Mexico's president Claudia Sheinbaum said today that US president Donald Trump had proposed a greater US role in Mexico's oil sector and higher Mexican purchases of US natural gas, but denied that either proposal was a condition for a trade agreement.
Trump had offered to help increase Mexico's crude production during their telephone conversations, Sheinbaum said during her daily press conference. She said she had explained that any participation in the sector must comply with Mexican law.
The comments follow a 9 October Financial Times report that Trump pressed Mexico for closer energy ties during a 16 September call, raised the possibility of selling Mexican assets to the US and discussed an arrangement modeled on South Korea's commitment to buy $100bn in US energy products.
Asked whether Trump sought access to state-owned Pemex's assets in exchange for a trade agreement, Sheinbaum said that was not the case.
Sheinbaum said US companies could participate in Mexico's oil sector through contracts permitted under Mexican law, citing oilfield services company Halliburton's longstanding work with Pemex.
Sheinbaum also confirmed that Trump had proposed increasing Mexico's purchases of US natural gas. Mexico has five new combined-cycle power plants that require gas, she said, while her administration also intends to expand domestic production.
Natural gas imports supply around 75pc of Mexico's consumption. Sheinbaum's administration aims to reduce that dependence to 50pc through higher domestic production and greater use of renewable energy.
The two countries are negotiating trade issues ahead of the US-Mexico-Canada (USMCA) free trade agreement review. Sheinbaum announced no new oil investment agreements or additional gas purchase commitments.
