Carlos Slim's Carso Group invests $1.2bn in Mexican gas field development

Carlos Slim, Mexico's wealthiest individual, through his conglomerate Grupo Carso SAB, is poised to inject $1.2bn into the development of the Lakach gas field situated in the Gulf of Mexico. This ambitious endeavour aims to commence gas production by 2026, potentially serving as a blueprint for collaborative ventures between Mexico's state-owned oil company, Petróleos Mexicanos (Pemex), and private enterprises.

The agreement between Grupo Carso and Pemex involves the exploration and extraction of gas from the Lakach deepwater field, discovered in 2007 about 98 kilometres southeast of Veracruz. Under the terms, Pemex will retain ownership of the field and its reserves, while Grupo Carso will construct an onshore facility for gas and condensate storage and processing.

President Andrés Manuel López Obrador's administration, known for its emphasis on state control in the energy sector, has seen a reduction in private investment despite the push for greater energy self-sufficiency. However, Slim has adeptly navigated this landscape, contrasting with others who have struggled. 

Last year, Pemex axed a similar deal with New Fortress Energy Inc.

In December, López Obrador praised Carso's acquisition of stakes in two oil fields as it keeps investments within Mexican hands.

Slim's collaborative approach resonates with incoming President Claudia Sheinbaum's stance on private energy investment, while upholding state stewardship of natural resources.

For the Lakach project, Grupo Carso has joined forces with Houston-based Talos Energy Inc. and a local unit of Spain's Fomento de Construcciones y Contratas SA (FCC), entities in which Slim holds interests. Despite his telecommunications empire, America Movil SAB, being the cornerstone of his $93.3bn fortune, Slim has maintained a steadfast commitment to energy investment, including offshore platforms, spanning over a decade.

His recent advocacy for enhanced energy investment highlights Mexico's potential amidst global trade tensions. At a commemorative event, Slim stressed the imperative of additional energy investments, citing regulatory hurdles in his geothermal energy projects.

Prior to the Lakach announcement, Carso's shares concluded trading down 2.8% at MXN127.86 ($7.14) in Mexico City. This decline follows a robust surge observed in 2023, with the stock down 33% year-to-date.

This accord marks Slim's second substantial hydrocarbon investment in less than a month, following Carso's acquisition of Grupo Bal's operations in two Gulf of Mexico oil platforms for approximately $530mn on June 21.

Moreover, since September 2023, Carso has held a stake in the Zama oil field through its subsidiary Zamajal, acquired from Talos Energy.

Slim's persistent investments underscore his expanding footprint in Mexico's energy sector, particularly in hydrocarbon exploration and extraction.

These initiatives not only bolster Carso's position in the national energy market but also contribute to advancing the infrastructure and technology necessary for efficient and safe resource exploitation in Mexico.