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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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Ensuring integrity throughout Petróleos Mexicanos' procurement cycle

Public procurement operations in the extractive sector present a high risk of corruption throughout OECD countries because of the significant level of expenditure involved and the complexity of the whole procurement cycle. Petróleos Mexicanos (PEMEX) is not immune to such risks and although it is developing initiatives and mechanisms to promote integrity in its activities and within the organisation, it still faces a number of challenges in building a coherent and comprehensive integrity system and in creating a culture of integrity. This chapter analyses PEMEX’s integrity policy and legal framework, highlighting recent developments and emphasising areas where further efforts are needed, which include: corruption risk-mapping, disclosure and management of conflict of interest, integrity training and awareness programmes and whistleblowing protection. The chapter also addresses the key role of the private sector and the importance of setting high standards of integrity for all stakeholders in the procurement cycle.

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