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Analysis

Does the CNH Live up to Expectation?

Wed, 01/25/2012 - 14:06

“The CNH has already had a positive eect on a number of Pemex decisions, for example in Chicontepec,” says Eduardo Camero Godínez, Director General of Exploration and Exploitation at Mexico’s Energy Ministry. “Pemex has been criticized for the way that it handled Chicontepec, but I think that it hasn’t received the recognition for being very open to criticism and suggestions on how it could better develop Chicontepec. The CNH has been adamant about implementing the changes it suggested, and Pemex was very receptive to these changes, something it has not received enough recognition for as a large company where quick changes are often dicult.”

“For the last 70 years, Pemex was held accountable only in terms of results, not in terms of regulation. Adjusting to the new way of operating is taking some time, but you cannot expect such a large company to do this from one day to the next. Clashes are inevitable; sometimes the two organizations have clashed when Pemex believes it is complying with the new regulator when actually they are not.”

When talking about the role that he expects the CNH to play in the years to come, Camero Godínez says: “As it currently stands, CNH only regulates Pemex and only through Pemex can it indirectly regulate private parties. For example, as regulators, the Energy Ministry never talks directly to providers. Our relationship is with Pemex, and Pemex must make sure that its providers comply with whatever we ask Pemex to do.

“The priorities of the CNH in the future will depend on what resources they have. As long as they can increase their human resources, gain access to better software and hardware and to more specialized people, they should first try to solidify what they have already done and not rush things, because they are dealing with a company that has 150,000 people and that used to be self-regulated until only recently. Maybe the Commission sometimes says that they should already be at the same level as the regulators in Brazil or Norway, but I think that as far as the scope of the 2008 reform goes, they are moving at a relatively good rate.”