Pemex shrinks; now it only operates with three subsidiaries

This month, Petróleos Mexicanos (Pemex) gets smaller.

The Board of Directors of the company he heads Dew nahle Garcia authorized the merger of Pemex Transformación Industrial (TRI) with Pemex Fertilizers, which implies that it will operate in 2021 with a corporate and three subsidiaries.

This decision reverses the separation of Pemex into a corporate and seven subsidiaries that energetic reform had executed.

From the first minute of this year, Pemex operates with the corporate whose headquarters are in the Executive Tower of Marina Nacional in Mexico City, plus three subsidiaries Pemex Exploración y Producción, Pemex Transformación Industrial and Pemex Logistics.

Also read: Deadline for Pemex

The merger was a proposal from the director of Pemex, Octavio Romero Oropeza, and was authorized in the 963 Ordinary Session of the highest governing body of the oil company on December 2, 2020, according to Agreement CA-084/2020, and entered into force on January 1 of this year, prior notice to the Service of Tax Administration (SAT).

Pemex’s new structural organization occurs at a time when it is going through a complex financial situation. Data from the company show that in the third quarter of last year it registered a comprehensive loss of 1.9 billion pesos and a debt that almost amounted to 2.5 billion.

To carry out the merger, Pemex TRI will subsist as the merging company and Pemex Fertilizantes will be terminated as the merged company, with effect from January 1, 2021.

Also read: Pemex will add another year without meeting production

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Another step was the adaptation of the agreement to create the productive company of the State Pemex TRI and its organic structure, which delegates the production, distribution and commercialization of ammonia and its derivatives and fertilizers.

In the same way, the Pemex Board of Directors authorized the capitalization of Pemex to Pemex Fertilizantes up to 114.86 million dollars so that this company, through its company subsidiary PMX Fertilizantes Holding capitalize the company subsidiary PMX Fertilizantes Pacífico.

He instructed the administrations of Pemex and Pemex Fertilizantes to manage the corresponding actions so that the use of resources is in conditions of effectiveness and transparency, as well as to carry out necessary actions so that, as far as possible, financing is obtained and / or the loans whose commitments are covered with the authorized capitalization are restructured.

Also read: Federal government injects Pemex 95.6 billion pesos to strengthen its finances

Bulging structure

Until 2018, Pemex’s structure consisted of Petróleos Mexicanos (Corporate), Exploration and Production, Industrial Transformation, Drilling and Services, Cogeneration and Services, Fertilizers, Ethylene and Logistics.

The restructuring of the company began in July 2018, with the declaration of dissolution of Pemex Cogeneración y Servicios published in the Official Gazette of the Federation.

In 2019, with the new administration installed, the declaration of dissolution of Pemex Perforación y Servicios and Pemex Etileno was carried out on July 30 of that year. With this, from the first minute of this year, Pemex TRI will continue to carry out the activities that it executes in accordance with its purpose and will carry out the activities of Pemex Fertilizers.

Also read: Mexican oil rises to $ 48.81 against the 42.1 forecast by the government for 2021

In fact, Pemex Fertilizantes will transfer human, financial and other resources to Pemex TRI, in order to perfect the merger.

In other words, Pemex TRI will be subrogated to the rights and obligations, including the liabilities of Pemex Fertilizantes.

Still until the last minute of 2019, among the federal government’s priorities was to consider the need to revitalize the fertilizer industry in Mexico, with the intention of recovering national food sovereignty.

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