Luis Puig
President
Petroexpertos 5000
/
View from the Top

Harnessing Knowledge of Former Pemex Experts

Wed, 01/18/2017 - 07:33

Q: How does the experience of its 34 founding members differentiate Petroexpertos 5000 from other consultancies?

A: This consulting agency was specifically created to assess the Mexican market and was modeled after Shell Global Solutions, whose members are retired oil and gas experts. Our main client is PEMEX but we look forward to expanding our client portfolio as the market evolves. We have already provided our services to some private international companies that seem to be more appreciative of our services since the beginning of the Energy Reform and the resulting opening of the market. The unfortunate low oil-price context in which the reform took place slowed down the processes required for its implementation.

Q: How can Petroexpertos assist incoming players to help them operate under the new regime?

A: We have a group of exploration and production consultants who are retired PEMEX employees with expertise in the operation of the Mexican market. We believe the effects of the reform will start to have an impact in 2018. The regulatory institutions have been central to the implementation of the reform and we have collaborated with them to improve all processes. Regarding the midstream segment there is an initiative to speed up the market’s liberalization process. There are numerous winners from the private initiative but as long as the government does not relinquish control of fuel prices, private companies will remain excluded. If this issue is not addressed, the government will lose credibility.

Q: How can PEMEX reduce its increasing dependency on the US for the importation of refined products?

A: Over 60 percent of the gasoline, 30 percent of the diesel and 50 percent of the gas Mexico consumes is imported. This makes us highly dependent and vulnerable to the US’ hydrocarbons supply. Mexico has many options to end this dependency, among which could be for PEMEX to build small refineries, but the processes under which they would operate remain uncertain. Another option would be for PEMEX to partner up with private companies for the investment and technology required to build larger refineries. We have been working with numerous companies to develop these types of projects and helping PEMEX reach out to interested companies. We also created a group of experts to assess PEMEX regarding reliability along the refining process.