Pemex Eyes New Production Chief Amid Mounting Output Challenges
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Pemex Eyes New Production Chief Amid Mounting Output Challenges Charles Kennedy Thu, December 18, 2025 at 2:38 PM PST 2 min read PEP -0.81% Mexico’s state oil company Pemex is preparing to replace the head of its exploration and production unit just months after his return to the role, as the company struggles to halt a steady decline in crude output, sources familiar with the matter told Reuters.
Angel Cid Munguía resumed leadership of Pemex Exploration and Production (PEP) in early May, having previously held the post until the end of former President Andrés Manuel López Obrador’s term. His potential departure would mark the third leadership change at PEP since President Claudia Sheinbaum took office last October. Two sources said Cid is expected to be succeeded by Octavio Barrera Torres, an electronics engineer who was appointed in May as deputy director of design, engineering, and project execution at PEP as part of a broader restructuring. One source said the leadership change reflects dissatisfaction with Cid’s failure to deliver promised production gains. The shake-up comes as Sheinbaum has pledged to maintain national oil output at an average of 1.8 million barrels per day through 2030, a target that analysts increasingly see as challenging. Pemex continues to face declining output from mature fields, limited new discoveries, and slow progress on major offshore projects such as Zama and Trion, which are being developed with partners. The possible departure also follows the rollout of Pemex’s new “mixed contracts” scheme, designed to attract private investment into upstream projects. However, the program has so far drawn limited interest, constrained by Pemex’s heavy debt burden. Oilprice.com reported this week that Pemex has awarded five of the 11 mixed contracts planned for this year, deals it estimates could add nearly 70,000 bpd to current production of about 1.6 million bpd, including partners. Pemex remains heavily reliant on government support. Between January and September, it received roughly 380 billion pesos ($21.1 billion) in capital injections and tax relief, more than double the support provided in the same period last year. Despite this, the company continues to carry more than $100 billion in financial debt. Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else. You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.
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