Edgar Rangel

Future of the PEMEX Board

Tue, 01/22/2013 - 13:35

In the past, the board of Pemex primarily consisted of many members of the executive branch of the government, including the Ministers or Undersecretaries of Foreign Affairs, Economy, Labor, Finance, Environment, and Energy. Mexico has already tried to reduce the number of ‘political board members’ – today the board includes the Energy, Finance, and Economy Ministers, and the Hydrocarbons, Planning and Energy Transition, and Public Revenue Undersecretaries – and introduced independent professional board members.

The next energy reform might further improve the composition of the Pemex board. As a result, the board’s composition would continue shifting from being populated by people whose primary interest is extracting money from Pemex to fi nance the government’s agenda to people who are focused on creating value for Pemex. That is the mandate that we should set. I am not saying that the past composition of the Pemex board was wrong, but it was not optimal and it is evolving. The boards of IOCs such as Exxon, BP, and Shell are di† erent, and generally consist of independent advisors and the CEO. We are getting there.