- 22
- AUG
- 2011
Pemex outsources: Mexican business engages new stakeholders
Author: - Categories: Supplier Relationship Management, Outsourcing, Procurement Strategy
Petrol company Pemex has outsourced three contracts, driven by its lack of capability to extract oil from the more mature oil fields. Mexico's state oil monopoly yesterday awarded the country's first private oil production contracts in more than 50 years to two companies as it attempts to open up the country's heavily protected energy sector to private capital. The UK Petrofac won two of the three contracts on offer, while Administradora de Proyectos de Campo won the third.
It is a strong signal that Mexico is moving forwards, opening one of the major treasure chests in its ownership. Pemex has seen its output fall from 3.4 million barrels per day in 2004 to 2.6 million barrels today because of antiquated laws that prohibited the company from entering joint risk contracts with third parties to share the risks and rewards of explorations. The company’s new management team has taken advantage of the energy reform approved in 2008, the aim of which was to attract more private companies to the energy sector.
As the number of stakeholders increases, the opportunities for organisations to go further with internal improvements also increase. More stakeholders bring more capabilities and the search for profit by a larger number of players pushes organisations forwards and increases their chances of success.
In my opinion the next smart move for Pemex would be to go public. With another class of shareholders becoming private investors, the Mexican government (and therefore the whole country) could benefit from one of the biggest cash cows that the country owns.
The optimisation of capabilities and the consequent improvement in businesses efficiency is often driven by the diversification of the stakeholder map, especially in emerging markets where governments still control key sectors such as energy, communications and infrastructure. Mexico and many other LatAm countries are moving towards this target, with Venezuela illustrating the other side of coin.
