Petroleos Mexicanos, Latin America’s largest oil producer, expects to hire foreign oil companies for the first time to explore and produce in the Gulf of Mexico as it seeks to arrest a five-year decline in output.
Petroleos Mexicanos’s plans to scale back drilling by 60 percent next year at its $11 billion Chicontepec oil field will hurt Mexican oil services providers as they lose contracts to companies such as Halliburton Co. and Schlumberger Ltd., analysts said.
Senators from Mexico’s two biggest political parties proposed a bill to break the nation’s 75-year oil monopoly by amending the constitution to allow production sharing contracts and licenses for outside producers.
Repsol YPF SA Chairman Antonio Brufau moved to oust representatives of two of the biggest investors from the board after they formed an alliance aimed at curbing his power and changing the oil company’s strategy.
Petroleos Mexicanos, Latin America’s biggest oil producer, is preparing a pair of offshore contracts allowing companies such as Exxon Mobil Corp. and BP Plc to gain access to the Mexican side of the Gulf of Mexico.