1. Changes to Petróleos Mexicanos’ (Pemex) structure
On March 26th, 2019 in its Extraordinary Session 939, Pemex’s Board of Directors approved the merge of four of its Subsidiary Entities: Pemex Drilling and Services with Pemex Exploration and Production; and Pemex Ethylene with Pemex Industrial Transformation. The absorbed subsidiaries turned into sub-directions.
Related to this restructure, there was a reduction of work places that it is estimated it will allow to achieve MXN$549.2 million of annual savings:
- 153 work places of Pemex’s Corporate will be dispensed. It represents $266 million in savings per year.
- There was a reduction of 375 work places in Subsidiaries enterprises, equivalent to annual expenses of $282 million. The most significant savings will be obtained by eliminating positions of advisors, private secretaries and drivers.
The changes on the structure are aligned with the principles of austerity proposed by the current administration. The main objective is to eliminate excessive, superfluous and unproductive expenses and to free resources for supporting the sustainable development of Pemex.
Through these changes, it is intended to regroup functions that were considered repeated or dispersed, reduce the size of administrative areas, reassign functions that can be carried out by lower hierarchical levels and eliminate jobs that do not align with the new energy policy.
The following charts compare the previous structure of Pemex’s Corporate and Pemex’s Subsidiary Entities:
| PEMEX’S CORPORATE PREVIOUS STRUCTURE | PEMEX’S CORPORATE CURRENT STRUCTURE |
| Corporate Direction of Management and Services | Corporate Direction of Management and Services |
| Corporate Direction of Technologies of Information | |
| Corporate Direction of Finance | Corporate Direction of Finance |
| Corporate Direction of Alliances and New Businesses | |
| Corporate Direction of Planning, Coordinaton and Performance | Corporate Direction of Planning Coordination and Performance |
| Legal Direction | Legal Direction |
2. Appointment of Pemex´s
independent advisors
Today, the Senate ratified two of the three independent advisors proposed by President Andrés Manuel López Obrador for the Board of Directors of Pemex:
- José Eduardo Beltrán Hernández who was General Secretary of Tabasco, Federal Deputy and president of the Commission of Energetics of Deputies Chamber, and
- Juan José Paullada Figueroa who has served as Fiscal Attorney of the Federation and designed the fiscal strategy for the current administration.
The
proposal to appoint Edmundo Sánchez Aguilar did not reach the approval of 2/3
of Senators Chamber, as required by Pemex’s Law.
3. Odds and Ends
On April 4th, President Andrés Manuel
López Obrador announced the appointment of Luis Linares Zapata, Norma Leticia
Campos Aragón, Jorge Alberto Celestinos Isaacs and Guadalupe Escalante Benítez
to serve as commissioners of Energy Regulatory Commission (CRE). After these
appointments, the Governing Body of this Commission is complete with 7 members.
Muvoil Consulting is a group of specialists in the O&G sector: legal, fiscal, social and environmental. Our multidisciplinary approach allows us to design strategic solutions that can unravel the most complex regulatory and transactional challenges that a petroleum project can face. Do not hesitate to contact us for further details.
Layla Vargas
General Director