Exec: Pemex's 'Front Door' Could Open Wider with Mexican Energy Reform

As the leader of such a critical Pemex business unit, Henriquez is in a unique position to discuss the implications of energy reform. Rigzone recently chatted with the PPI executive to obtain his insights on the topic. Read on for excerpts from the interview.

Rigzone: Energy reform in Mexico is getting a lot of media attention these days. Are there any misconceptions about Pemex and the state of Mexico's oil and gas industry that are circulating in press reports that you would like to dispel in this forum?

Henriquez: First, Pemex is not being privatized. The hydrocarbons will still be owned by the state, by the country.

Second, while there are different proposals, all parties agree that Mexico needs profound energy reform. The differences lie in the form of the changes, not so much that there is a need for reform.

Rigzone: Where is there broad agreement across the political spectrum and within the general public? Where is consensus still lacking?

Henriquez: All political parties agree there needs to be change in the energy industry – and particularly Pemex, which provides about 35 percent of Mexico's federal budget. Ninety-five percent of Pemex's profit goes to taxes, so that highly restricts its ability to invest across the value chain.

Everyone agrees that Pemex needs to have more investment – not at the behest of the Mexican government – and needs more autonomy in investing in its resources. Where agreement is lacking: how much needs to be opened up to outside companies. Pemex believes it's necessary to change the constitution to allow companies to come in. Pemex can't do it alone. Constitutional change is still a contested matter.


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