Mexican State-Owned Oil Company Retains Rights To 83 % Of Country's Oil Reserves

Mexican State-Owned Oil Company Retains Rights To 83 % Of Country's Oil Reserves

Petroleos Mexicanos, Mexico’s state-owned energy entity will consume 83 percent of the country’s proven and probable oil reserves, the AP reports.

Mexican Energy Secretary Joaquin Coldwell said that Petroleos Mexicanos (Pemex) share of the oil supply will equal 2.5 million barrels of oil per day for 20 and a half years. “This guarantees that Pemex will have its development secured in the immediate future. Pemex will continue being Mexicans’ great company,” he said.

Pemex will also secure the rights to 21 percent of the country’s possible oil reserves, the report states.

Pemex Chief Executive Emilio Lozoya said the government-run entity will try to form partnerships with private companies on various projects to increase efficiency. “These first selected projects will allow us to leverage the possibility of establishing strategic partnerships to which Pemex had no chance, and will involve 1.5 billion barrels of (proven and probable) reserves,” said Lozoya.

According to the Financial Times, Pemex, with a yearly revenue of over 125 billion dollars, is the world’s second biggest non-public company based on total market value. However, the state-owned enterprise tends to secure a net income of only around 390 million dollars per year. As of 2011, Pemex employed 138,215 workers. Pemex is roughly $70 billion dollars in debt. The state-enterprise has been accused of forcing its employees to contribute to political parties, along with various forms of fraudulent activity.