Mexico-Brazil oil deal raises concern for ecosystems and energy transition

Petrobras and Pemex announced a two-year memorandum of understanding on June 23 to cooperate on deepwater drilling and mature fields in the Gulf of Mexico, plus fertilizers, biofuels, and carbon capture. The actual document was not published; the public got a press release instead.

Environmental groups and energy researchers say the timing is awkward, coming after a Pemex well near Las Choapas leaked gas for nearly five months and a pipeline spill contaminated 580 miles of shoreline. Both companies face outside financial disclosure rules because of stock exchange listings, which is the only reason anyone expects to learn more, since neither government is volunteering details domestically.

Mexican President Claudia Sheinbaum downplayed the deal's significance the next morning, insisting Pemex would not lose control and that Petrobras, being state-owned, poses no threat to sovereignty. Researchers note that mature wells sit in shallow coastal waters prone to reaching shoreline habitats, while deepwater sites carry higher accident rates, so somebody is taking on more risk here even if nobody will say who.

The full dispatch is available from the source below.