SupplyChain Magazine July 2019 | Page 154

PEMEX PROCUREMENT INTERNATIONAL , INC ( PPI )

154 chain of oil in Mexico , from doing exploration and exploitation to transforming and commercializing crude oil and all its derivatives . Since the energy reform , the market has opened up , which is beneficial given the important level of investment that will take place in the sector .

“ Let ’ s keep in mind that PEMEX is a large company ; it ’ s emblematic and strong , but it lacks the capacity to explore every field existing in Mexico . In this way , other companies can take part and participate in this process , assuring Mexico that the exploitation of those fields will be carried out more efficiently . Given how the blocks have been assigned through tenders , the companies with the most participation or that generate the most revenue to the State are the ones that keep the fields . That ensures that Mexico is the big winner of these tenders and the big winner of the Reform ,” mentioned Escobedo . At the international level , big oil companies partner up to divide the risks and costs of exploration and exploitation in high-risk fields . The energy reform gives PEMEX the capacity to have partners and companies that help divide and diversify those risks and costs , working as

— Salvador Escobedo , CEO of PEMEX Procurement International

JULY 2019