VANESSA AGUIRRE HEAD OF EUROPEAN OFFICE . PPI MÜNCHEN
The new procurement model in PEMEX after the Energy Reform
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
The most important source of government income and the largest company in Mexico
One of the top ten world crude oil producers
The sole producer of crude oil, natural and shale gas, and refined products in Mexico
Who are we?
(1) Statical yearbook 2013 (2) DCO PEMEX
• More than 150,000 employees1
• 6 Refineries 1 • 8 Petrochemical Complexes1
• 9 Gas Processing Complexes 1
• Pipelines: 67,000 Kms (approximately) 2
Snapshot
Facilities
44.1 55.3 55.7 66.6 69.6
36.1 48.0 55.2
59.4 52.6 0.4
0.4 0.4 0.6 0.8
80.6 103.8 111.4
126.6 123.0
2009 2010 2011 2012 2013
Exports Services Revenues total
PEMEX Context
Total Revenues (USD billion)
Production area
Refinery
Petrochemical Complex
Gas Processing Complex
Storage and Distribution Terminal
Pipeline
Maritime Route
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
The Energy Reform aims to attract investment and modernize the energy sector requiring changes in the industry.
Energy Reform
Creation of new Regulatory Entities
The participation of private companies in the sector
By 2016, domestic and foreign companies will be allowed to install gas stations In 2017, the price of LPG will be allowed to float to market prices Gasoline and diesel will be priced at market value in 2018
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
Who are the new actors in the industry?
Oil and Gas
Industrie
Goverment Authorities
Private Operators
State Operators
Goverment Authorities that manage and regulate the oil and gas activities
Who are the new actors in the industry?
Oil and Gas
Industrie
Goverment Authorities
Private Operators
State Operators
Goverment Authorities that manage and regulate the oil and gas activities
Individuals or corporations incorporated under applicable laws
Who are the new actors in the industry?
Oil and Gas
Industrie
Goverment Authorities
Private Operators
State Operators
Goverment Authorities that manage and regulate the oil and gas activities
PEMEX/ PSE Individuals or corporations incorporated under applicable laws
Who are the new actors in the industry?
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
The Reform implies a new challenge for PEMEX:
COMPETITION
PEMEX Challenge
The Reform implies a new challenge for PEMEX:
COMPETITION
• Experience • Knowledge • Personnel expertise • Cummulative assets • Competitive advantages
REFORM
PEMEX Challenge
The Reform implies a new challenge for PEMEX:
COMPETITION
• Experience • Knowledge • Personnel expertise • Cummulative assets • Competitive advantages
REFORM
Pemex, now as a business, will be able to compete
PEMEX Challenge
New participants, both as partners and competitors of PEMEX, to the energy sector
Substantial investment increase in the industry in
order to maximize resource productivity
Positive outlook after the Reform
PEMEX competes and operates as a
business
New participants
maximize resource
productivity
PEMEX competes and operates as a business
New participants, both as partners and
competitors of PEMEX, to the energy sector
Substantial investment increase in the industry in
order to maximize resource productivity
Positive outlook after the Reform
PEMEX competes and operates as a
business
New participants
maximize resource
productivity
PEMEX competes and operates as a business
New participants, both as partners and
competitors of PEMEX, to the energy sector
Substantial investment increase in the industry in
order to maximize resource productivity
Positive outlook after the Reform
PEMEX competes and operates as a
business
New participants
Maximize resource
productivity
PEMEX competes and operates as a business
Proven reserves reported to financial markets
Source: Reports to SEC: 20-F Forms for Petrochina, Royal Dutch/Shell, Petrobras, Total, BP, ENI, Statoil y Ecopetrol; 10K Forms for ExxonMobbil, Chevron, ConocoPhilips and 40-F Form for Encana
PEMEX Reserves are the 5th largest reported reserves worldwide.
Round Zero
Round One (Opportunities)
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
• Between $25 to $30 US Billion spend for equipment, services, leases, and public works procurement procedures
• Around 30,000 awarded contracts per year
• More than 3,000 employees dedicated to procurement
Snapshot
Procurement Context
Implementation of international best practices on three main subjects.
•Alignment with Corporate Strategy • Standardization of Process and Procedures •Process Governance. • Strategic Sourcing and Category Management •Market Intelligence
Strategy
• Strategic Alliances & Joint Ventures • Suppliers Development •National Content • Suppliers Evaluation •Demand Forecast
Suppliers
• Strategic Procurement by Business Units •Procurement Implementation Strategy • National and International Public Tenders • Restricted Bids • Direct Award
•Relationships with final users
Procurement
The New Pemex Procurement Division
Implementation of international best practices on three main subjects.
•Alignment with Corporate Strategy • Standardization of Process and Procedures •Process Governance. • Strategic Sourcing and Category Management •Market Intelligence
Strategy
• Strategic Alliances & Joint Ventures • Suppliers Development •National Content • Suppliers Evaluation •Demand Forecast
Suppliers
• Strategic Procurement by Business Units •Procurement Implementation Strategy • National and International Public Tenders • Restricted Bids • Direct Award
•Relationships with final users
Procurement
The New Pemex Procurement Division
Implementation of international best practices on three main subjects.
•Alignment with Corporate Strategy • Standardization of Process and Procedures •Process Governance. • Strategic Sourcing and Category Management •Market Intelligence
Strategy
• Strategic Alliances & Joint Ventures • Suppliers Development •National Content • Suppliers Evaluation •Demand Forecast
Suppliers
• Strategic Procurement by Business Units •Procurement Implementation Strategy • National and International Public Tenders • Restricted Bids • Direct Award
•Relationships with final users
Procurement
The New Pemex Procurement Division
Implementation of international best practices on three main subjects.
•Alignment with Corporate Strategy • Standardization of Process and Procedures •Process Governance. • Strategic Sourcing and Category Management •Market Intelligence
Strategy
• Strategic Alliances & Joint Ventures • Suppliers Development •National Content • Suppliers Evaluation •Demand Forecast
Suppliers
• Strategic Procurement by Business Units •Procurement Implementation Strategy • National and International Public Tenders • Restricted Bids • Direct Award
•Relationships with final users
Procurement
The New Pemex Procurement Division
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
CPO Procurement and
Supply
Management Strategy and Business
Model Support
Development and Relations with Suppliers and Contractors
Procurement and Supply
DCPA Structure
A U.S.A. Corporation wholly owned by Petroleos Mexicanos (“PEMEX”), with the main purpose of rendering International Procurement Services to PEMEX and its subsidiaries and its affiliates (“PEMEX Group”)
• Incorporated in Delaware
• Authorized to do Business in Texas
• Operating since November 1994
PPI Pemex Procurement International, Inc.
A U.S.A. Corporation wholly owned by Petroleos Mexicanos (“PEMEX”), with the main purpose of rendering International Procurement Services to PEMEX and its subsidiaries and its affiliates (“PEMEX Group”)
• Incorporated in Delaware
• Authorized to do Business in Texas
• Operating since November 1994
PPI Pemex Procurement International, Inc.
• Incorporated in München
• Operating since January 2015
Representative Office
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
• PPI provides international procurement services to facilitate the contracting with international companies for the supply of goods and rendering of services
• PPI services allow the ultimate end customer, PEMEX to place orders directly to suppliers
• The process enables a transparent and expedited purchasing procedure for all the parties involved
• HITEC, an IT system owned by PPI, allows PEMEX to remotely access and consult information about orders and suppliers
PEMEX Procurement International
Purchasing
Negotiation of
Framework Agreements
Expediting and
Inspection
Logistics and Customs
Supplier Invoice
Processing
Supply Base Management
PPI Services
Who are we?
Antecedents Who are we? Energy Reform Who are the new actors in the industry? PEMEX Challenge
The New Pemex Procurement Division
Procurement Context DCPA Structure PPI Services Category Management
Category Management
Rigs
• Ground equipment • Modular equipment • Jack-Up Plattforms • Semisubmersibles Plattaforms
Family Categories
Fuente: Análisis A.T. Kearney y Pemex
• Line Pipe • OCTG • Special Alloys • Polyethylene
Pipelines
Ships
• Maritime Transport • Food and lodging services offshore • Transportation conditioning fluids ( Boats Loderos and
Process ) • Stimulators Boats • Product Transport • FPSO’s y FSO’s
1
2
3
• Interventions Wells, Fracturing and stimulation, Shooting, Multiphase measurement, Sensors Fund, Radioactive tracers
• Flexible tubing, Tools and Fittings, Piping Insert, Finishing Equipment, Oil Records
• directional drilling, Cement, drilling fluids, geophysical logs and Control of solids and cuts
Services and Wells Completion
• Electromechanical works, Installing Structures and Systems
• General maintenance and support • Transportation and Installation of Fixed Platforms
Maintenance e Installation
Exploration Services
• Seismic Acquisition and Seismic Processing
Explosives • Supply of Explosives and Accessories
4
5
6
7
Family Categories
Fuente: Análisis A.T. Kearney y Pemex
• Construction and maintenance of offshore pipelines • Construction and maintenance of onshore pipelines
Pipeline Construction and Maintenance (without pipe)
Earth Static Equipment
• Storage tanks • Fumaces, heaters and boilers • Separators
Components Head and Wellhead
• Acquisition and installation of heads • Trees Valves and Parts • Acquisition and Hangers Installation
• Turbo pumps (acquisition and parts) • Turbocharger (acquisition and parts) • Turbo generator (acquisition and parts)
Powered by Turbine Rotating Equipment
11
9
10
8
Family Categories
Fuente: Análisis A.T. Kearney y Pemex
• Electrical Generators • Uninterruptible Power Units (UPS) • Electrical transformers • Other Materials and Electrical Equipment (Batteries,
Switches, etc.) • Electrical panels • Electrical Substations
Electrical Equipment and Systems
• Medical Services • Medical Equipment • Medical Material • Medicines
Health Services
Environmental Protection
• Remediation of Soil and Subsoil (spills) • Management and Disposal of Hazardous and Non
Hazardous
• Process Plants Construction • Offshore Plattforms Construction
14
15
13
12
Family Categories
Fuente: Análisis A.T. Kearney y Pemex
Infrastructure Projects to Produce
• Personal Air Transport by Helicopter • Air Load Transport by Helicopter Helicópter Transport
• Oil and Gas Dehydration Service • Water Treatment Chemical Treatments services
16
17
Family Categories
Fuente: Análisis A.T. Kearney y Pemex
THANK YOU VANESSA AGUIRRE HEAD OF EUROPEAN OFFICE . PPI MÜNCHEN [email protected]