By Royer Frutis and Ricardo Ortega
We are in times of change, where define ourselves because there is a permanent crisis or go in search of opportunities that are put on the market is the most present decision that remains in the minds of our industry.
A business plan is the formal declaration of a set of objectives of a business initiative that is constituted as a projection and evaluation phase* and is the business plan of Pemex for the hydrocarbon industry and thus for investors, a map that presents the plans and the direction of the company, with new vigor and the mind focused on putting the Mexico brand in the first place and in joint collaboration with Royer Frutis colleague and partner of Oil and Gas Alliance who wrote about this look at the business plan presented by Octavio Romero Oropeza, where our main objective will be to judge by the reader to see beyond the criticisms and present 8 key points for business development and joint opportunities of whom (PEMEX) despite the energy reform and New international players still maintain 80% of the generation of business in the oil and gas industry in Mexico.
Furthermore, «A business plan is required that resolves the need for a reconciliation between the private initiative of the energy sector with PEMEX, who is in charge of Octavio Romero Oropeza to accelerate investments»
Why 8 Key Points in the Business Plan Presented by Octavio Romero Oropeza?
There are definitely 8 points that determine your vision, leadership and focus on a set of inclusions and acceptances of Octavio Romero Oropeza in a business plan that is combined with the receipt of the subsidiary productive company (EPS) and its short-term plans. and medium term distribution issues, storage and refining mostly in a trend of land fields, where we also perceive a necessary next update of the plan after the next meeting of the board of directors in the month of February where we consider that will eventually keep these 8 key points or thus increase new points according to the results of the reception of PEMEX and the obvious changes that are perceived inside the company.
I must clarify that the changes that are perceived, in the budget issue, announced investments and possible changes in exploration and drilling techniques by the same president of the republic do not touch on budget issues, here we prefer to wait for the next announcements on the month February 2019.
View from the Exterior of the Business Plan Presented by Octavio Romero Oropeza
By Royer Frutis
What is the vision from outside of the energy sector about the business plan by Octavio Romero Oropeza?
Mexico has currently faced different political, economic and social situations to which all sectors have had to restructure and evolve to changing conditions in order to remain in the market, as is the most recent example of Mexico’s exit from the top 10 of the most attractive markets to invest, this is revealed by the survey conducted by the business consultancy PriceWaterhouseCoopers (PwC).
Another situation that we face is the shortage of gasoline where in some parts the problem is constant, due to the infrastructure, distribution, storage and inventory of fuels in the region, and not due to the theft of gasoline or the intermittency of distribution and supply as it is currently in some parts of the country.
In the energy sector, in particular, PEMEX, the greatest part was the energy reform due to all the challenges that this reform brought with it. One of the main challenges facing not only PEMEX, but also the entire hydrocarbons sector is the fluctuation of crude oil costs to which adjustment plans that directly impact the value chain that has been implemented.
Pemex’s national business plan has profitability as its main axis. The financing of Pemex through the international financial markets within the public placement of its shares through two aspects: the participation of private companies (associations) and the participation of private companies in activities to support refining. This is a factor that brought the energy reform, to meet the goal of greater infrastructure, technology and development throughout the value chain that leads to the country’s energy security.
That is why together with Mr. Ricardo Ortega we present to you,
The 8 Key Points of the PEMEX Business Plan Presented by Octavio Romero Oropeza
By Royer Frutis and Ricardo Ortega
A business plan with a strong tendency to increase land cover production, reactivate the economy in the short term by incentivizing production services bids, which drives the generation of our own gasoline and seeks to increase economic development from the southeast of the country , allowing to operate the contracts assigned in the different round held by the CNH.
It raises investments in the reconfiguration of refineries.
The national refining plan has been harshly criticized by national experts and with some uncertainty by the international opinion leaders, mainly the amounts assign to the reconfiguration and finishing times of the new refinery.
From the point of view of Octavio Romero Oropeza, the multiple investments that were made over 10 years in past administrations which add almost two billion dollars in 3 refineries did not work to undermine the fall in their production, with an investment smart also that seeks to stop the privatization and displacement in the activities of our nationals.*
With this vision and leadership, the business plan proposes:
- Development of profitable fields for the country or through alliances, such as the development of recently discovered fields and the reduction of the rate of decline of existing fields.
- It is determined to develop fields that lack the necessary investments from the subsoil variables require.
- Development and investment in the infrastructure of terminals and pipelines, through partnerships between government / private companies to have a larger storage and distribution network in tandem with the increase in fuel inventory.
- Development of support activities in refining (hydrogen, steam and electricity), to reach the numbers mentioned in the refining plan of 1,863 million barrels per day by 2022.
- Development, construction, financing and contracting of cogeneration projects, reducing the cost of electricity generation in a sustainable manner.
- Maximize the use of ethane through the storage and diversification of raw materials, and its direct use in the petrochemical industry and the diversification of its use in different sectors, increasing its value chain.
- Partnerships in oxygen supply, nitrogen and water treatment, in the various operations carried out in the fields.
- Integrate the ammonia value chain and guarantee the supply of gas, increasing Pemex’s investment, expansion of transport infrastructure and exploration in unconventional fields.
Where it is required to continue promoting participation in conjunction with private companies to meet the proposed goals, because it does not have the infrastructure, technology and capital for the development of the sector, on the other hand it has great experience and knowledge that has the human capital of the Mexican energy sector.
At the moment of having these strategic alliances, development projects and diversification of the energy matrix, Mexico will have an energy stability that will be sustainable. Having clear that it must be evolving according to the demands of the market.
From a concrete perspective, the business plan of Octavio Romero exposes in every sense the search to recover and increase land production and thus develop private industry for the benefit of social and national development.
So we as part of the experts in this cyclical sector hope that these key points work in favor of your next decisions.
By Royer Frutis and Ricardo Ortega
* Business Plan https://es.m.wikipedia.org/wiki/Plan_de_negocio
* Pemex Business Plan http://www.pemex.com/acerca/plan-de-negocios/Documents/plannegocios-pmx_2017-2021.pdf
* Words of Octavio Romero Oropeza in the presentation of the national refining plan. http://www.pemex.com/saladeprensa/discursos/Paginas/2018-discurso-DosBocas.aspx#.XFxBOhqXvmo
