Pemex business plan draws scepticism in Mexico

Significance

It has proven a disappointment, failing to explain how ambitious targets will be met, while confirming the reversal of the oil sector liberalisation enacted by the Pena Nieto administration, which had been showing some promising results.

Impacts

• The government cannot mount a massive rescue of Pemex without endangering its own finances.
• Any substantial drop in global oil prices could present an insurmountable obstacle for Pemex, and a significant blow to public finances.
• A downgrade of Pemex’s debt could push rating agencies to do the same with the bonds of the federal government.