Since the official launch of the Energy Reform, enacted on Dec. 20, 2013 in the Official Journal of the Mexican Federation (Diario Oficial de la Federación,) PEMEX took over the business as an independent entity, accepting foreign investment almost immediately and sending international capital to exploration activities in the Gulf of Mexico.
PEMEX hoped to compete with global giants such as Exxon Mobil Corp., but the drop in oil prices and the rising dollar value, have affirmed the unexpected outcome. Since then, the company has been working on several fronts to contain and reduce costs, such as:
1. Eliminating 62 billion pesos from their 2015 budget
2. Renegotiating contracts with suppliers
3. Reducing personal expenses
4. Formed an administrative agreement with the Union on August 11, 2015, that sets forth the foundations to reduce the pension liability of the company within a period not exceeding 90 calendar days.
5. Partnership with the Federal Government to create incentive contracts, partnerships with third parties in the areas of exploration and production (farm-outs), as well as new incentivized contracts for the development of fields. Similarly, there are important partnership projects in other areas of the value chain, such as industrial transformation and logistics, which will be disclosed in upcoming months.
Additionally, Pemex and the Union met in a timely manner the requirements set forth in the Third Transitory Article of the decree by which several provisions of the Federal Law of Budget and Fiscal Accountability, and the General Law of Public Debt are amended.