Recent News

$10 Billion Tula Refinery Plans Will Continue, According to Pemex CEO

Despite set backs regarding the projects proposed end date. Pemex (Mexican state oil) still plans to move forward with the $10 Billion Tula refinery project. Although the company had neglected to include the project in their five-year plan, CEO of Pemex Emilio Lozoya recently addressed the media regarding the situation.
Mexican state oil monopoly Pemex has not axed plans for a new $10 billion Tula refinery, the company’s chief executive said on Wednesday, despite having pushed back the project’s completion to an unspecified date.

The future of the new Tula Bicentenario refinery in the eastern state of Hidalgo has been the subject of debate since it was omitted from Pemex’s updated five-year business plan last month.

That led local media to suggest the long-touted project had been terminated, a charge Pemex denied but failed to bury, saying in a U.S. Securities and Exchange Commission earlier this month that it was “evaluating the nature and timing of this project.”

Speaking in the lower house of Congress on Wednesday, Pemex CEO Emilio Lozoya said the project was still going ahead. But he was not clear about when construction would end on a project announced to great fanfare in 2008.

“The new Tula refinery project remains part of Pemex’s business plan,” Lozoya said, noting that the current plan ratified the objectives of the former 2013-2017 scheme. Pemex has often said the new refinery would be completed by 2017.

However, Lozoya did not give a specific completion date. Instead, he noted that Pemex’s priorities had shifted to focus on the

Pemex Issues US $1 Billion In Bonds

Pemex will receive one billion US dollars in guarantees from the Export-Import Bank of the United States, which will support the services of Pemex and the export of US goods.

The amount will increase through an oversubscribed option. This will be exercised through a six year fixed rate bond.

The banks involved, managing the debt issue, are Scotiabank, Banamex, Bank of America, and BBVA Bancomer.

The placement consisted of a six-year fixed rate bond and a 12-year floating bond that were twice renewed, as well as the reissue of an 11-year bond. The bonds are part of the NOC’s current year financing program.

Capital market is an innovative and proven approach that helps to provide funding for PEMEX’s purchases of American goods and services at no extra cost to the US treasury. This strategy will provide and maintain American jobs and supports American exporters in large and small businesses inside the United States. This move is beneficial for both countries.

The transaction is assisting in financing exports to Pemex of American made oil and gas field drilling services, chemicals, drilling platforms, spare parts, safety equipment, and geophysical studies.

To finance the purchases of these exports, Pemex is issuing Ex-Im bank guaranteed bonds on capital markets. A firm that will benefit directly is Checkpoint Pumps & Systems, a small firm from Louisiana. The company is a single source for engineering, testing and field service, manufacturing. It has around thirty employees at their locations around the world and seventy employees at their facility in Mandeville.

Pemex To Restructure Operations With Five New Production Subsidiaries In Mexico

Pemex is restructuring their four operating units into five subsidiaries under two divisions. Pemex received approval from the Board of Directors and it is proceeding with the planned restructuring.

The new subsidiaries will focus on the following five items: logistics, services, fertilizers, ethylene and drilling. Pemex is combining their human resources, corporate functions, legal, planning, and finance departments into one central department.

These changes were made so Pemex could face the new challenges of the company’s innovative ventures and the energy revolution. These changes will allow Pemex to improve human capital and better serve the population.

The restructured company now has two operating units and five separate subsidiaries. The objective is to have a greater transparency and efficiency within the company.

Pemex has plans to capture vapor emitted during its processes to generate electricity and plans to investigate the ethylene business as a means to sell polymers. The drilling unit plans to lend drilling services as well, utilizing its competitive advantage.

The new structure does not require growth in payroll costs or the number of total jobs, Pemex has to produce tariffs, price structures and costs for commercial transactions between the company and their affiliates and subsidiaries within 120 days.

The restructuring scraps the previous divisions: exploration, refining, production, gas, petrochemicals and basic petrochemicals. These divisions have been replaced with just two: upstream and downstream; industrial transformation on one side and production and exploration in the other.

The five previously mentioned non core subsidiaries will become affiliate companies next year.

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Pemex Management Council Approves the Creation of the Procurement and Supply Corporate Management

Arturo Henriquez Autrey will be leading this new area.

The Board of Directors of Petróleos Mexicanos today approved the creation of the Corporate Procurement and Supply ( DCPA ), which centralize purchases related to goods, services and operating leases and public works of all Pemex, allowing better use purchasing power of the company to generate savings and develop standardized, streamlined, timely and transparent processes. This new instance will incorporate various areas that are currently part of both the Corporate Operations as the four subsidiaries of Pemex that purchase, so will not involve an increase in the workforce. Also, special meeting, the Board authorized the appointment of Arturo Henriquez Autrey as head of the new Corporate.

This change incorporates best international experiences of several companies that have moved towards centralization of supply and integration, with a focus on continuous improvement and innovation in leadership at the corporate level. Other companies have followed this model are IBM, Volkswagen, Volvo, Exxon Mobil, Statoil, Shel , Kraft Foods, Ecopetrol and Kuwait Petroleum.

This standardized scheme will be aimed at generating value, aligned to the strategic objectives of Pemex and a culture of assessment that speeds decision making and enables continuous improvement of the business model.

It will also boost competitiveness through the development of new hiring and boost productive partnership with suppliers and contractors holistically. With the new model, the DCPA conduct market research, integrated requirements and then execute the recruitment process at the request of users, unlike the previous model in which each area was responsible for

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