PEMEX presents business plan to presidential candidates

PEMEX CEO Carlos Treviño stated the oil company is ready to work with whomever triumphs on election day
PEMEX presents business plan to presidential candidates
PEMEX Executive Tower - Photo: Carlos Mejía/ Agencia EL UNIVERSAL CMR
07/06/2018
14:49
Noé Cruz Serrano
Mexico City
-A +A

Leer en español

State-owned oil company Petróleos Mexicanos (PEMEX) and its employees will work with any administration, with the one who wins the elections because it will become the majority shareholder of the company which belongs to us all Mexicans; that's how it's been defined in the Constitution, according to CEO Carlos Alberto Treviño Medina.

During an interview with EL UNIVERSAL, due to the company's 80th anniversary, Treviño claims that “it's valid that whoever is elected checks all the legal and technical matters of what we've done, and all the decisions we've made, and the first to raise his hand to have everything reviewed is the CEO of PEMEX.”

In his offices at the PEMEX Executive Tower, the CEO says that once the Board of Directors approves the Business Plan 2018-2022, they will forward it to the Presidential candidates before July 1, “so they can check it and [the winner] can implement it or even improve it.”

Treviño states the new business plan aims to turn PEMEX into a profitable company, with positive flows so it can lower its indebtedness in a couple of years.

Among the items included in the Business Plan is the debate on whether to revamp refineries or building one or two more.

“What I would say to the upcoming administration would be to increase the capacity of our refineries through marginal investments, that is, with injections of USD$ 4,000 or USD$ 6,000 billion we can bring up their production by 50, 60, or 100 thousand barrels, depending on the complex, instead of [building] a new 12-billion-refinery.”

pemex_carlos_trevino_medina_61587728.jpg
(PEMEX CEO Carlos Alberto Treviño Medina Photo: Juan Carlos Reyes García/EL UNIVERSAL)

Backpedaling the energy reform
Regarding the risk of canceling the partnerships and farmouts PEMEX has thus far executed, Treviño acknowledges it can be done yet it will have a cost for both, the company and the country.

“Our partners have the right to reclaim a unilateral cancellation of what has already been signed, and this can cause a legal dispute that will involve several organizations, including international courts. Without a doubt they'd say 'hold on, I've already invested, I've got a schedule and this represents a damage'.”

For the CEO, this would have a vital impact on Mexican economy and the production of gas and oil in the country.

Solid decisions
During the interview, the public official – who was appointed last November 27, 2017 – confirmed PEMEX will work with whomever it has to work with. And the first contact will be allowing presidential candidates to review their Business Plan.

“I think all the partnerships agreed to thus far have been the right ones and they follow policies which generate value, or avoid losing value, because if we continue operating certain things the way we've always done, we'll continue losing a lot of money,” he states.

“Both in my administration and that of the former CEO, José Antonio González Anaya, we've sought competitive processes that some don't agree with but, overall, most people have come around and these have generated us a lot of value.”

The legacy
You can hardly explain the history of Mexico without PEMEX since the “black gold” became the basis of national economy and development, accounting for 40% of public income at a time.

Cantarell – the second most important oil field in the world – became the engine for Mexico's development for more than three decades. For its CEO, the wealth the oil industry gave to Mexico allowed it to fund public infrastructure works, such as highways, hospitals, schools, bridges, and more.

“PEMEX is schools, highways, airports, infrastructure,” he says, adding that the development Mexico had during the 70's was possible thanks to the resources provided by the oil industry.

oil_industry.jpg
(PEMEX offshore platforms - File photo/EL UNIVERSAL)

The future of PEMEX
Based on the assumption that PEMEX is part of the select group of large oil companies in the world, the CEO believes PEMEX has to consolidate its position.

“PEMEX is a key national, Latin American, and international player. It's a company worthy of being in the best forums, capable of proposing, giving opinions, and be at the forefront in many aspects.”

Currently, PEMEX is the eighth oil producer in the world, operating close to 7,000 oil wells, offshore and on land. Its income rises to MXN$ 1.4 billion a year and employs 112,000 workers.

It has operations across 258 offshore platforms as well as 16 fuel distribution ships and 91 maintenance vessels.

PEMEX has six refineries and one in the United States in partnership with Shell (Deer Park.) It operates three petrochemical compounds in Veracruz and nine gas processing centers.

The company manages a 40,000-km pipeline network for hydrocarbon transportation and has 74 storage facilities and over 1,500

am

INFORMACIÓN RELACIONADA

Mantente al día con el boletín de El Universal