HOUSTON– The decision by Mexico’s President Felipe Calderon to replace the CEO of PEMEX could lead to expanded service contracts for Western oil service firms, according to a research note by Pritchard Capital Partners.
“The long-term implications may incentivize the country to more aggressively expand efforts and thus potentially present a greater role,” the analysts wrote.
Former CEO Jesus Reyes Heroles stepped down and will be succeeded by Juan Jose Suarez Coppel, according to wire service reports. In October, Mexico’s Congress voted to allow Pemex to hire private companies to perform some tasks such as oil exploration and gave the company more leeway to borrow without central government consent.
Some of the expanded powers will be implemented in November when the board approves revised bylaws, according to wire service reports. The move to allow broader private sector participation upstream follows a decline in oil production in Mexico.