Moody's rates Mexico's energy environment as negative
In an analysis, the rating agency considered that there could be a benefit for local companies that provide ancillary services of oil and gas, as long as Pemex could increase its capital expenditure on exploration and production.
Mexico maintains an energy uncertainty mainly for three reasons: the cancellation of projects such as Pemex partnerships with private, a figure known as farmouts, loss of autonomy in decentralized agencies such as the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), and a "nationalist" vision towards Petroleos Mexicanos, which curbs the interest of investors.
This vision of the oil company could cause Pemex not to enter into new partnership projects with private (farmouts) in the future, thus damaging the company's profits and profitability in the coming years.
On the other hand, it referred to a positive outlook in Brazil, while in Colombia and Argentina it remains stable.
Regarding Brazil, the increase in productivity in pre-salt oil deposits and the stability of crude oil prices, which will support cash generation throughout the production chain, including oil refining, offer a positive view of the sector.
For Colombia, oil prices will remain stable until 2020, which will improve the operating results of oil companies, given the continued unification of production blocks and the fact of sharing infrastructure through associations.
Regarding Argentina, the fundamental aspects of the business will remain stable until the middle or end of 2020. This would be accompanied by an evolving regulatory environment, offset by investment opportunities related to unconventional oil projects, despite the slowdown in gas investment plans.