On November 18 2014 the corporate reorganisation of Mexican Petroleum (Pemex) was commenced by means of resolutions adopted by its board of directors. The resolutions approved the merger of three Pemex subsidiaries – Pemex Refinement, Pemex Gas and Basic Petrochemicals and Pemex Petrochemicals – into a single subsidiary productive enterprise called Pemex Industrial Transformation (PTI).
On April 28 2015 the incorporation resolutions of seven subsidiary productive enterprises were published in the Federal Register, including that of the PTI. The PTI incorporation resolution was set to enter into force following publication of a declaration from the Pemex board of directors in the Federal Register which confirmed the completion of all necessary legal, technical and administrative procedures for the PTI to become the universal successor in interest of all of the rights and obligations of the subsidiary entities.
The PTI incorporation resolution accordingly entered into force on November 1 2015. The PTI has thus become the universal successor in interest of all rights and obligations of Pemex's previous subsidiary entities. All contracts and legal acts entered into by the subsidiary entities before this date – as well as the property, liabilities and assets (including all rights and obligations) of these entities – are now deemed to have been transferred to the PTI.
The main purpose of the PTI will be the refinement, transformation, processing, import, export, marketing, retail, manufacture and sale of hydrocarbons, petroleum products, natural gas and petrochemicals. This includes:
- the storage, transportation and distribution of these products; and
- the incorporation of affiliate companies and participation in joint ventures and partnerships with private parties.
Although it is not entirely clear from the PTI incorporation resolution or that of Pemex Logistics (which became effective on October 1 2015), in principle, the PTI will retain title to all midstream and downstream infrastructure assets held by the subsidiary entities while Pemex Logistics will render logistical services to the PTI and other enterprises and Pemex joint venture companies.
For further information on this topic please contact Rogelio López-Velarde, Amanda Valdez, Daniela Monroy or Diego Campa at López Velarde, Heftye y Soria by telephone (+52 55 3685 3334) or email ([email protected], [email protected], [email protected] or [email protected]). The López Velarde, Heftye y Soria website can be accessed at www.lvhs.com.mx.
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