Pemex CEO says industry reform best thing for company amid oil price plunge

The recently installed new chief of Mexico’s state oil firm Pemex says the plunge in prices will not change his nation’s commitment to reforming its oil production sector, according to CNBC.

In fact, says CEO Jose Antonio Gonzalez Anaya, the weak price of oil is an opportunity as much as a challenge. Gonzalez Anaya was speaking at the IHS CERAWeek energy conference in Houston, Texas.

The reform process began in 2012 but has been picking up momentum in the past year as Pemex has begun shedding its monopoly position in Mexico’s oil production industry.

Attempts to auction oil prospects, offshore and on land, to private and foreign companies have met disappointing responses so far, largely because of the price plunge.

Nevertheless, Mexico is going ahead with a fourth round of bids on deep water sites in the Gulf of Mexico.

Gonzalez Anaya was appointed earlier this month by national president Enrique Pena Nieto to replace Emilio Lozoya Austin, after Lozoya Austin’s three years in charge had failed to revive Pemex’s business fortunes.

The new incumbent has promised to restructure the company while keeping layoffs to a minimum.

He said he will submit cuts to the board this week along with proposed asset sell-offs. And he maintains that the reform process makes Pemex better equipped to survive the steep drop in prices.


Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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