Background on Ángel Cid Munguía
Ángel Cid Munguía, a seasoned petroleum engineer, has been confirmed once again as the head of Pemex Exploración y Producción (PEP), Mexico’s state-owned oil giant. Cid Munguía took the helm of PEP in early May following Néstor Martínez’s departure from the position. He previously led the portfolio until the end of former President Andrés Manuel López Obrador’s administration, which transitioned power to President Claudia Sheinbaum on October 1.
Pemex’s Struggles and Cid Munguía’s Return
Cid Munguía’s return to Pemex comes amidst the company’s challenges in curbing its declining crude oil production, which fell by 11.3% year-over-year to 1.615 million barrels per day (bpd) by the end of Q1, including partners. Cid Munguía’s appointment aims to address these production challenges and revitalize Pemex’s operations.
New Appointments at Pemex
In addition to Cid Munguía’s confirmation, the board of directors also approved Ulises Hernández for the subdirectorship of Exploration. Hernández has a long-standing career in Pemex and previously led its commercialization arm, known as PMI, during López Obrador’s administration.
Pemex Board Composition
The board of directors includes representatives from the Ministries of Energy, Finance, and Environment, as well as the leadership of the state-owned electric company, CFE. These individuals play crucial roles in guiding Pemex’s strategic decisions.
Cost-Reduction Plan through Restructuring
The board of directors also approved a new organizational structure for Pemex, one of the world’s most indebted petroleum companies. The plan aims to cut costs by approximately 3,500 million pesos (USD 181.36 million).
Cost-Reduction Strategy
According to documents reviewed by Reuters, the cost-saving strategy will be implemented through reducing administrative areas, eliminating redundancies, and decreasing the workforce. However, specific details regarding personnel reductions have not been disclosed.
Pemex’s Financial Situation
Despite the cost-reduction efforts, Pemex remains far from its target of pumping 1.8 million bpd set by President Sheinbaum for her term. The company’s current production stands at 1.615 million bpd, as per its own data, last achieving the target in March of the previous year.
Key Questions and Answers
- Who is Ángel Cid Munguía? Ángel Cid Munguía is a seasoned petroleum engineer who has been confirmed as the head of Pemex Exploración y Producción (PEP).
- Why was Cid Munguía appointed? Cid Munguía was appointed to address Pemex’s challenges in curbing its declining crude oil production and revitalize the company’s operations.
- Who else was appointed at Pemex? Ulises Hernández was appointed as the subdirector of Exploration at Pemex.
- What is the new cost-reduction plan for Pemex? The new organizational structure aims to cut costs by approximately 3,500 million pesos (USD 181.36 million) through reducing administrative areas, eliminating redundancies, and decreasing the workforce.
- What is Pemex’s current financial situation? Despite the cost-reduction efforts, Pemex remains far from its target of pumping 1.8 million bpd set by President Sheinbaum for her term, with current production at 1.615 million bpd.
