PROCUREMENT PRACTICES AT PEMEX. David Shields. Platts 16 th Annual Mexican Energy St, Regis Hotel, Houston, Texas. 13 November, 2012.

Transcription

1 PROCUREMENT PRACTICES AT PEMEX David Shields. Platts 16 th Annual Mexican Energy St, Regis Hotel, Houston, Texas. 13 November, 2012.

2 In 1992, NAFTA negotiations set the foundation for competitive, international public tenders, which Pemex has been trying to improve since then. Pemex developed integral and multiple-services contracts early last decade. The year-2008 Energy Reform brings new, specific procurement rules for Pemex, applicable to its main or substantive activities. The Pemex Law took the place of the Public Works Law (LOPSRM) and the Acquisitions and Services Law (LAASSP) for these main activities. The concept of performance or incentivated contracts was introduced. The 2008 Pemex Law (Ley de Petróleos Mexicanos) is very clear about what is and what is not allowed in Pemex procurement, but the scope for additional remuneration to contractors is very limited. The enabling rules, or DACs, provide a basis for contractors to explore and produce oil under the concept of performance.

3 The year-2008 Reform involved no changes to Mexico s restrictive Constitution, so performance contracts, especially when related to E&P, are about finding ways of getting around Constitutional and legal restraints. Tenders now include a price negotiation stage prior to the final ruling, but this is applied with different criteria in different tenders and does not imply any real negotiation. Rather, it allows bidders to make a second offer in line with the demands of Pemex. The new procurement rules (Pemex Law, its regulations and DACs) are now being applied in many tenders, in everything from tanker ship purchases to drilling contracts. They were applied in the first two mature fields auctions, with eight blocks being awarded.

4 The mature fields auctions can be considered to have been successful, largely because they were transparent and attracted a high level of public interest. Even so, they did not attract bids from IOCs. However, many Pemex procurement processes cannot be considered either transparent nor successful. The 2008 Pemex Law has not simplified the procurement process at Pemex. Too many committee and board approvals are needed prior to the tenders. There is too much consultation internally and with other government offices. The tenders remain as complicated as before. Pemex is still unable to undertake real, flexible business negotiations under market conditions and to make certain purchases at market prices (as in tanker ships). Contractors are still unable to provide input on what projects should be undertaken and on many basic project decisions.

5 The current legal framework does not allow Pemex to have a normal business relationship with other market players. It makes it impossible for Pemex to enter into business ventures abroad, thus leading Pemex to seek unorthodox forms of partnering with companies in other countries. Yet, there remains major political opposition even in Peña Nieto s PRI party, which is now proposing a new reform to Pemex being able to enter into joint ventures with other companies. In recent times, Pemex has sought to carry out major deals and joint ventures through shell companies and offshore companies, such as PMI NASA and Mexigas International (MGI). Such deals are not transparent, do not go through the Pemex board and cause suspicion and controversy.

6 Conclusions Greater reforms are needed, including amendments to the Constitution and not only to enabling laws, because there is no more scope to get round the constraints imposed by the current legal framework. The solution is to take Pemex out of the federal budget and provide it with full autonomy as a 100% state-owned company, so that it can engage in orthodox business deals and procurement practices, without any need to seek legal subterfuges. THANK YOU! Muchas gracias!