Pemex, Petrobras Mull Partnership for Gulf of Mexico

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

The presidents of Mexico and Brazil have opened the door to a possible partnership between their state-owned oil and gas companies to focus on deepwater opportunities. A partnership could allow Pemex to tap Petrobras's strong deepwater and ultra-deepwater experience.

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It Starts With a Phone Call

Mexico President Claudia Sheinbaum said during a press conference on Tuesday that Brazil President Luiz Inacio Lula da Silva proposed, during a telephone call, a partnership between Mexico's Pemex and Brazil's Petrobras.

Sheinbaum provided no details or confirmation but left options open: "We haven't decided yet; the president of Petrobras is coming in April, and we will review the proposal."

A partnership could allow Pemex to draw on Petrobras' deep and ultradeep-water oil field expertise, where the Brazilian company has an extensive track record.

Pemex currently produces from onshore and shallow water fields, but venturing into deeper waters could open new frontiers amid years of declining oil output.

Under Sheinbaum, Pemex's production target has been set at 1.8 million barrels of oil per day (BBL/d), even as the company has struggled to reverse output declines over the last few years. Throughout 2025, the Mexican company produced 1.635 million BBL/d of oil.

In contrast, Petrobras has used its expertise to extract oil from pre-salt layers in the offshore Campos and Santos basins, where reservoirs lie at depths of 5,000-6,000 meters. This expertise has helped Petrobras increase production in the last decade, becoming South America's top hydrocarbon producer at 2.99 million barrels of oil equivalent (BOE/d) per day in 2025.

Ethanol Production

Ethanol production could be another area for cooperation, Sheinbaum said. Brazil is the world's leading producer of sugarcane ethanol and has also become a major corn-based ethanol producer.

Brazil uses ethanol as a standalone fuel and as a blend with gasoline.

Key Takeaways

• Lula suggests Pemex-Petrobras collaboration in the Gulf of Mexico.
• Sheinbaum signals openness, no firm commitment yet.
• Pemex stands to gain Petrobras's deepwater experience.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).