(Bloomberg) — Mexican President Claudia Sheinbaum has tapped Juan Carlos Carpio to lead Pemex as the state oil company grapples with mounting debt, declining production and broader fiscal pressure.
The move follows the departure of Pemex CEO Víctor Rodríguez Padilla after less than two years in the role. Sheinbaum said the transition had been planned and still requires board approval.
Carpio, currently the company’s chief financial officer, will take over leadership of the world’s most indebted oil producer after a period marked by continued financial losses and falling output. Pemex production declined roughly 6% during Rodríguez’s tenure, reaching about 1.65 million bpd at the end of March.
Pemex reported a third consecutive quarterly loss earlier this month, while total debt stood at approximately $79 billion as of March 31.
“She is increasingly focused on fiscal discipline,” said Matias Gomez Leautaud, lead analyst for Mexico at Eurasia Group, describing the appointment as part of a broader effort by Sheinbaum to reassure financial markets and tighten control over economic policy.
Pemex bonds weakened following the leadership announcement, with bonds maturing in 2035 falling nearly one cent Friday.
During a news conference, Sheinbaum said Carpio was selected because of his familiarity with Pemex’s debt reduction efforts and the company’s ongoing restructuring and consolidation initiatives.
“He is the one who knows the most about the company’s consolidation process,” Sheinbaum said, adding that the new CEO will continue efforts involving refinery operations, petrochemicals, fertilizers and logistics.
The leadership transition comes as Mexico’s government continues injecting financial support into Pemex. Sheinbaum has directed more than $40 billion toward the company during Rodríguez’s tenure to help address debt obligations, refinery challenges and payroll costs.
The administration has also pushed for increased private investment in aging oil and gas fields as part of efforts to stabilize domestic production and strengthen long-term energy security.
This week, S&P Global Ratings revised Mexico’s credit outlook to negative from stable, citing weak fiscal performance, rising debt and expected continued government support for Pemex.
Analysts said Carpio will face pressure to reduce debt while improving upstream production performance and advancing discussions involving potential partnerships with Petrobras.
“This doesn’t suggest a drastic change in the way Pemex is being run,” said Bradesco strategist Rodolfo Ramos.
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