Mexico’s Sheinbaum will inherit major Pemex challenges

Significance

Pemex is one of several major public finance challenges that Sheinbaum's administration will inherit when she takes office on October 1. Without major changes in its operational strategy, it is unlikely to improve its financial performance.

Impacts

• Upcoming key appointments will include Pemex’s CFO and the head of the Exploration and Production subsidiary.
• The political context will ensure that new oil field tenders for private firms remain off the table, at least early in new administration.
• Judicial reform and the elimination of independent regulators would disincentivise foreign investment in Mexico’s hydrocarbons sector.