Mexico's Pemex and Brazil's Petrobras have signed a memorandum of understanding to jointly explore deepwater and ultra-deepwater prospects in the Gulf of Mexico, targeting Jurassic source rocks beneath the Campeche salt layer. The partnership aims to leverage Petrobras' two decades of pre-salt drilling experience to unlock resources that could reverse Pemex's declining output, which averaged 1.66 million barrels per day in the second quarter, below the government's 1.8 million target. Pemex's 2018 exploratory well reached over 7,800 meters below the sea floor but was declared unproductive, yet analysts say the company likely saw enough potential to keep testing. A successful campaign could open a major new oil and gas province and ease Pemex's heavy debt burden, which contributed to a 70% drop in second-quarter net profit.
Petroleo Brasileiro Petrobras SA ADRPartnership with Petrobras to leverage deepwater expertise could unlock new reserves and reverse output decline.
