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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Strengthening the structure and governance of Petróleos Mexicanos' procurement function

Mexico undertook a significant reform package for its energy sector in 2013. This chapter analyses the corporate governance of PEMEX, after such reforms, its organisational structure, the normative framework applicable to procurement activities, the governance and co-ordination of the procurement function, and the benefits from centralisation of its procurement activities. It will discuss the implications of the greater autonomy granted to the company for its administration, organisation, management and budget, mainly the fact that opening up Mexico’s energy sector to private investment meant that PEMEX has to compete in the marketplace. Finally, this chapter assesses the core change in PEMEX’s procurement structure after these reforms, which consists on the critical mission of creating value.

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