The Focus of Pemex E&P

In September 2011, Pemex Exploration & Production (PEP) announced the reorganization of its internal structure so as to optimize its organizational capability to address the challenges that lie ahead and reach performance objectives. The Pemex subsidiary’s reorganisation included the creation of two new entities dedicated to exploration and field development to increase the focus on new discoveries and field development.

“The aim of the PEP reorganisation is to bring the people in charge of the dierent regions to focus on essential production issues. They should be focusing now on the assets they already have in place and the reserves that have already been discovered. Reservoir management is the key issue for the regional oces,“ says Carlos Morales Gil, Director General of PEP.

Rather than being handled by the regional oces like it was before, exploration activities are under the new structure centrally managed by one exclusive nationally-focused entity. The creation of a new unit dedicated to field development enables PEP to both benefit from the centralization of experience and expertise, and frees up capacity in the regional units to focus on reservoir management and production. Under the new organizational structure, contracting is also centralized. “Many of the regional oces, particularly those with an onshore focus, used to do a lot of contracting for maintenance activities. Under PEP’s new organizational structure, this no longer happens,” Morales Gil says. “Contracting of maintenance, logistics and construction services is now handled by a separate entity. We feel that these oces should not have to spend time contracting service providers or discussing governance issues. This is something best dealt with on a national level.”

The re-focusing of the regional units requires specific skills for their specialized roles. “The profile of the regional oces will have to be more technically focused in the future as they change to becoming production regions,” says Morales Gil.

The Director General of PEP points out that his unit has been moving very fast in the reorganisation process. The change at the macro level of the Pemex subsidiary is already fully accomplished, and the reorganization work is now concentrated on the regional and local levels. PEP is due to completely finish its internal reshue by the end of March 2012, according to Morales Gil. “It is a huge organisation that has to move to the new structure model: we are more than 50,000 people in PEP and we have relationships with more than 2,000 contractors and suppliers, and these also employ more than 50,000 people,” says Carlos Morales Gil. “It has been a well-organised process and has been well received by the vast majority.”