Public Procurement Review of Mexico's PEMEX

Adapting to Change in the Oil Industry

image of Public Procurement Review of Mexico's PEMEX

This report on Mexico’s state-owned oil company PEMEX is part of a series of OECD reviews of Mexico’s procurement institutions. PEMEX’s procurement system was overhauled after Mexico’s 2013 Energy Reform opened up the sector to private participation, requiring PEMEX to compete in an open market. Using the 2015 Recommendation of the OECD Council on Public Procurement as a benchmark, the review assesses the effectiveness and integrity of PEMEX’s entire procurement system while identifying a series of actions for improvement. A state-of-the art procurement system can not only help PEMEX achieve value for money on a sustainable basis, but also support other social and environmental policy objectives in Mexico.

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Enhancing procurement capabilities in Petróleos Mexicanos

This chapter analyses how Petroleos Mexicanos, or PEMEX, could transform the procurement function into a strategic activity for value creation, including by making use of strategic workforce planning, change management, a skills framework, recruitment and promotion processes, training and performance management. It assesses the institutional model for human resources management in PEMEX, including processes such as recruitment, development and retention. Since it is critical for the company to be endowed with the right number of procurement officials with a fit-for-purpose set of competencies and skills, this chapter provides recommendations to improve the management of the procurement workforce in order to fulfil the company objectives and quickly evolve bearing in mind the company’s new institutional mission focused on creating value.

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