Background on Pemex and the Norwegian Government Pension Fund
Petróleos Mexicanos (Pemex), Mexico’s state-owned petroleum company, has been excluded from the Norwegian Government Pension Fund Global (GPF) investment portfolio due to concerns over corruption allegations and insufficient information provided by Pemex.
Pemex’s Corruption Concerns
According to Pemex, the Norwegian fund initiated a review process in 2014, citing alleged corrupt activities within the company during that administration. Despite Pemex providing extensive information to clarify doubts regarding directors’ involvement in corruption cases, primarily from 2017, the Norwegian fund’s council decided to exclude Pemex from its portfolio.
Declining Investment Exposure
Pemex acknowledged that the Norwegian fund had been gradually reducing its exposure to the company since several years ago due to deteriorating credit ratings and new environmental, social, and governance (ESG) criteria.
- In 2014, the Norwegian fund had approximately $600 million invested in Pemex.
- By the end of 2024, the fund’s exposure to Pemex had dropped to $40 million.
- The fund invested in Pemex for the first time in 2003, and its investment amount fluctuated significantly over the years. It reached zero between 2007 and 2010.
- In the past five years, the investment amount was less than $150 million before the Norwegian fund’s assessment.
Pemex’s Anti-Corruption Measures
Pemex stated that it has an anti-corruption system in place, meeting international guidelines. This system includes risk assessments, a regularly audited anonymous reporting service, third-party due diligence evaluations, and cooperation with national and international authorities in corruption investigations.
However, the Norwegian fund’s council believed that Pemex did not provide enough information, particularly regarding corruption allegations from 2017 that were reported in the media.
Key Questions and Answers
- Q: Who is Petróleos Mexicanos (Pemex)? A: Pemex is Mexico’s state-owned petroleum company, responsible for exploration, production, refining, and marketing of oil and natural gas.
- Q: What is the Norwegian Government Pension Fund Global (GPF)? A: The GPF is a sovereign wealth fund managed by Norwegian Government Pension Fund – Global, which invests the country’s oil wealth for future generations.
- Q: Why was Pemex excluded from the GPF investment portfolio? A: Pemex was excluded due to concerns over corruption allegations and insufficient information provided by the company regarding these allegations.
- Q: How much was the Norwegian fund’s exposure to Pemex in 2014 and 2024? A: In 2014, the Norwegian fund had approximately $600 million invested in Pemex. By 2024, this exposure had decreased to $40 million.
- Q: What anti-corruption measures does Pemex have in place? A: Pemex has an anti-corruption system that includes risk assessments, anonymous reporting services, third-party due diligence evaluations, and cooperation with national and international authorities in corruption investigations.
