Pemex Approves Five-Year Plan to Expand Overseas

The board of Petroleos Mexicanos, the world’s fourth-largest oil producer, approved the company’s five-year business plan to expand its international presence, including buying U.S. refineries.

The board of the state-owned company known as Pemex approved its medium-term plan for 2013 to 2017, Fluvio Ruiz, a director, said today in a phone interview from Mexico City. A new “internationalization strategy” to buy U.S. refining assets and join overseas exploration projects was integrated in the plan, he said.

Pemex is seeking to gain deep-water drilling experience outside Mexico to reverse seven years of output declines, Ruiz said. The company is also planning to boost refining capacity by purchasing a refinery or a stake in the U.S. as asset prices can be lower than building a new complex.

“The approval of the internationalization strategy will expedite these kind of projects,” Ruiz said. Among the plants available for sale in the U.S. are BP Plc’s Carson and Texas City refineries.

Ruiz, who is one of the four independent directors added to Pemex’s 15-person board in 2009, said May 10 that some of Pemex’s previous attempts to expand outside Mexico failed because the company lacked an international strategy. The 5-year plans are reviewed and updated annually.

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