Mexico's NOC Pemex is one of the largest oil producers in the world, but years of political complacency have left the company with one of the weakest growth outlooks in the sector. The portfolio is rapidly maturing, and a lack of investment in exploration means the company has few greenfield growth opportunities. Furthermore, the fiscal regime under which the company operates does not work in a low oil price environment, forcing Pemex to increasingly turn to the debt markets. Comprehensive reform, however politically unpalatable, is required. The government needs to lower its take, enabling Pemex to kick-start spend in new development and exploration activity. A deepening of the company's partnering programme to draw in external capital and expertise is also important.