorporate
determines project bankability and loan
international arbitration standards, creditor
pricing,” Castillo stresses, noting that energy
step-in rights, and strong operational
projects failing to satisfy environmental
committees capable of adjusting capital
baselines or social impact requirements
expenditures dynamically.
face higher credit risk premiums, whereas compliant operators gain access to broader
27
international capital pools at competitive
shared risk-taking will allow Mexico to protect
interest margins.
its supply chain liquidity, lower its overall cost of capital, and achieve long-term energy
Arturo Medellín, Partner, McKinsey &
security. “Market momentum will come
Company, stressed that while regulatory
down to three fundamental things: absolute
frameworks and financial structures have
clarity on project goals, satisfactory risk
evolved, market acceleration ultimately
management with fair risk allocation among
depends on operational execution. Aligning
all parties, and a contractual execution that
commercial banks, development institutions,
proves agreements are honored under this
operators, and service providers around
administration,” Medellín concluded.
OPERATOR UPSTREAM OUTLOOK:VALUE CREATION AND EXECUTION EXCELLENCE Private upstream operators at Mexico Oil
same factors will decide whether Mexico
and Gas Summit 2026 identified payment
can attract the capital needed to develop its
certainty, equipment availability, and contract
natural gas resources.
design as the main factors behind on-time, on-budget execution in Mexico. Executives
“Within the Mexican oil sector, it is crucial
from Consorcio Petrolero 5M del Golfo,
to guarantee suppliers that they will be paid
Hokchi Energy, Mexico Petroleum Company,
on time and have sufficient commercial
and Harbour Energy described strategies
substance to actually lower costs,” says
ranging from contingency planning and
Oscar Roldán, Director, Consorcio Petrolero
phased development to trust-based project
5M del Golfo.
financing. They also argued that Mexico needs gas-specific contracts, price signals,
Roldán says the current environment makes
and regulatory stability to attract capital
it difficult to keep projects on time and on
and reduce its dependence on US natural
budget, largely because of the payment
gas imports.
difficulties many suppliers face with PEMEX. Workover rigs, drilling rigs, and fracturing
Paying contractors on time has become
equipment are scarce onshore, and one or
one of the clearest competitive advantages
two isolated fracturing jobs cost far more
for private operators in Mexico’s upstream
than a sustained campaign. He adds that
sector. At Mexico Oil and Gas Summit 2026,
the traditional “PEMEX price” once meant
executives said payment certainty, equipment
the best rate in the market. Today, he says,
availability, and contract design now largely
it often carries an implicit financing charge
determine whether projects stay on schedule
that operators who pay on time should not
and within budget. They added that these
have to absorb.
28
The pressure on the supply chain remains
emphasizes planning with partners before
significant. By mid-2026, the oilfield services
execution begins. Harbour is pursuing
association AMESPAC estimated MX$528
synergies between its Zama and Polok
billion in recorded supplier payables and work
developments and favors phased execution
estimates not yet formalized, while PEMEX
over attempting everything at once. “Planning
had deployed only 38% of its approved
pays off. It is worth spending a lot of time on
annual investment budget, according to MBN.
planning,” he says.
Execution Under Uncertainty
Supply Chain and Social License
Hokchi Energy treats delays as a planning
Equipment availability is the most critical
problem rather than an excuse. “Whether or
constraint onshore, says Roldán. Some large
not PEMEX pays or our contractors deliver,
service providers have moved equipment
our duty is to complete our contractual
and personnel out of Mexico. He adds that
obligations on time and on budget,” says
operators need sufficient scale and payment
Vinicio Suro, Vice President, Hokchi Energy.
capacity to attract equipment in good
He says contracts built on certainty and trust,
condition. Suro says Hokchi Energy invests
with both penalty and incentive clauses, are
time and money to train and certify local
the main tool for meeting work programs.
contractors, and argues that the industry must
The company’s policy, he adds, is to delay
rebuild execution capacity lost as suppliers
work before it ever delays a payment to a
disappeared because of unpaid bills.
supplier, even when its own buyers pay late. Social and regulatory factors also cause External shocks are harder to plan for. León
delays. Roldán says taking over facilities
notes that S&P Global estimates trade
under Consorcio Petrolero 5M del Golfo’s
disruptions caused by armed conflicts added
mixed contracts, one in Altamira and two
about 6% to upstream cost inflation during
in Tabasco, required close coordination
2Q26 and 3Q26, driving up the price of steel
with PEMEX as co-owner. Those operations
and copper. Suro points to the exchange
now run 24 hours a day. Suro says securing
rate as an example: the peso moved below
pipeline rights of way requires overcoming
MX17perdollarandlateraboveMX18, and
community skepticism about whether
no forecaster anticipated either shift. In
operators will pay. De la Fuente adds that
such cases, he says, operators set aside a
poor coordination between federal, state,
contingency for extraordinary events and
and municipal authorities can delay capital
hope not to spend it.
deployment.
Alberto de la Fuente, SVP Commercial &
Competing for Global Capital
Deputy Country Manager, Harbour Energy,
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William Waggoner, CEO, Mexico Petroleum
but has not attracted the dozens of new
Company, says Mexico has world-class rock,
entrants the country needs. PEMEX currently
talent, and seismic data but lacks a contract
has 10 signed mixed contracts, which the
model that offers a reasonable return. He says
government expects to add about 39,500b/d
a comparative analysis he conducted of 14
of liquids and 102.6MMcf/d of gas by
countries found the US lease model to be
December 2026, reports El CEO.
the most effective. “Capital does not want risk. Capital wants certainty,” says Waggoner.
The Gas Question
Mexico Petroleum Company plans to bring Permian Basin fracking technology to northern
Mexico’s reliance on US gas remains a
Mexico, and Waggoner warns that the heavy
strategic risk. Waggoner estimates that
upfront investment fracking requires will not
Mexico depends on the US for 75% to 80%
come without contract reform.
of its gas. He says new pipelines connecting the Permian Basin to the Henry Hub could
Suro says investment decisions rely on
erode the discount Mexico currently enjoys
certified reserves and a defined minimum
at the Waha Hub, with a potential negative
rate of return. He adds that contracts should
impact of about US$50 billion. Suro says
protect operators from regulatory changes
the government’s hydrocarbon sector
that materially alter the economics on which
development plan identifies 21 mixed
a final investment decision was based. De la
contracts, many of them for non-associated
Fuente notes that capital is also flowing to
gas. The plan targets 1.8MMb/d of liquids
Argentina, Brazil, Guyana, and Namibia, and
and 5,000MMcf/d of natural gas, according
says legal certainty and simpler regulation
to Expansión.
would make Mexico more competitive. De la Fuente argues that gas projects Roldán offers a practical workaround. His
in Burgos and northern Mexico require
company secured bank financing through
a contract designed specifically for gas,
a payment trust with Banorte, a structure
which does not yet exist. Roldán adds that
similar to reserve-based lending that uses
producers also need price signals. “Without
cash flow from projects already producing
them, non-associated gas projects will be
more than 20,000 b/d as collateral. Suro
difficult to develop,” he says.
says the model works for certain companies
CONTRACTS MATTER-WONDERFULLY! Mexico Petroleum Company (MPC) has
the United States. MPC identifies the decline
proposed a new contractual framework for
of the Cantarell and Ku-Maloob-Zaap fields,
the development of Mexico’s unconventional
limited development of deepwater resources,
oil and gas resources, arguing that simpler,
and the underdevelopment of shale resources
more stable and transparent terms could
as key elements of the country’s upstream
attract private investment while preserving
challenge. He argues that the Tampico-
state ownership of oil resources. “Contracts
Misantla Basin, which it describes as a
are the main issue Mexico is facing,” said
geological analogue to the Permian Basin,
William Waggoner, CEO, MPC, at Mexico
contains significant recoverable shale gas
Oil & Gas Summit 2026. “If oil is in the
resources that remain largely undeveloped.
ground, it does not feed and it does not
MPC also attributes difficulties in the 2024–
benefit anybody.”
25 mixed contract regime to structural ambiguity, mandatory PEMEX participation
Mexico’s crude oil production has fallen to
without corresponding capital and a political
approximately 1.2MMb/d, compared with
risk premium associated with the 2019
a peak of 3.4MMb/d in 2004, while 70% of
moratorium.
the country’s natural gas is imported from
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remain with the state, but the contractual
Contract Simplicity as an Investment Driver
structure used to enable their development. “My only request is for professionals like me to
MPC’s central argument is that contractual
sit with the Senate to come up with solutions
simplicity, fiscal stability, and transparency
that benefit the country and generations to
are key to attracting upstream investment.
come,” he concluded.
“Good policy has no politics,” said Waggoner. He argues that contract simplicity drives participation because operators have greater clarity over their fiscal obligations. MPC recommends a Federal/PEMEX Hybrid Incentive Contract (HIC) as its preferred instrument for unconventional development in the Tampico-Misantla Basin. “Mexico needs a new contract or lease that resembles the old CEE licenses, and preference should be given to Mexican companies,” he said. MPC calls for immediate action in establishing a legislative framework for the new contracts. Waggoner concludes that Mexico’s unconventional resources could play a significant role in changing the country’s energy balance if they are developed. He argues that the central issue is not ownership of Mexico’s petroleum resources, which would
“My only request is for professionals like me to sit with the Senate to come up with solutions that benefit the country and generations to come”
William Waggoner CEO | Mexico Petroleum Company
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www.mexicobusiness.mx