Pemex Says Savings Will Total $1.45b by 2018

Mexico's state-owned oil company Pemex, grappling to stem an output slide amid crashing prices, said on Monday it expects to save more than 21.3 billion pesos ($1.45 billion) by consolidating the procurement process by 2018.

 

The Mexican oil firm has more than halved its number of procurement offices, from 120 to 51, and will further reduce the number to between 20 and 25 by the end of this year, the company said in a statement.

 

The company said about a third of the savings from streamlining the purchase of goods and services was already achieved last year, while the remainder are expected by 2018.

 

With international oil prices slumping to five-year lows, oil companies are under increasing pressure to reduce costs.

 

Pemex in particular is struggling to reverse a decade-long slide in crude production and exports after a sweeping energy overhaul finalized last year ended its long-standing monopoly.