Mexico’s Top Billionaire Carlos Slim Invests $1.2 Billion in Gulf of Mexico Gas Field

Carlos Slim’s company, Grupo Carso SAB, is investing $1.2 billion to develop a gas field in the Gulf of Mexico, expected to begin production around 2026. This venture showcases a model for collaboration between Mexico’s state oil company, Petroleos Mexicanos (Pemex), and private enterprises.

The agreement between Grupo Carso and Pemex involves exploring and extracting gas from the Lakach field, a deepwater site discovered in 2007, located approximately 98 km southeast of Veracruz. Pemex will retain ownership of the field and its reserves, while Grupo Carso will construct an inland facility for storing and processing the gas and condensates.

Carso shares fell by 2.8% in Mexico City prior to the announcement of the Lakach plan. The stock has decreased by 33% this year after experiencing more than a doubling in value in 2023.

Under the administration of President Andres Manuel Lopez Obrador, the Mexican government has reinforced state control over the energy sector. However, this has led to reduced private investment, slowing down production and exploration. Despite these challenges, Slim has managed to establish effective partnerships with Pemex, where other companies have struggled. In contrast, Pemex canceled a similar development agreement with New Fortress Energy Inc. last year.

President Lopez Obrador commended Grupo Carso’s agreement to acquire stakes in two oil fields, emphasizing that the resources remained under Mexican control and expressing confidence in the company’s commitment to crude extraction. President-elect Claudia Sheinbaum has indicated her intention to collaborate with private investors in the energy sector while maintaining that Mexico’s natural resources belong to its people.

To develop the Lakach field, Grupo Carso will collaborate with Houston-based Talos Energy Inc. and a local unit of Spain’s Fomento de Construcciones y Contratas SA, both of which are partially owned by Slim. While Slim’s fortune, estimated at $93.3 billion, primarily stems from his telecommunications company America Movil SAB, he has been investing in energy projects, including offshore platforms, for over a decade.

Recently, Slim highlighted the necessity for Mexico to invest in energy to capitalize on trade tensions between China and the U.S., thereby attracting more investment. Speaking at an event commemorating the Day of the Engineer in Mexico, he mentioned that his companies hold permits for geothermal energy production, though government approval for production is still pending.

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