Pemex E&P CEO Defends 10-Year Maintenance Tender

Mexican state oil company Pemex's E&P division CEO Carlos Morales Gil has met with members of congress' bicameral permanent committee to defend the international tender for 10-year maintenance of pipeline systems, local press reported.

The hydrocarbons pipelines are in Tabasco, Veracruz, Chiapas and Oaxaca states.

The pipeline system includes the following: 93 pipelines running 1,775km in total that are operational or temporarily out of service; 22 pipelines (325km) out of operation; 75 connections of operational pipelines (45.1km); 49 rights of way (635km); and pumping, storage and sale centers, according to bidding rules.

The tender does not imply ceding administration of the infrastructure to the winning bidder, newspaper La Jornada reported quoted the CEO as saying.

The tender will bring about savings of US$200mn over the next 10 years, La Cronica quoted him as saying.

Senator Jose Murat (PRI party) said the contract "violates the constitution and the only thing it is achieving is the small-scale privatization of the state company," La Cronica reported.

Senator Graco Ramírez (PRD party) called for the tender to be suspended.

"It must be suspended because it sets a bad precedent as the terms of the contract can only be fulfilled by one company, a pipeline operator which is not Mexican," La Jornada quoted the senator as saying.

As of the last meeting to clarify project questions hosted by PEP on August 16, 13 companies had purchased bidding rules.

The companies include the following: Desarrollos de Ingeniería y Construccion (Dica); Constructora Subacuática Diavaz; PII Mexico; Gutsa Infraestructura; Mexicana de Servicios Subacuaticos; Siemens Innovaciones; Tradeco Industrial; Itochu; Williams International; Construcciones y Equipos Latinoamericanos; Energy Services Mexico; Servicios Maritimos de Campeche; and Water Treat.

Roughly US$46.5mn has been earmarked for the contract's first year.

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