Pemex kicks off ‘restructuring’

Pemex headquarters, Mexico

Pemex headquarters, Mexico

21 August 2014, News Wires – Pemex has begun a corporate restructuring following the approval earlier this month of a historic energy overhaul that ended the state oil company’s decades-long monopoly.

The Mexican player will keep intact its highly profitable exploration and production unit while it consolidates poorer-performing divisions focused on natural gas, refining and petrochemicals into a single unit that will be known as Industrial Transformation, the company said according to a Reuters report.

The company will also establish three subsidiaries below the two units.

One subsidiary will offer drilling services to new private and foreign entrants into the market, another will offer logistical and transportation services and a third will focus on electric power generation.

Company executives have said the new structure will boost Pemex’s flexibility and efficiency.

The statement added that the company’s new board of directors, which will include more independent members and eliminate union-held seats, will be set by October.

Beginning early next year, Pemex will ink its first-ever joint ventures with oil companies covering 10 blocks offering a geological mix of oil and gas fields both onshore and offshore.

Pemex estimates that the partnerships are expected to generate investment of about $32.3 billion.


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