Norway's sovereign wealth fund, valued at $1.8 trillion and the largest in the world, announced on Sunday that it has divested all its fixed-income investments in Mexico's state-owned oil company, Petróleos Mexicanos (Pemex). The fund cited concerns over a lack of transparency regarding corruption as the primary reason for this decision.
The Council on Ethics, which oversees the fund's ethical standards, stated, "Investigations have indicated that Pemex may be associated with numerous allegations or suspicions of corruption in Mexico from 2004 to 2023."
"The Council emphasizes the seriousness of allegations that numerous company employees, including a former senior executive, are said to have accepted bribes on multiple occasions," it stated. The watchdog's report references investigations like the Odebrecht scandal and the imprisonment of former Pemex CEO Emilio Lozoya for the fraudulent sale of a fertilizer plant in Veracruz, along with other notable Pemex corruption cases from the last two decades.
Norway’s Wealth Fund functions according to guidelines established by the Norwegian parliament and is recognized as a leader in environmental, social, and governance (ESG) practices. As of last June, the fund held approximately $138 million in Pemex securities.
The report indicated that there is a lack of "sufficient information, particularly regarding acts of corruption in 2017, as reported in the media." Furthermore, it revealed allegations of favoritism towards specific suppliers and instances of bribery from other companies in return for help with contracting processes. Several former Pemex employees were named in these allegations, and multiple cases have led to legal settlements in the United States.
On Monday, Pemex addressed the council, stating that it had promptly responded to the wealth fund's requests for information. Despite this, the watchdog maintained its recommendation to withdraw investments. While the watchdog acknowledged that Pemex has an anti-corruption system, it noted that the company provided limited information on the practical implementation of this system.
Can Pemex succeed with its new leadership?
Pemex's current debt is approximately $100 billion. The previous administration under López Obrador committed to providing economic support to ease this financial strain, a commitment that President Claudia Sheinbaum's administration has upheld.
In October, VÃctor RodrÃguez Padilla was named the new CEO of Pemex, marking the beginning of a new chapter for the company. An internal document from Pemex at that time outlined plans to create new business models aimed at attracting investment during Sheinbaum’s administration from 2024 to 2030, as well as to increase deepwater oil exploration. However, in the first quarter of 2025, Pemex reported a net loss of 43.3 billion pesos (approximately US $2.2 billion) and a decline in oil production.
