What Happened: Mexican President-elect Andres Manuel Lopez Obrador announced a plan to inject $4 billion worth of capital into state-owned oil company Pemex, the Financial Times reported July 27.
Why It matters: An injection of capital into Pemex will help the company balance its budget, retain talent, compete with other international oil companies to develop blocks and raise investment in blocks it currently holds.
Background: Mexico's energy reform was designed to enable Pemex to be competitive with international oil companies that gained access to the country's oil reserves.
- What Will Lopez Obrador Do About Mexico's Corruption? (July 5, 2018)
- Big Oil Sees Untapped Potential in Mexico (Feb. 2, 2108)
- The Shifting Tides of Energy Reform in Mexico and Brazil (May 11, 2017)