Petrobras and Pemex Partner to Explore Deepwater Pre-Salt Oil Offshore Mexico

Latin America’s two largest oil producers, Petroleo Brasileiro SA (Petrobras) and Petroleos Mexicanos (Pemex), are joining forces to explore deeply buried Jurassic rocks offshore Mexico—a high-risk venture that could unlock massive crude reserves.

The partnership aims to evaluate a pre-salt play beneath the Gulf of Mexico, off the coast of Campeche state. This geological target is older, deeper, and potentially richer than existing fields, but drilling miles beneath the seabed through unstable, high-pressure salt formations presents immense technical and financial challenges.

Pemex previously explored this area in 2018, drilling over 7,800 meters (25,600 feet) below the seafloor. While that specific well was deemed unproductive, the data gathered has kept hope alive. Geologists suggest the findings did not contain any “play-killers” and instead provided reasons to continue testing.

Unlike younger formations on the U.S. side of the Gulf, the companies are targeting source rocks formed roughly 160 million years ago, where organic material originally transformed into petroleum. Teams from both companies are currently analyzing seismic and geological data to see if Petrobras can replicate its legendary domestic success.

Beginning in 2006, Petrobras transformed Brazil’s energy sector by unlocking massive pre-salt discoveries, such as the Tupi field, which has produced about 4 billion barrels of oil since 2010. However, replicating this success internationally has proven difficult, with similar pre-salt exploration efforts in Angola, Gabon, and the Republic of Congo failing to yield comparable results.

Industry experts note that Pemex lacks the capital and technology to tackle this play alone, making Petrobras’s expertise crucial. Under extreme underground temperatures and pressures, salt behaves like a liquid, demanding highly specialized drilling techniques. Furthermore, deepwater exploration wells of this nature can cost hundreds of millions of dollars.

Beyond the deep pre-salt zone, the companies also plan to explore beneath younger, shallower salt formations and deepwater sediment flows. While major operators like Chevron and Shell have long produced from sub-salt fields in the Gulf, the older pre-salt targets pursued by Petrobras and Pemex represent a far greater level of complexity.

If successful, a major discovery could revitalize Pemex as it struggles with declining production and heavy debt, while allowing Petrobras to successfully export its specialized offshore capabilities.