Mexico’s offshore oil investment set to plunge despite government pledges

OILPRICE | Investment in Mexico’s offshore oil sector is set to plunge by 21 percent between 2020 and 2025 compared to previous expectations, as the price crash and the financial issues of state oil firm Pemex will stall some projects, despite the government pledge to turn around the declining Mexican oil production, IHS Markit said in an analysis on Friday. With oil prices crashing and international oil companies reassessing offshore oil spending and planned exploration projects, and with Pemex struggling with local supply chain contractors, capital expenditure (capex) for new offshore projects is expected down by a cumulative US$4.6 billion in the 2020-2025 period, compared to previous estimates, IHS Markit said.


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