October 8, 2011 at 12:11 am #2107
Pemex CEO Says Lack of Repsol Collaboration Is ‘Ridiculous’
By Carlos Manuel Rodriguez – Oct 7, 2011 3:54 PM CT
Petroleos Mexicanos’s chief executive officer said it’s “ridiculous” 30 years of partnership with Repsol YPF SA (REP) hasn’t paid off, and the oil producer is undaunted by hostility toward its increased stake in the Spanish company.
Pemex, as the state oil company is known, holds deep-water deposits and needs help in accessing them, while Repsol has the expertise and not the reserves, Juan Jose Suarez Coppel told reporters in his Mexico City office yesterday. Repsol could benefit from the companies’ collaboration, the CEO said.
The partnership “wasn’t working for us,” Suarez Coppel said. “And Pemex would like to have a heavier influence in the decisions and a stronger voice on the board.”
Repsol is seeking to halt an alliance between Pemex and Sacyr Vallehermoso SA (SYV), its largest shareholder, after the two companies agreed to coordinate their combined 29.8 percent voting stake to restructure the Madrid-based oil producer’s management. Pemex, a founder of the Spanish company in 1979, almost doubled its stake in Repsol to nearly 10 percent.
“I never expected such a reaction,” Suarez Coppel said. “But we’re not going to back off and go back home because they’re reacting like this.”
October 8, 2011 at 12:12 am #4901
Here is update on Pemex hostile attempt increase stake in Reposl & align partner Sacyr Vallehermoso.
Pemex has grown frustrated with its 30 year attempt to get Repsol use its deep-water expertise to develop its deposit.
The real problem however lies with Pemex & Mexico’s protectionist control over its oil field developments – where no ownership in these fields are allowed as reward for any majors that do have deep-water technology.
This Pemex stance and its approach is really the “ridiculous” element in this situation. The deep-water reserves are huge and Mexico which depends & takes most of Pemex’s earnings to fund the government programs could have been earning the revenue from the large oil flows for decades if it only agreed to partial share in the field in exchange for the deep-water expertiese from any of major oil companies which have that technology. Recently the Mexican government took a lot of heat for its position once the true size (denied by Pemex) was revealed – especially with declining existing crude fields.
Trying to force an investment partner to use its technology is just latest bad decision in failed Government experiment in oil industry ownership. Their will likely be no winners in this approach.
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