Mexican oil giant needs $25 bn in annual investment

Venezuela Star (IANS) Tuesday 7th February, 2012

State-owned oil giant Petroleos Mexicanos, or Pemex, will "require annual investment and acquisitions" for its operations "exceeding 320 billion pesos (nearly $25.2 billion)" over the next few years, CEO Juan Jose Suarez Coppel said Tuesday.

The Pemex chief spoke during the opening session of a company-sponsored event in Mexico City that was also attended by Energy Secretary Jordy Herrera and other high-level officials.

Pemex has implemented new and more modern contracting procedures since the 2008 energy industry reforms were implemented that "have already started to produce results that are being translated into substantial savings" for the company, giving it "greater agility and efficiency in purchasing", Suarez Coppel said.

Pemex's subsidiaries, for example, have achieved 1.75 billion pesos (nearly $138 million) in cost savings from the provision of services to offshore platforms, resulting in a 7 percent reduction in total costs since 2010, the executive said.

The oil company saved 481.9 million pesos ($38 million) on the acquisition of six tankers last year, Suarez Coppel said.

Pemex is becoming "a highly competitive, safe and sustainable company", thanks to the steps being taken, the CEO said.

"Good results are being obtained" from the new contracting practices, which are aimed at turning Pemex into a "more prosperous and competitive" company, Herrera said.

"Pemex is undergoing a deep transformation process" that is changing its procedures in an effort to promote best practices based on international standards, the energy secretary said.

--IANS/EFE

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