Pemex to create subsidiaries, name board by Oct

Thursday, August 21, 2014

Mexico's state oil firm Pemex has begun a corporate restructuring, which includes creating three new subsidiaries and naming a new board of directors by October, said its CEO.

Pemex will keep its profitable exploration and production unit (PEP), while consolidating its other divisions focused on natural gas, refining and petrochemicals into a single unit, Transformación Industrial, the company said in a statement.

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It will also launch three new subsidiaries. One subsidiary will offer drilling services to new private and foreign players in the market; another will focus on logical and transportation services and a third will focus on cogeneration in order to supply surplus power to the national grid, in coordination with the energy ministry (Sener) and state-owned power utility CFE.

The firm's new structure, following the country's landmark energy reforms, will guarantee its short and medium-term viability, CEO Emilio Lozoya Austin said during a presentation to employees in Mexico City.

The new structure will also boost the company's flexibility and efficiency, he added.

For his part, energy minister Pedro Joaquín Coldwell said that the energy reforms will transform Pemex from a decentralized public entity into a state-owned productive enterprise. The reform will grant the NOC new powers, as well as budgetary, operational and managerial autonomy.

The firm will have the freedom to choose projects and strategic partners according to its priorities, without requiring federal budgetary approval, he added.

BNamericas will host its second LatAm Oil & Gas Summit in Houston, Texas, on September 10-11. Click here to download the agenda.