- The rights of the workers currently employed by Pemex Perforación y Servicios (PPS, Pemex Drilling and Services), as well as those of Pemex Etileno (Pemex Ethylene) will be respected
- The fusion will come into effect on July 1st.
The Board of Directors of Petróleos Mexicanos (Pemex) unanimously approved the proposal set forth by CEO Octavio Romero Oropeza, to perform the fusion of the subsidiary productive companies: Pemex Exploración y Producción (PEP, Pemex Exploration and Production) with PPS (Pemex Drilling and Services) and Pemex Transformación Industrial (TRI, Pemex Industrial Transformation) with Etileno (Pemex Ethylene).
With these actions, the Mexican Government, through Petróleos Mexicanos, is giving an important step towards integrating the value chain in the company, and making progress towards consolidating the austerity measures currently in effect, in order to further strengthen Pemex and to improve its management and operation.
During the 944th Extraordinary Session, the Board of Directors authorized these fusions to come into full effect on July 1st, as part of the new organic structure that was approved on the 26th of March. Therefore, PEP and TRI will remain as the fusing companies, and PPS and Etileno will cease to exist and become fused companies.
It is important to point out that during previous administrations, Pemex was fragmented into various smaller companies, thus increasing the bureaucracy and the expenses of these companies. It is for this reason that the current management has decided to fuse these subsidiary companies, and thus improve corporate practices.
Furthermore, the company announced that the functions of PEP and Ethylene will be incorporated into the structures of PEP and TRI, which will transmit the human and financial resources, as well as the properties, rights and obligations that make up the companies’ overall equity.
It was further instructed that the labor rights of the workers of Pemex Perforación y Servicios and those of the workers of Pemex Etileno, must be respected throughout the fusion process.
The statement of termination of PPS and Etileno will be published in the Official Journal of the Federation through the Legal Department of the company.
The new Pemex administration is working through a new management model based on financial discipline, innovation, operating efficiency, austerity policies and the prevention of corruption and bribery.