A company under the control of Mexico’s wealthiest individual, Carlos Slim, is investing $1.2 billion to develop a substantial field in the Gulf of Mexico.
The field, known as Lakach, is expected to commence gas production around 2026 and could serve as a model for collaboration between Mexico’s state oil company and private enterprises.
Partnership with Pemex
Slim’s Grupo Carso SAB has reached an agreement with Mexico’s state-owned Petroleos Mexicanos (Pemex) to explore and extract resources from the Lakach deepwater field, discovered in 2007 approximately 98 km (61 miles) southeast of Veracruz.
While Pemex will retain ownership of the field and its reserves, Grupo Carso will be responsible for constructing an inland facility for storing and processing the gas and condensates.
Shift in Energy Landscape
Under President Andres Manuel Lopez Obrador, whose term concludes in September, the Mexican government has reasserted state control over the energy industry. However, production and exploration have slowed due to reduced private investment.
Slim has demonstrated success in establishing partnerships with Pemex where others have struggled. Last year, Pemex terminated a similar agreement with New Fortress Energy Inc. to develop Lakach.
Presidential Endorsement
In December, Lopez Obrador praised a Carso agreement to acquire stakes in two oil fields, highlighting the benefit of keeping resources “in the hands of Mexicans” and expressing confidence in their investment for crude oil extraction.
President-elect Claudia Sheinbaum, Lopez Obrador’s successor, has indicated her willingness to collaborate with private investors in the energy sector while emphasizing that Mexico’s natural resources belong to its people.
Collaborative Development of Lakach
Carso will collaborate with Houston-based Talos Energy Inc. and a local unit of Spain’s Fomento de Construcciones y Contratas SA to develop the Lakach field. Slim holds ownership stakes in both of these companies.
While the majority of Slim’s $93.3 billion fortune originates from his telecommunications company, America Movil SAB, he has been actively investing in energy projects, such as the construction of offshore platforms, for over a decade.
Slim’s Vision for Mexico’s Energy Sector
Earlier this week, Slim stressed the importance of Mexico investing in energy to leverage trade tensions between China and the U.S. and attract more investment. At an event in Mexico commemorating the Day of the Engineer, he revealed that his companies also possess permits to produce geothermal energy, but the government has yet to authorize production.
Carso shares experienced a 2.8% decline to 127.86 pesos at the close in Mexico City before the Lakach plan was announced. The stock has dropped by 33% this year after more than doubling in 2023.