Eduardo Camero
Director General of Exploration and Exploitation
Ministry of Energy
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Insight

Business Case for the Centralization of Expertise

Wed, 01/25/2012 - 09:59

“While globally, many oil and gas companies have specialized areas of focus, such as mature fields, deepwater or shallow water, Pemex has specialized in shallow waters, but it also has the mandate to operate in a very wide array of areas. Pemex has to operate in natural gas fields in Burgos, complex onshore oil fields at Chicontepec, mature fields and now deepwater and shale gas. As a result, the structure of Pemex evolved a little dierently from other oil companies, that have their own areas of specialization and can stick to them,” says Eduardo Camero Godínez, Director General of Exploration and Exploitation at Mexico’s Energy Ministry.

“However, it is clear that this natural evolution of Pemex’s operating model is not as ecient as others around the world. Because of the assets the company has to handle, complete centralization is not the best model for Pemex, as it has to continue to maintain a focus on many dierent types of fields whilst moving to new ones.” Camero Godínez explains that another factor is that Pemex must continue to focus on its projects because of the budget restrictions placed on the company on an annual basis. If not all projects are considered individually, there is a chance that some will be left behind as the company allocates its resources.

“Pemex operates in a fairly unique budgetary and political environment,” says Camero Godínez, but he believes that the proposed changes would be a more rational way of operating for the company. He argues that a centralization of knowledge is essential, as it will allow Pemex to consolidate all its experiences from across its diverse operations, and put them to eective use in tackling its biggest challenges in the years to come.

“Now, we have to let the process work itself out and see how it develops over the next few years. Pemex is at a significant crossroads as Cantarell and KMZ decline and the company moves into deepwater and shale gas, whilst at the same time adjusting to new integrated service contracts. However, we believe that the new structure of the company will give it a much better chance of overcoming these challenges,” Camero Godínez says.