The board of directors for Mexico’s Petroleos Mexicanos (Pemex) approved a corporate restructuring plan that would see the company reorganize into two main units and five smaller subsidiaries. The national oil company said that the plan was an opportunity to increase the company’s efficiency and competitiveness.
Currently a standalone subsidiary, Pemex Exploration and Production will be absorbed by Pemex to become Exploration and Production, one of the two main business segments. Three of Pemex's downstream subsidiaries will unite to compose its new Industrial Transformation unit.
Pemex must submit business proposals for the new five subsidiaries – drilling, transportation and logistics, power co-generation, fertilizers, and ethylene – within 90 days. Pemex said they will move towards becoming full subsidiary companies over the next year.
As part of the restructure, some corporate functions including human resources, procurement, legal, finance, and planning will be centralized. Pemex General Director Emilio Lozoya said in a statement that the changes resulted from a rigorous analysis that redefined the company strategy and promoted the modernization of Pemex.
We will have a single Pemex, strengthened to face the challenges of the world’s energy revolution. The company’s transformation will continue in a permanent evolution, Lozoya said, noting that its current organization did not allow the company to take full advantage of transactions.
Pemex initially announced plans for the reorganization on 21 August, days after Mexican President Enrique Pena Nieto signed the country's historic energy reforms’ secondary legislature into law. At that time, Lozoya also announced that Pemex’s new tax regime that will reduce its fees by US$6.8 billion (MX$90 billion).
Photo from Pemex.