Pemex issued the following announcement on June 28.
The Board of Directors of Petróleos Mexicanos (Pemex) unanimously approved, at the proposal of the General Director, Octavio Romero Oropeza, the mergers of the subsidiary production companies: Pemex Exploration and Production (PEP) with PPS and Pemex Industrial Transformation (TRI) with Ethylene.
With these actions, the Government of Mexico, through Petróleos Mexicanos, takes an important step in the integration of the value chain in a single company and advances in the consolidation of austerity measures in order to strengthen Pemex for the benefit of its administration and operation.
In the Extraordinary Session 944, the Board of Directors authorized that such mergers take effect as of July 1, as part of the new organizational structure approved on March 26. Therefore, PEP and TRI will subsist as merging companies and, PPS and Ethylene, will be extinguished as merged companies.
It is important to highlight that in past administrations, Pemex was fragmented into various subsidiaries, increasing the bureaucracy and expenses of the company, so the current administration has been given the task of merging different subsidiary companies in order to improve corporate practices.
Likewise, it was announced that within the structures, both PEP and TRI, the functions of PPS and Ethylene will be incorporated, which will transmit those human, material and financial resources, as well as the goods, rights and obligations that integrate their patrimonies.
It was also instructed to respect the labor rights of the workers of both Pemex Perforación y Servicios and Pemex Ethileno.
The declaration of the extinction of PPS and Ethylene will be published in the Official Gazette of the Federation through the Legal Department of the company.
The new administration of Pemex works under a new management model based on financial discipline, innovation, operational efficiency, austerity policies and preventive fight against corruption.
Original source can be found here.