Mexican tycoon bets on natural gas, signs $2 billion contract

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Grupo Carso, owned by Mexico's richest man Carlos Slim, has signed a $1.99 billion service contract with Mexico's state oil company Pemex to drill 32 wells in the country’s gas-rich Ixachi field in Veracruz state over the next three years. This marks a further expansion of Slim’s investments in the Mexican energy sector.

The Ixachi field is one of Mexico's most important onshore oil and gas reserves, currently producing about 93,000 barrels of oil and 715 million cubic feet of natural gas per day, equivalent to approximately 236,000 barrels of oil equivalent. According to the terms of the contract, starting from 2027, Pemex will pay Carso fees from the oil and gas sales revenue generated by the project.

Carso will carry out drilling operations through its subsidiaries GSM Bronco SA and MX Dlta NRG 1 SA. According to the plan, by the time Pemex starts payments in 2027, 12 out of the 32 wells are expected to be in production. If the actual number of wells drilled is less than stipulated in the contract, the final contract amount may be reduced accordingly.

Slim has previously invested over $2 billion in Pemex-related projects and has publicly called for more private sector involvement to rescue the state-owned enterprise, which has over $100 billion in debt.

In recent years, Slim has steadily expanded his footprint in Mexico’s energy sector. In addition to the Ixachi project, he has participated in several other Pemex-related projects, including Zama, Quesqui, and the large deepwater oilfield Lakach, with total investments now exceeding $2 billion.

At a recent national engineering forum, Slim emphasized the crucial role of private sector participation in Pemex’s survival. He warned that continued payment delays, rising debt, and declining output are driving away investors, and called for “solutions to be found to strengthen Pemex’s position.”

This cooperation highlights the importance of private capital for debt-ridden Pemex.

Pemex currently carries over $100 billion in debt, with oil output at its lowest in 40 years. Although President Claudia Sheinbaum’s administration insists the company will achieve financial self-sufficiency by 2027, Pemex still relies on issuing new debt to cover short-term obligations.

Mexico’s overall oil industry faces declining proven reserves, rig numbers, and output. Although the commissioning of the Dos Bocas refinery has expanded refining capacity, the plant’s current operating level remains below designed capacity after being shut down over pollution concerns.

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