Petrobras and Pemex partner for high-risk deepwater exploration

The oil and gas industry in Latin America is undergoing a period of transformation, characterized by shifting investments and high-risk exploration projects. Brazil and Mexico are emerging as central players in this evolution.

Petrobras and Pemex have partnered to explore prehistoric rock formations under the Gulf of Mexico. This project targets crude reserves trapped in rocks dating back 160 million years, significantly older than the formations utilized in U.S. Gulf wells. While the project offers the potential for vast reserves, it carries substantial physical, financial, and environmental risks due to the extreme depths and high-pressure conditions required for drilling.

In Brazil, Petrobras remains a primary driver of regional employment and investment. The company’s 2026-2030 business plan includes US$109 billion in investments, with US$69.2 billion dedicated to exploration and production. These projects are expected to support approximately 311,000 direct and indirect jobs over the next five years, particularly within the offshore deepwater and ultra-deepwater sectors.