PEMEX is getting ready to conclude the six-year period with 61% fewer subsidiaries

Mexico.- Petróleos Mexicanos (PEMEX) will conclude the six-year period with 37 subsidiary companies, this is 61% less than the 95 that existed when the current administration began and is the result of the reengineering program carried out by the company, as reported by Octavio Romero Oropeza, general director.

"We must remember that at the beginning of this administration we had 95 subsidiary companies in Petróleos Mexicanos, of all types, we have concluded a reduction of 44, today we only have 51 companies that are in force," said the official.

The manager indicated that they are in the process of concluding the reduction of 14 more, so at the end of this administration the State productive company will only have 37 subsidiary companies, which he said due to their nature cannot be eliminated, since that some are holders of shares in other companies, others have profits and in some cases they own infrastructure, which makes them strategic and not easy to replace.

Romero Oropeza explained that the reengineering was a decision that occurred because some of the subsidiary companies acted in a “discretionary or customary” manner, and worked according to the instructions of the company's senior management.

The reengineering process of the Mexican oil company began in 2019 and is a corporate process that, according to PEMEX, has the purpose of generating savings and reducing the bulky structure of the State's productive company.

At the end of 2018, PEMEX had seven Subsidiary Productive Companies (EPS) that in turn concentrated the 95 subsidiaries, these were Exploration and Production, Industrial Transformation, Logistics, Corporate, Drilling and Services, Ethylene and Fertilizers, but after the elimination of subsidiaries and the merger, currently it only maintains the first four.

It should be noted that PEMEX Industrial Transformation, the second largest in the company, absorbed the three subsidiaries that were eliminated: Logistics, Fertilizers, Drilling and Services, and Ethylene.

According to Romero Oropeza, the merger of said subsidiary companies made it possible to transmit to the merging company the human, material and financial resources, as well as assets, rights and obligations that make up its assets, information, documentation under its responsibility, which improves the operation and generates economic savings.

In this sense, the annual average of administrative spending by the oil company amounts to 3,242 million pesos, which represents a decrease of 67%, when compared to the annual average spent by the previous administration.

He also highlighted that the reengineering of PEMEX is only one of the measures implemented by the oil company to improve its financial and process functioning, since multiple measures have been implemented depending on the area to be improved, where the operational excellence strategy is responsible for the advances that are registered with regard to production.

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