Mexican Billionaire Carlos Slim Reevaluates Deepwater Gas Field Deal with Pemex

Mexico City, Mexico - Mexican billionaire investor Carlos Slim announced on Monday that his team is reconsidering a contract with state oil company Pemex to develop Mexico's first deepwater natural gas field, known as Lakach. The project has faced challenges related to commercial viability, particularly in light of lower gas price forecasts.

Slim's comments corroborate an exclusive Reuters report from last month, which revealed discussions between representatives of Slim's Grupo Carso and Pemex to modify the agreement and enhance project profitability.

"This is a complex project that requires exceptional technical expertise," stated Slim at a Mexico City press conference. He emphasized the significant depth at which the gas reserves are located in the Gulf of Mexico, further complicating development.

Slim remained noncommittal when questioned about his continued interest in the field. "The decision will depend on the scope of the final project," he said.

Pemex has previously abandoned the Lakach project twice due to exorbitant development costs. Slim also highlighted the necessity for increased infrastructure investment and Mexico's reliance on gas imports from the United States.

According to Reuters, Grupo Carso is exploring the potential of incorporating adjacent fields, Piklis and Kunah, into the venture to enhance its economic feasibility. The company is also considering pausing the project indefinitely.

Slim's portfolio has expanded in the energy sector in recent years, with investments in shallow-water fields such as Zama, Ichalkil, and Pokoch. Last year, his team engaged with Pemex executives regarding Lakach.

Lakach, located approximately 90 kilometers from Veracruz on the Gulf, possesses an estimated 900 billion cubic feet of gas. However, low reservoir pressure poses production challenges, requiring substantial investment. The current low gas prices further complicate the project's viability.

Source:

* [Reuters](https://www.reuters.com/business/energy/exclusive-mexican-billionaire-slim-weighs-options-deepwater-gas-project-2023-03-13/)