Petróleos Mexicanos

Petróleos Mexicanos
Jorge Díaz Serrano · Public domain · source
Name	Petróleos Mexicanos
Type	State-owned enterprise
Industry	Oil industry
Founded	1938
Founder	Lázaro Cárdenas del Río
Headquarters	Mexico City
Area served	Mexico
Products	Petroleum, Natural gas, Petrochemicals

Contents

Petróleos Mexicanos is the state-owned oil and gas company established in 1938 during the administration of Lázaro Cárdenas del Río following the nationalization that affected foreign firms including Royal Dutch Shell, Standard Oil, and Gulf Oil. As Mexico’s principal hydrocarbon producer, the company has been central to policies of presidents such as Álvaro Obregón, Manuel Ávila Camacho, Adolfo López Mateos, Carlos Salinas de Gortari, Felipe Calderón, Enrique Peña Nieto, and Andrés Manuel López Obrador. Its activities intersect with institutions and laws like the Constitution of Mexico (Article 27), the Mexican oil expropriation of 1938, the Mexican petroleum industry reform of 2013–2014, the Mexican Congress, and the Supreme Court of Justice of the Nation (Mexico).

History

Founded after the 1938 nationalization ordered by Lázaro Cárdenas del Río, the company succeeded assets held by multinational corporations including Royal Dutch Shell, Standard Oil, Texaco, Gulf Oil, and California-Texas Oil Company. During the mid-20th century it expanded alongside state projects like the Mexican Miracle, pipelines such as those connecting to Coatzacoalcos, and petrochemical complexes influenced by agreements with firms like ExxonMobil and Chevron. The 1970s brought fields discovered in basins including the Gulf of Mexico and projects tied to national planning under presidents like Luis Echeverría Álvarez and José López Portillo. In the 1990s and 2000s, reforms under Carlos Salinas de Gortari and later debates involving Vicente Fox and Felipe Calderón set the stage for the 2013–2014 energy reform championed by Enrique Peña Nieto, which led to competition with companies such as BP, TotalEnergies, Shell, Chevron, ExxonMobil, Repsol, Petrobras, Statoil (now Equinor), and ENI. Subsequent shifts under Andrés Manuel López Obrador altered strategy and oversight, influencing relations with bodies like the National Institute of Statistics and Geography and the Federal Electricity Commission.

The company operates under Mexican law with oversight from the Secretariat of the Interior (Mexico), the Secretariat of Energy (Mexico), and the Mexican Senate through appointments and budgets influenced by the Federal Constitution of the United Mexican States. Board appointments and executive leadership have included figures connected to administrations such as Miguel de la Madrid, Ernesto Zedillo, Vicente Fox, and Enrique Peña Nieto; governance debates have involved entities like the Auditoría Superior de la Federación, National Autonomous University of Mexico, and international norms from agencies such as the International Energy Agency and the World Bank. Corporate subsidiaries and affiliates cooperate with contractors and partners including Bechtel, Halliburton, Schlumberger, Siemens, and General Electric in joint ventures subject to regulations by the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE).

Operations span upstream exploration in basins like the Salina Basin, Cantarell Field, Ku-Maloob-Zaap, and deepwater blocks in the Sigsbee Deep, as well as downstream refining in complexes at Salamanca, Minatitlán, Tula, Madero, and Cadereyta. Midstream assets include pipelines linked to regions such as Veracruz, Tabasco, and Campeche, and storage terminals that interface with ports like Veracruz Port and Tuxpan Port. The company’s petrochemical, lubricants, and retail networks compete or coordinate with multinationals and state firms such as Pemex Gas y Petroquímica Básica, Pemex Refinación, Texaco, BP, and Repsol on fuel distribution, marina terminals, and LNG projects. Technology and services engagements have involved Halliburton, Baker Hughes, Schlumberger, Siemens, ABB, and research collaborations with institutions like the Universidad Nacional Autónoma de México and the Instituto Politécnico Nacional.

Revenue streams derive from crude sales, refined products, petrochemicals, and service contracts, and financial results are reported within frameworks monitored by the Secretariat of Finance and Public Credit (Mexico), the International Monetary Fund, and credit agencies such as Moody's, Standard & Poor's, and Fitch Ratings. Historic production peaks at fields like Cantarell Field affected national income during the administrations of Ernesto Zedillo and Vicente Fox, while price volatility tied to global markets involving Brent crude oil price and West Texas Intermediate influenced fiscal balances. Debt issuance and capital expenditure programs have involved international banks including Citigroup, Banco Santander, HSBC, and institutions like the Inter-American Development Bank.

Environmental incidents and safety issues have occurred in regions such as Tabasco, Veracruz, Campeche, and coastal zones of the Gulf of Mexico, prompting oversight from the Secretariat of Environment and Natural Resources (Mexico) and lawsuits involving communities around sites like Dos Bocas and river basins affecting ecosystems similar to the Usumacinta River and Grijalva River. Responses have involved collaborations with environmental organizations such as Greenpeace, World Wildlife Fund, and governmental agencies like the Federal Attorney for Environmental Protection (PROFEPA), and have been scrutinized by courts including the Federal Court of Administrative Justice (Mexico). Safety programs have engaged contractors like Halliburton and Schlumberger and followed international standards promoted by bodies such as the International Association of Oil & Gas Producers and the International Organization for Standardization.

The company has faced controversies and legal challenges including allegations tied to corruption probed in inquiries involving politicians such as Emilio Lozoya Austin, investigations by the Attorney General of Mexico and the Public Ministry (Mexico), and disputes over contracts awarded to firms like ICA, Altos Hornos de México, and international contractors including Bechtel and SENER (Mexico). High-profile scandals intersected with administrations of Enrique Peña Nieto and Andrés Manuel López Obrador, arbitration cases before institutions like the International Centre for Settlement of Investment Disputes and litigation in domestic courts, and debates about privatization and the 2013–2014 Mexican energy reform involving parties such as Partido Revolucionario Institucional, Partido Acción Nacional, and Movimiento Regeneración Nacional. Criminal prosecutions, asset freezes, and compliance reforms have involved cooperation with agencies including FBI, Department of Justice (United States), and regional bodies like the Organization of American States.