Mexico: Pemex’s CEO talks partnerships and reform
Holding degrees in economics and law and a Master’s in public administration and international development from Harvard, Emilio Lozoya Austin became the CEO of Pemex after heading the international affairs office for Peña Nieto during his campaign, and leading his transition team. He speaks to EnergyBoardroom here about what Pemex is looking for from future international partners.
Q: Beginning in 2015, Pemex is set to ink its first joint ventures with private and foreign oil companies. Generally speaking, what characteristics and attributes will Pemex seek in its partners as the company makes one of the first major action steps in its energy reform?
A: International oil companies and medium-sized oil companies across the world are very eager to work with us, because we are a leading global player, particularly in shallow waters. In deep water we have evolved technologically, and have a current success rate above 50 percent.
The oil industry needs to look at very long-term goals. Investment cycles in deep water are more than ten years, to recover the cost. In other types of reservoirs we might have longer or shorter term horizons.
But Pemex, considering that we have one single owner which is the State, has very long-term goals and very long-term investment cycles, and this is beneficial for our current and our potential partners.
With Round Zero we requested to retain exclusive rights to prospective oil resources of the areas we have the highest expertise. We will be focusing in the areas we have successfully been developing, but also have the opportunity to add joint ventures with other international oil companies to complement our investments.
In the end, our goal is to allow Petroleos Mexicanos to have enough reserves to ensure sustainability in the medium and long-term, while giving the market sufficient resources to develop through the private sector. We need to assure our company’s growth and our place as a leader in the oil and gas industry in Mexico.