Mexico’s state-owned oil company is taking deepwater development off its plate for now.
Driven to rip $5.5 billion out of its budget this year to cope with a lengthening market downturn, it makes sense that Petroleos Mexicanos would look first to its riskiest and most expensive operations. The company reported its 13th quarterly loss on Monday, bringing its total losses for 2015 to $32 billion.
By delaying offshore development, Pemex joins major producers around the world in canceling or postponing their most expensive projects until prices rebound. But for Pemex, which has seen its production decline for 11 straight years and faces another 5 percent drop this year, it could be an especially perilous strategy.
Brazil Energy Insight 
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