HOW PEMEX AND THE PUBLIC INTEREST ARE SERVED
This report provides an overview of Pemex’s network of offshore companies, indicating benefits, criticism as well as potential harm to Pemex and the public interest if market governance and oversight are inadequate.
The first section of the body of this report deals with the origin of the network of offshore companies and the legal, commercial and financial logic that lay behind its formation and evolution, which took place over two decades, starting in the late 1980s.
The second section examines the origin and development of PMI Comercio.
A third section points to the benefits that Pemex and the public interest receive from having the PMI Group of Companies, among other offshore affiliates.
A fourth section deals with some of the criticism that PMI and Pemex’s other offshore companies have received, principally from within Mexico.
A fifth section identifies ways that the offshore affiliates can do harm both to Pemex and the public interest if sound governance practices and public oversight are not present.
A sixth section of the body of the discussion concerns how—if at all—Pemex’s affiliates may engage with the Mexican press in a constructive manner.
The report is meant to correct, in some measure, the widely held impression in some quarters in Mexico and abroad that the offshore affiliates of Pemex, which operate outside the laws of Mexico, are somehow illegal and against the public interest.
Media reports in Mexico have focused on PMI, and have typically criticized its structure and operations. In this report we go beyond PMI to include MGI and a few other entities by way of illustration.