social responsibility report

Transcription

2008 SOCIAL RESPONSIBILITY REPORT PEMEX
www.pemex.com
2008
SOCIAL
RESPONSIBILITY
REPORT
GRI 2.3, 2.8, 2.1, 2.4, 2.6, 2.2
In order to mitigate the greenhouse gas emissions from the elaboration and dissemination of this Report, staff from Petróleos Mexicanos participated in the acquisition of 40 metric tons of carbon
dioxide. These represent the estimated amount to compensate the
carbon ecological footprint.*
Maudiel Aguilar Domínguez
Diana Alvarez Gómez
Adalberto Arroyo Ramírez
Martha Avelar Villegas
Pedro Edmundo Aguirre Castro
Jaime Alba González
Lamberto Alonso Calderón
Oscar Alva Rodas
Antonio Álvarez Moreno
Teresa Aragón Gómez
Armando Arenas Briones
Jorge Arriaga Cervantes
Francisco Arellano Urbina
Juan Avila González
José Antonio Barbero del Río
Luis Betancourt Sánchez
Javier Bocanegra Reyes
Andrés Brugmann Balmaseda
Victoriano Sinue Calderón Merino
Guillermo Camacho Uriarte
Ma. De las Nieves Carbonell León
Ulises Cardona Torres
Heira Jasive Castañeda López
Yuri Alexei Carreño
Jose Manuel Carrera Panizzo
Ernesto Ceja Romero
Laura Chong Gutiérrez
Carlos Coronado Gallardo
Roberto de Anda Carrillo
Bernardo de la Garza
Jorge de los Reyes Guerrero
Carlos de Regules Ruiz-Funes
Gabriela Dorantes Lara
Oscar Duarte Morales
Adrián Elizalde Sesma
Alejandro Erazo Brito
Iván Angel Esquivel
Rodrigo Favela Fierro
Enrique Fernández Agráz Sánchez
Francisco Fernández Lagos
Jorge Fernández Venegas
Julio César Ferrer Soto
Jorge García de la Cruz
Isabel García Jiménez
Guillermo García Reynaga
Juan Carlos García Rubio
Gilberto García Vázquez
Juan Evencio Guzmán Salinas
Pedro Ismael Hernández Delgado
José René Hernández Pérez
Cruz Ernesto Hernández Ramírez
Rosa Amalia Juárez Guerrero
Enrique Karam Mesquida
Raúl Livas Elizondo
José Luis Luna Baez
Luis López González
Luis Felipe Luna Melo
Juan Antonio Magdaleno
Esteban Manteca Melgarejo
Ricardo Manzo García
Jimena Marvan Santin
Fidel Inez Mejía Cuautla
Eduardo Melo Flores
Porfirio Méndez Romero
Mónica Mendoza Archer
Marcelo Mereles Gras
Miguel Miranda Mendoza
Harim A. Montiel Prieto
Miguel Ángel Morales Mora
Héctor H. Morales Quintana
Alfonso Morales y Favela
Marco A. Murillo Soberanis
Jose de Jesús Nakakawa Tsutsumi
Isaías Nicolás Navarro Roman
Mario Nieto Garza
Mario Nuñez Díaz
Hector Ochoa López
Moisés Orozco García
Armando Orozco Zarate
Roberto Ortega Lomelín
Salvador Ortíz Vertiz
Luis Manuel Padilla Lamadrid
Julio Pastor Nieto
Carlos Perea Mendoza
Javier Pérez Barnes
Margarita Pérez Miranda
Sergio Eduardo Picazo Garcés
Jesus Puente Treviño
Carlos Rábago Saldivar
Víctor Ragasol Barbey
Luis Manuel Ramírez Araujo
Carlos Ramírez Fuentes
Montserrat Ramiro Ximénez
Guillermo Regalado Nuñez
Jesús Reyes Heroles G. G.
Dolores Edith Rodríguez Alvarez
José Inocencio Rodríguez Barrera
Mariano Ruíz-Funes
Armando Salgado Fernández
Raúl Sánchez Angeles
Patricia Sánchez Saucedo
Antonio Sepúlveda Gómez
Rodolfo Tapia
Celina Torres Uribe
Francisco Toscano Martínez
Robertony Tovilla Ruiz
Jose E. Tudon Martínez
Sergio Valladares
Juan Pedro Vargas
Diana Vázquez Monterrosa
Víctor Manuel Vázquez Zárate
* This information is out of the assurance scope.
Your opinion matters
Acronyms and Abbreviations
Glossary
118 119 120 120
United Nations Global Compact Principles:
“Communication on Progress”
GRI INDEX
Statistical Appendix
Assurance Letter
106 111 112 116
A Single Management System: PEMEX-SSPA System
98
Quality of Products and Services
Commitment to the Oil-Producing Communities
Environmental Performance
72 80 88
Environment Protection
62
Development of pemex Employees
CITIZEN PARTICIPATION
56
Climate Change
PRINCIPLES THAT GOVERN THIS REPORT
24 32 44
Health and Safety
INTERVIEW WITH THE CEO
12
Transparency and Dialogue
10
Supply Security
8
Development of the Nation
6
THE 10 CHALLENGES OF PEMEX
1
OVER THE LINE
CONTENTS
Design: X_Design, S.C.
Key Executives
THE GENERAL DIRECTOR’S OFFICE
Chief Executive Officer
SUBSIDIARIES ENTITIES
Carlos A. Morales Gil
Director General, PEMEX-Exploration
and Production
José Antonio Ceballos Soberanis
Director General, PEMEX-Refining
Roberto Ramírez Soberón
Director General PEMEX-Gas
and Basic Petrochemicals
Rafael Beverido Lomelín
Director General, PEMEX-Petrochemicals
Head Office
HEAD OFFICE
Rosendo Villarreal Dávila
Corporate Director of Management
Refinery
Petrochemical Complex
Gas Processing
Northern Region
Southern Region
Esteban Levin Balcells
Chief Financial Officer
Southwestern Marine Region
Northeastern Marine Region
Raúl Alejandro Livas Elizondo
Corporate Director of Operations
Jorge José Borja Navarrete
Corporate Director of Engineering
and Project Development
Gustavo Ernesto Ramirez Rodriguez
Executive Comptroller
HYDROCARBONS PRODUCTION INFRASTRUCTURE
ENTITY
TYPE OF INFRASTRUCTURE
2006
2007
2008
Exploration and Production
Oil production fields
Extraction wells
Ocean platforms
Refineries
364
6,080
199
6
352
6,280
215
6
344
6,382
225
6
77
77
77
7,554
12
19
7,940
10
19
8,351
12
20
LPG distribution terminals
20
20
19
Petrochemical complexes
8
8
8
Refining
Petroleum products storage and
distribution terminals
OTHER EXECUTIVES
Maria del Rocío Cárdenas Zubieta
Director General, PMI Comercio Internacional
Heber Cinco Ley
Director General, Mexican Petroleum Institute
Service stations
Gas and Basic Petrochemicals Gas Processing Centers
Cryogenic Plants
Petrochemicals
On the Field
PEMEX is a government controlled body that was created as a decentralized government agency of the Federal Public Administration, in conformity with
Mexican Law and in accordance with the Decree published on June 7, 1938. PEMEX’s Head Office is located in Mexico City1 with its own legal identity and
patrimony, and its purpose is to lead the nation’s central and strategic development activities in the state’s petroleum industry. The Company’s Head Office
is responsible for PEMEX’s Institutional Strategy.
PEMEX is comprised of four Subsidiaries that are engaged in exploration, production, transformation and marketing activities related to crude oil and natural
gas in the domestic and international markets, as well as refined products, liquefied petroleum gas and petrochemicals. It also undertakes its internal trade
activities through PMI Comercio Internacional.
1
Av. Marina Nacional #329, Colonia Huasteca, CP 11311, México, D.F.
GRI 2.5
Principle Products
Crude oil (Maya, Istmo y Olmeca) and natural gas.
PEMEX-Exploration and Production (PEP)
Explores and exploits the crude oil and natural gas reserves in Mexico’s
four exploration and production regions: North and South in the continental
territory, Northeast and Southwest Marine oil platforms in the maritime
territory of the Gulf of Mexico.
OUTSTANDING INITIATIVES
Gulf Tertiary Oil Project
Development of Local Suppliers
Immediate Municipal Action Plan
Biosphere Reserve of Pantanos de
CentlaSelva Lacandona Project
2008 Relevant Aspects
Planned Actions for 2009
Oil production decreased 9.2% in relation to 2007,
producing an average of 2,792 barrels per day (Mbd),
mainly because of the decline of the Cantarell oil field.
Cantarell
Investment programed during 2009 of up to 42.1billions
of pesos.
With an estimated crude production of approximately 700
Mbd for 2009 and an annual average of 400 Mbd for the
2009-2017 period.
KMZ
Investment programed during 2009 of up to 24.4billions
of pesos.
With an estimated crude production of 800 Mbd for 2009 and
an annual average of 700 Mbd for the 2009-2017 period.
ATG
Investment programed during 2009 of up to 25.9 billions
of pesos.
With an estimated crude production of 70 Mbd for 2009 and
an annual average production of 400 Mbd and 500 MMpcd of
crude and natural gas, respectively, for the 2009-2017 period
For this to happen, it is necessary to drill approximately 1,200
wells per year.
Deep Water
The main activities for the 2009-2017 period are:
• Drilling and completion of 60 exploration wells and
• An annual average acquisition of 7,300 km2 of
3D Seismic
The total natural gas production increased 14.2% with
respect to 2007, from 6,058 to 6,919 MMpcd, mainly due to
higher volumes from Cantarell’s transition zone and higher
production of the projects Ku-Maloob-Zaap (KMZ), Crudo
Ligero Marino and Ixtal Manik.
Associated natural gas production increased 25.4%, mainly
due to higher volumes from Cantarell’s transition zone
and higher production levels of the projects KMZ, Delta del
Grijalva, Costero and Ixtal-Manik. The production of
non-associated gas decreased 0.5%, mainly due to the
Burgos and Lankahuasa projects.
PEMEX-Exploration and Production made a net profit of
23.5 billions of pesos, 3.5 billions of pesos higher than
the previous year, due mainly to higher prices in crude
oil and natural gas.
PEMEX 2008
2
The number of operating wells increased by 303 as
compared to 2007, primarily due to the opening of
extraction wells in the Gulf Tertiary Oil Project (PATG,
Spanish acronym).
The number of non-associated gas wells increased 2.0%,
giving a total of 3,120, as a result of the North Region’s
activities in the Burgos and Veracruz’ projects.
The number of ocean platforms increased 4.7% with
respect to 2007, from 215 to 225. These platforms provide
storage, processing, control, accommodation, drilling and
communication services, among others.
During 2008, PEMEX-Exploration and Production concluded
189 mutual benefit works (OBM, Spanish acronym), with
an investment of 761.96 MM$ in 56 municipalities in the
states of Campeche, Chiapas, Nuevo León, Puebla, San Luis
Potosí, Tabasco, Tamaulipas and Veracruz.
The natural gas production in Lakach’s reserves is
estimated to begin in 2013 with a production level of
approximately 400 MMpcd.
Principal Products
Pemex Premium UBA: low sulfur content and higher octane rate, developed for automobiles with catalytic converter and high compression engines. Pemex Magna: lead-free gasoline produced for automobiles
with catalytic converter and high compression engines that require at least 87 octanes. Pemex Diesel: fuel for heavy vehicles and mass transportation systems with high compression engines. Special Marine
Diesel: fuel for vessels with Diesel engines. Low Sulfur Industrial Diesel: industrial fuel with low emission of pollutants. Fuel oil: industrial fuel for burners, heaters, boilers, electric generator, and major vessels.
Aviation fuel: fuel for aircrafts equipped with Otto cycle engines. Turbosine: fuel used in aircrafts with turbine engines. Paraffins: raw materials used in the lubricating oil industry, among others. Others: naphta fuel,
gas solvent, oil coke, citroline, asphalts and basic lubricants.
PEMEX-Refining (PREF)
Converts the crude oil into general-use fuels such as gasoline, turbosine,
diesel and fuel oil in the six refineries located in the states of Nuevo León,
Tamaulipas, Guanajuato, Hidalgo, Veracruz, and Oaxaca and distributes these
fuels across the country through 77 storage and distribution terminals.
2009 Planned Actions
The total crude process decreased 0.7% with respect to
2007, mainly due to out of specifications water and salt
content, excess of fuel oil inventories in the Tula refinery,
and higher maintenance activity than programed.
• Announcement of the location of PEMEX’s new Refinery
During 2008, the oil fuels decreased 1.4%, in comparison
with 2007, from 1,511 to 1,490 Mbd, primarily due to
lower crude processing. The fuel oil production decreased
because of a higher use of deep conversion equipment
use, and GLP’s because of a lower production of natural
gas liquids.
The number of service stations increased to 8,351 on
December 31, 2008, 5.2% more than the already existing
7,940 on December 31, 2007.
• Supply of low sulfur content fuels first to every
metropolitan area, and then to the rest of the country,
in order to distribute UBA fuels for public mass transportation
systems, private and school transportation
Ethanol in Gasoline Pilot Test
The Program of PEMEX-Refining to Renovate
its Distribution Fleet
Valorization of Used Catalyzers in the
Refining Processes
• Conclusions of the rehabilitation, upgrading and
maintenance of the sulfur recovery plants at the
refineries in Salamanca and Salina Cruz
• The wastewater treatment plant constructed at the
Madero refinery to start its operation
• Conclusion of the water efficiency diagnosis in
critical facilities
PEMEX-Refining suffered net losses of 119,500 MM$,
73.8 billions of pesos more than the loss registered
during 2007, as a consecuence of a decrease in the
refining variable margin.
Social Responsibility Report
In industrial matters, the National Refining System (SNR,
Spanish acronym) processed 1.261 MMbd, practically
the same amount as the previous year. However, despite the
international situation characterized by high crude prices,
during 2008, the refining variable margin was of only 2.30
dollars per barrel, in comparison with 7.0 dollars during 2007.
3
On July 30, 2008, PEMEX sent to the National Congress
a study on the viability of a new refinery in Mexico. The
project considers a coking configuration refinery with
a capacity of 300 Mbd of Maya crude and capacity to
produce 142 Mbd of ultra-low sulfur gasoline and 94 Mbd
of intermediate distillation products.
GRI 2.5
Principal Products
Natural gas: fuel that is for both domestic and industrial heat generation LP Gas: mix mainly composed of propane and butane, for domestic use Basic
petrochemicals: ethane, propane, butane, pentane, hexane, heptane, raw material for lamp black, naphthas, methane. Methane is also used as raw material for
petrochemical processes. Sulfur: byproduct from the sweetening of sour gas and oil refining.
PEMEX-Gas and Basic Petrochemicals (PGPB)
Processes natural gas and develops basic petrochemical products and liquefied gas in its ten
Gas Processing Centers (CPG, Spanish acronym) in the states of Tamaulipas, Veracruz, Tabasco
and Chiapas, and is responsible for transporting and marketing these products.
PEMEX 2008
4
Succesful Sustainable Projects at Burgos’
Integral Asset
Remediation of the Environmental Liability in
Texistepec
Planned Actions for 2009
The natural gas processing on mainland decreased 1.0%
with respect to 2007, as a consequence of less availability
of humid sweet gas and condensed products.
PEMEX-Gas and Basic Petrochemicals made a net profit
of 2.3 billions of pesos, 2.7 billions of pesos less in
comparison with the reported in 2007. This is primarily due
to lower processing levels along with higher LP Gas prices
within the international market
On December 4, 2008, PEMEX announced the construction
of the Tamazunchale - San Luis de la Paz - San José Iturbide
gas pipeline in Guanajuato to transport 400 MMpcd of
natural gas towards the center and west of the country
in order to supply the new Federal Electrical Commission
(CFE, Spanish acronym) plants operating in the Valley
of Mexico and Salamanca. The project will be developed
by the private sector, with an estimated investment of
7.1billions of pesos and will start operations in 2011.
The certifying company Bureau Veritas recertified PGPB’s
Quality Management System ISO-9001: 2000 version.
The aforementioned certification covers the processes
of production, transportation, marketing, planning,
human resources, maintenance, safety, supply, finance,
accounting and costs.
PGPB develops cogeneration projects on energy efficiency
under the Clean Development Mechanism (CDM) with an
estimated reduction of 484,829 tCO2e/year.
DCO/PGPB together develop cogeneration projects (CDM
projects) with an estimated reduction of 962,456 tCO2e/year.
The PGPB Gas Transportation Pipelines and the
Identification and Measurement of Fugitive Gas Emissions
in Orizaba, Ver. and Monterrey, N.L. pipelines are among the
2008 projects supported by Methane to Markets.
• Construction of a cryogenic plant at CPG Poza Rica
with a processing capacity of 200 MMpcd to process
the increasing offer of humid sweet gas from ATG. The
estimated investment is of 2.7billions of pesos
• Installation of a liquid-elimination system in the regions
of Nuevo Laredo and Veracruz
• Installation of a Nitrogen Rejection Unit (NRU) in the
Southeast region
• Implementation of natural gas pipelines infrastructure
projects that connect to the National Pipeline System in
coordination with the regulatory entities
Principal Products
Methane Derivatives: ammonia and methanol Ethane Derivatives: raw materials for the plastics industry Aromatics: petrochemical chain for the production of
inputs for solvents, sealants, and paint industry; among others Propylene and derivatives Others: glycols, reformed fuel, oxygen, hydrogen, nitrogen, hydrochloric
acid, muriatic acid, hexane and heptanes.
PEMEX-Petrochemicals (PPQ)
Develops and markets a variety of raw materials for the country’s chemical and petrochemical
industries, including methane and ethane byproducts, manufactured in the eight Petrochemical
Complexes (CPQ, Spanish acronym) in the states of Chihuahua, Veracruz, Hidalgo, and Puebla. PPQ
is responsible for transporting and marketing these byproducts.
2009 Planned Actions
4.16 MMt of petrochemicals were produced during 2008,
7.0% more than the previous year.
• Design and promotion of practical schemes of
association with the private sector in order to develop low
investment projects, such as PPQ-UNIGEL (Acrylonitrile)
The petrochemical production increased 1.8% with
respect to 2007, from 11,757 to 11,973 Mt. This variation
is essentially due to a higher ammonia production as a
result of a higher demand for urea; and higher methanol
production because of a favorable market situation. These
increases were partially counteracted by lower volumes of
vinyl chloride, paraxylene and propylene.
PEMEX-Petrochemicals suffered net losses of 18.7 billions of
pesos, 2.6 billions of pesos more than the loss registered
during 2007. This was caused by an increase in the price of
raw material and the cost of reserves for labor liabilities caused
by the application of NIF D-3 (Employee Benefits).
Cogeneration Projects
Jaguaroundi Ecological Park
Substitution of Chlorine Biocide
by Chlorine Dioxide
Conservation Actions in Alvarado
Wetlands, Veracruz
• Construction of a cryogenic plant at CPG Poza Rica with a
capacity of 200 MMpcd to process the increasing offer of
humid sweet gas from ATG
• Continue plans for the Project for the Modernization
and Capacity Increase of the Aromatics Train at the CPQ
Cangrejera, in Coatzacoalcos, Veracruz. Operations are
expected to begin in 2012
• Collaboration of PPQ on UNEP’s creation of a guide about
life cycle analysis in the Oil Industry in Latin America
Customer satisfaction level with respect to response to
complaints monitoring was of 0.90 throughout 2008,
which means “good” (score between 0.86 – 0.90).
5
One of PEMEX-Petrochemicals’ main works is the Project
for the Modernization and Capacity Increase of the
Aromatics Train at the CPQ Cangrejera, in Coatzacoalcos,
Veracruz, with an estimated investment of 553 MMUS$. By
December 31, 2008, the physical progress was of 6.5%.
Interview with the CEO
Jesús reyes heroles g. g.
TOWARDS A LEADERSHIP BASED ON RELIABILITY
PEMEX 2008
6
To mark the publication of the tenth version of this Report, we interviewed Dr. Jesús Reyes Heroles G.G., CEO of Petróleos Mexicanos, in order to get his opinion on the challenges
facing the country’s largest company and how it intends to deal with them.
Q. In the present context, what is the company’s strategic aspiration?
CEO. The aspiration of Petróleos Mexicanos is to continue being the axis of energy development in the country. The main challenge for PEMEX is to increase its capacity to provide
services to Mexico and continue being a central and reliable driving force of the country’s economic activity. In fact, the company’s Vision is: To be a public company, supplier
of energy, sustainable, preferred by its customers, nationally and internationally recognized for its operational excellence, transparency, accountability and the quality its
people and products, with presence and leadership in the markets it participates in.
During the 60’s and 70’s in the past century, PEMEX marked the direction of industrial activity in Mexico, as well as that of the national petrochemical industry. Fifteen years
later, circumstances made the tax load such that it did not allow the company to have the resources necessary to continue growing at an accelerated pace. As a result of
this, the basic operational capacities of the company were affected. And even more lamentable was the loss of its capacity for leadership, renewal, modernization and its
self-confidence. Neither PEMEX nor the Government of Mexico should have allowed this. We are determined to recover this role.
Therefore, the main objective currently is to recover the capacity for growth that will allow us to regain this leadership position.
The energy reform, the result of an initiative by President Felipe Calderón, was passed last year by the three main political forces represented in Congress, and provides
PEMEX with multiple opportunities to achieve this objective, to be strongly instrumental in the construction of a winning Mexico.
Q. What are the main aspects that define this new leadership sought by the company?
CEO. The main feature that defines it is maintaining the trust in the company of all those with whom Petróleos Mexicanos shares the future.
For this, the situation and context of PEMEX should be taken into consideration. Both are different to those of the past, to other international companies in the industry and,
even, to other Mexican public companies.
Hence the relevance of the approval of the Energy Reform, which represents a Mexican solution to improve the regulatory framework in which PEMEX operates. As a result of
its approval, Petróleos Mexicanos will be able to adopt best practices in terms of corporate governance. The company now has more operational and financial flexibility, a
more appropriate contracting framework for its activities and a tax regime that recognizes the particularities and complexities of PEMEX’s tasks.
The reform also constitutes an expression of trust by the Mexican society towards its national oil company. This trust arises from the historical trajectory of PEMEX, since it
continues to comply in a timely and efficient manner with the supply of hydrocarbons and fuel; from its attitude of solidarity towards the communities where it operates.
Therefore, the Reform represents a challenge and a responsibility of great significance for PEMEX. All of us who work in the company should implement this reform with
efficiency, imagination, promptness, and commitment to Mexico and to Petróleos Mexicanos.
After the passing of the Energy Reform, citizens view PEMEX differently. They expect different results from the company, an expectation that places transparency and fighting
against corruption as central elements of its institutional strategy.
The second key aspect of this new strategy is environmental. Today, nobody in PEMEX considers environmental aspects as secondary or merely fashionable. Nowadays, in
energy companies, the conservation of the immediate surroundings and global environmental aspects are a central part of business management. Thus, the environmental
factor is as relevant as the safety of operations in PEMEX. Therefore, the company should be characterized by its leadership in both aspects, nationally and internationally.
Unfortunately, sometimes the great driving forces to generate improvements and changes in companies arise from events or situations that underline the need for action in a
different and more decisive way. The accident at the Cactus plant in 1996 established the guidelines for a new operational safety culture in PEMEX, which led it to achieve, in
2008, the lowest accident rate since the Safety, Health and Environmental Project System was launched. This is not the result of a one-day effort, nor a one-person effort,
but of the work done during more than one decade and the commitment of the whole organization, which has changed its culture. As a consequence, today PEMEX can
firmly state that safety is an element that has been introduced in its management and business model. PEMEX is much more prepared to face the risks of its daily operations,
but this does not imply being satisfied: regarding accident rates, the goal is zero.
In relation to the environment, it is also necessary to consolidate the conservation and eco-efficiency criteria in all activities and business projects. The great challenge is to
improve environmental management, but neither Mexico nor PEMEX have a decade to achieve this. It is urgent to extend and broaden the actions taken by the company in
this regards. Thus, efforts should be doubled to ensure that, in the near future, environmental commitment becomes part of the recognizable performance of PEMEX.
Q. In the nine previous reports by PEMEX, we have read about the constitution and consolidation of these new responsibilities: how do you plan to boost this new leadership
model in the organization?
CEO.Everyday, we work to specify and disseminate a clearer idea of where the company is to evolve. However, there is still a long way to go. Defining a leadership model is
simpler than putting it into practice, and much easier than making the results perceptible to the PEMEX community and the citizens. It is critical for directors, employees and
workers to be convinced and fully able to carry out the ambitious project that the Mexican society has entrusted to all those who work in PEMEX.
Petróleos Mexicanos must make every effort to recover the presence of its engineers in the classrooms of national universities. It is necessary that technicians at PEMEX and
the Mexican Petroleum Institute contribute to international publications of great prestige. The company is transforming its recruitment schemes in order to attract true
professionals, offering competitive conditions and career plans, where the main attribute is a commitment to excellence in management and long-term value creation, as well
as to the company’s mission and vision.
Complete generations of workers with great value to PEMEX reach retirement conditions every year. Therefore, it is essential to keep them motivated daily, so that the
company can hold on to them as long as possible to take advantage of their talent and experience, in order to transmit these to the following generation.
PEMEX should recover the capability to address new generations with attractive proposals, to transmit both the central role of Petróleos Mexicanos in the development of
Mexico and the spirit of leadership that should motivate all oil workers.
Q. Is there any current project that shows this new way of doing things sought by PEMEX?
CEO. Creativity is beginning to characterize many of the current projects of Petróleos Mexicanos. An example of this may be the exploitation project in Chicontepec, known as Gulf
Tertiary Oil. The success of this project requires a radical change in the way the company acts. In order to make the productive activities of PEMEX viable in Chicontepec, it is
necessary to undertake a sustainable community development project. The program is focused on maximizing local employment while developing the technology and
infrastructure needed to create higher value for the company and the community, in terms of the environment.
This project is the first that was designed in accordance with the above-mentioned approach, but is not the only one. This project is also a milestone for PEMEX.
Q. Making a balance of the period which this report refers to, what is your appraisal for the year 2008?
CEO. Last year there were mixed results. In terms of crude oil production, the results were not good; this was due to a combination of very particular and incidental factors,
though. Cantarell stopped producing 236 mbd and total production decreased 451 mbd on average compared to the year before. On the other hand, it was an excellent year
regarding exploration. The reserve replacement rates for crude improved more than many years ago: 102% for 3P and 71.8% for proven reserves (1P), in comparison with
60% and 41% in 2006, respectively. This is a great achievement for the company.
In 2008 some important projects started to materialize, especially in refining. After two years of work to implement a Comprehensive Project Development System (SIDP,
Spanish acronym), of promoting and achieving changes in the regulatory framework in order to improve the bid processes and works execution, advances can be shown in
projects such as “clean fuels”, plant reconfigurations and new capacity, among others.
In 2008, PEMEX operated with a tax regime more appropriate to its activities. This is important for the company since the necessary resources were available promptly to
invest in PEMEX’s projects. The regime authorized during 2008 for 2009 recognizes that the new projects of exploration and production are more expensive than those
developed in the past.
Last year was also good regarding labor relationships. The transparency that characterized the negotiations of 2007 and 2008 has facilitated a frank and constructive
dialogue between the company and the Mexican Republic Oil Workers Union (STPRM, Spanish acronym). The agenda agreed upon with the union is the basis for joint
advances in key matters for the future of the company and it shows the desire of both parties to engage in dialogue. These are promising signs for the review of the collective
agreement in July 2009.
Q. Much has been said and written about the Reform; according to your understanding, what are the matters that will most influence the strategic design of PEMEX?
CEO. The year 2008 will be remembered as the year of the Energy Reform, of PEMEX´s reform.
During the discussion process on said Reform, during which PEMEX provided information on its needs with transparency and timeliness, the Mexican society demanded that
Petróleos Mexicanos should be given an opportunity to improve. This opened the door for the Reform initiative, presented by President Felipe Calderón, to evolve and yield to
significant changes for PEMEX. The reform was mainly a response to the need for solving the future supply of hydrocarbons and fuel in the country, but it goes further.
When analyzing the Energy Reform, there is no doubt as to how society perceives the solution to the issues facing PEMEX: with greater transparency, participation and
responsibility. Efficiency programs, operational improvement and financial strengthening are the central part of this Reform. Undoubtedly, the priority of these challenges in
the business agenda has increased from the very moment of the Reform’s approval.
In addition, the Petróleos Mexicanos Act provides instruments aimed at achieving greater commitment from the company to society and, in the same way, from society to the
company’s future. Clear examples of this are, on one hand, the national suppliers’ development program and, on the other hand, the population’s participation in PEMEX’s
funding, through the “citizen bonds”.
The former is due to a historical demand of small and medium-size Mexican companies, who want to participate more in the activities and projects of PEMEX. PEMEX now
has the power granted by this Act to boost the suppliers’ development program, with special attention to national suppliers, which will enable setting medium and long-term
commercial relationships, as well as favoring the strengthening and development of small and medium-size companies to supply and build PEMEX.
The citizen bonds, whose performance will be linked to the financial results of Petróleos Mexicanos, will allow for a greater societal oversight on the operation and
performance of the company. Besides, this instrument will arouse the interest of many Mexicans to better understand the effect that decisions by the government agencies
and regulatory entities have on the company’s economic development and, therefore, on the return of the bond holders. The Petróleos Mexicanos Act provides for the
designation of a Comptroller, who will be a member of the Board of Directors of PEMEX, to be responsible for taking care of the bondholders’ interests.
Q. In your opinion, how will the Petróleos Mexicanos we will see in the following years be?
CEO. PEMEX will be a leading company once again. Its leadership will be focused on generating trust in its operational capacity, performance, results, financial strengthening and
response to customers’ needs; it will also gain the trust of the Mexican population in general on the transparency in its management and, especially, the quality and honesty
of its people. This will confirm people’s perception that PEMEX is there whenever it is needed.
However, it is also essential that oil workers have faith in themselves. None of the results expected from PEMEX by the society will be possible if those who should achieve
them do not believe in their own capacity to do so, if they do not acquire a feeling of commitment in this respect.
For the year 2012, PEMEX will be a company with more international presence and acknowledgement, with a human team that will be enriched, motivated and able to
participate in businesses that make Petróleos Mexicanos an admired, robust and solid company that future generations of Mexicans feel proud of.
7
GRI 3.6, 3.3, 3.1, 3.5, 2.3,
4.4 a 4.17, 3.2, 3.9, 3.11, 3.8, 3.7, 3.10
Principles that Govern this Report
The purpose of the Social Responsibility Report is to measure, disclose and
account for information to be given to the internal and external stakeholders of
PEMEX and its four Subsidiaries regarding sustainable development goals. It is
intended to provide a balanced and reasonable annual representation of the
company’s sustainable actions.
• GRI G3 Sustainability Reporting Guidelines from the Global
Reporting Initiative (GRI)
Within a sustained practice of transparency and accountability adopted by the
organization, the 2008 Social Responsibility Report of Petróleos Mexicanos is
hereby presented for the reader’s consideration. This Report aims to inform
every year about its sustainable management and development, including
economic, environmental and social aspects of its Subsidiaries and Head Office.
For this reason, several issues are identified as material for their importance to
the Organization, during the period of January the 1st to December the 31st 2008.
The selection of the issues reported and the quality assurance of this Report are
based for the fourth consecutive year on international criteria, such as the
AA1000 Standard promoted by AccountAbility, the GRI G3 Sustainability
Reporting Guidelines of the Global Reporting Initiative (GRI), and the Principles of
both the Extractive Industries Transparency Initiative (EITI) and the Global Compact
from the United Nations. All the above are considered by companies interested
in Sustainability Reporting as the most commonly used and accepted criteria
when presenting their Report to stakeholders, to society and to be used for their
own purposes.
• AA1000 Standard from AccountAbility
In recent years Sustainability Reporting has increased as a result of the growing
concern of stakeholders from different sectors with the social, economic and
environmental performance of organizations that guarantee to possess high
quality and credible reports. For this reason, AccountAbility has developed the
AA1000 Assurance Standard as a guide of the key elements for organizations
desiring to assure their report process, based on results of their main systems,
processes and competencies. This report is based on the 2003 version of the
AA1000 Assurance Standard, taking into account the Principles of inclusivity: as
a commitment to identify impacts among the three sustainability dimensions;
materiality: as a principle to state whether the Reporting Organization has
included the information required by its Stakeholders; completeness: as a
principle to evaluate the extent to which the Reporting Organization can identify
and understand material aspects of its Sustainability Performance; and
responsiveness: as a principle to evaluate whether the Reporting Organization
has responded to Stakeholder concerns, as well as to an adequate communication.
For further information regarding AA1000 series, visit
http://www.accountability21.net/.
The Global Reporting Initiative, a network comprised of specialists from 20 countries,
has elaborated a guide for the sustainability reporting process, whose current G3
version, contains the Principles that define the report content and assure the quality
of the reported information, including the standard disclosure of Sustainability
Indicators, among other disclosure articles. Its main Principles are: materiality,
stakeholder inclusiveness, sustainability context, and completeness (which determine
the report content), and followed by the Principles of balance, comparability, accuracy,
timeliness, reliability, and clarity (which determine the quality of the information).
Consequently, their application was sought during the reporting process and it is
reflected throughout the pages of this document. The GRI Application Level for this
Report is A+ and it has been confirmed by the Global Reporting Initiative.
For further information regarding the GRI initiative visit
http://www.globalreporting.org/
• UNITED NATIONS Global CompacT
The Global Compact Initiative is intended to strengthen corporate social responsibility.
It is integrated by the Global Compact Office together with five UN agencies: the
Office of the United Nations High Commissioner for Refugees, the International Labor
Organization (ILO), the United Nations Environment Programme (UNEP), the United
Nations Industrial Development Organization (UNIDO) and the United Nations
Development Programme. PEMEX adopted the Global Compact Principles and sends
out, since 2006, a report entitled “Communication on Progress”, which informs about
its level of compliance with such Principles.
For further information regarding the Global Compact visit:
http://www.unglobalcompact.org/Languages/spanish.html and
http://www.pactomundial.pemex.com
• Extractive Industries Transparency Initiative (EITI)
Money derived from the oil, gas, and mining industries in many countries is
often associated with poverty, conflicts of interest and corruption, due to the lack
of transparency and accountability regarding the amounts companies pay to
governments, and the revenues the government receives from the same. The
Extractive Industries Transparency Initiative (EITI) aims to strengthen governance
by improving transparency and accountability in the extractive sector and
ensuring that the economic benefits obtained from the extractive industry are
shared by society. The EITI is a voluntary initiative backed by coalition of
governments, companies, civil society groups, investors and international
organizations. The EITI has an ongoing process, along with other tasks, to
improve budgetary practices in the public sector through which citizens can
demand accountability from their governments on the use of the resources from
the extractives activities. PEMEX signed up for this initiative in September 2006
in order to improve transparency, accountability and work against corruption in
all its operations.
For further information regarding EITI visit: http://eitransparency.org/
On the other hand, maturity is understood as the level of attention companies
within the sector pay to a certain issue. Both the “Materiality Study” and the
consultation process carried out with the Citizen Participation Group (described
in the Appendix on the Citizen Participation Group) and the Stakeholders through
two workshops and online surveys for feedback regarding PEMEX’s last report,
Sustainable Development Report 2007, have contributed to the compliance with
the criteria above-mentioned, and to the response (third Principle of the AA
1000 AS) to primary concerns expressed by PEMEX’s stakeholders.
It is worth stressing that the consultation processes carried out with representatives
of PEMEX’s internal and external stakeholders, met the objective of obtaining
feedback about their perception of the Sustainable Development Report 2007,
regarding positive as well as negative aspects, to identify areas of opportunity
for the 2008 Report, in content and in quality and credibility of the information,
among others.
The issues identified through the materiality study and the stakeholders’
feedback as those with a higher risk level for PEMEX are Climate Change, Social
Impacts in Communities and Operations/Exploration and Production. Therefore,
these issues require special attention for their management. In general,
stakeholders share the idea of a Report intended for the general public and not
only a sector-specific Report, with a perception of credibility, to be seen as the
document’s responsiveness towards its issues for the benefit of all the
organization’s stakeholders.
Report Assurance Process
KPMG Cárdenas Dosal, S.C. verified the information contained in this report,
according to the scope and conditions established in the assurance letter
included in this document.
This activity was completed with an international group of KPMG examiners from
the offices in Mexico and Spain. The assurance process included visits to 11
Work Centers, where the examiners reviewed the information generation
process that feeds PEMEX systems, interviewed employees in the corporate
units and Subsidiaries, and examined the accounting methods of the security
and environmental protection data. The conclusions of the findings obtained
throughout the course of the review are included in the assurance letter in this
document. Recommendations for improvements are included in a report that
KPMG submitted for analysis by PEMEX’s Corporate Operations Office.
The non-financial information included in this Social Responsibility Report
corresponds to the Head Office and its four Subsidiaries, except for
environmental related information that is limited to information derived from the
industrial operations performed by the Subsidiaries, and other specific cases
described in this report. This report does not contain non-financial information
on the “Subsidiary Companies” as defined in the Annual Report.
The Company implemented the SISPA system in 2001. This system is used to
prepare a monthly on-line report on Industrial Safety and Environmental
Protection for each Work Center. The information is uploaded in each Center and
is processed and compiled for all the entities. Said information provided the
statistical basis for the gas emission data herein reported, such as greenhouse
gases, and the production and consumption of raw water. In the same manner,
the PEMEX-SSPA management system facilitated the consolidation and compilation
of the information in matters of safety, health, and environmental protection.
The financial data was obtained mainly from PEMEX’s public information, such
as PEMEX Financial Results Report from December 31, 2008. For further
information, visit www.pemex.com. PEMEX shows its commitment to society by
means of improvement in the quality of the information and transparency in the
disclosing process, and continues its effort to contribute to a sustainable
development model in our country.
Limitations on the information
The measurement of data was accomplished by applying the techniques defined
in the GRI G3 in order to respond to the Indicators and PEMEX’s corporate
guidelines, from which we may highlight the following:
• Air emissions: The air emissions are estimates based on the year 2000
Supplement F to the EPA AP-42 emission factors, and the schiometric
calculations derived from the composition of thermal oxidation flows in each
sulfur recovery plant and in the vent and burn processes
• Spills: This Report only provides information regarding hydrocarbon spills that
occurred in the pipelines and facilities registered by the Work Centers in
SISPA. Spilled volumes are estimates and do not include intermittent leaks in
pipelines or equipment
• Frequency and Severity indexes: The frequency and severity indexes do not
include accidents that occurred on the way to and from work and those work
related accidents that were caused by third parties and/or unsafe conditions
that are outside PEMEX’s control. The reported indexes do not include the
overtime worked by non-union employees
• Data related to the Case Studies: The data contained in the Case Studies are
estimates made by the responsible parties in the Subsidiaries, to the best of
their technical knowledge. PEMEX does not have any other support documentation
for Case Studies than the documentation contained in its critical review
• Data concerning previous years: The continuous inventory improvement
process may that corrections have been made to information published in
reports in prior years. These corrections are due mainly to improved estimate
calculation factors or to the inclusion of data from other sources (facilities)
that were not accounted for at that time
9
The Company completed a “Materiality Study” to identify the concerns that
affect the Company’s stakeholders or have the potential to put its reputation at
risk, and learn about those aspects of Sustainability that are relevant to the
sector and PEMEX, in particular. The issues identified during the analysis were
assessed in terms of risk and maturity. Risk is understood as the attention
provided by the groups consulted (institutional investors, companies,
associations in the sector, media, NGOs, social entities, and international public
agencies) to each one of these matters. It could be understood that such
attention carries a reputational risk for the organization.
Scope of the 2008 Social Responsibility Report
Materiality Study and Stakeholders Feedback
GRI 4.17
Citizen Participation
Background
This is the fourth year that Citizen Participation has supported PEMEX in defining and evaluating the
most relevant issues tackled in this 2008 Social Responsibility Report.
At the present time, this collaboration is given through the Citizen Participation Group (GPC, Spanish
acronym) which is integrated by 14 civil society representatives involved in the company’s regular
activities as well as environmental and sustainable development specialists.
Members of the Citizen Participation
Group
Gustavo Alanís Ortega
Director of the Mexican Center of Evironmental
Law, CEMDA
GPC Operation
From early January to late May, the GPC met several times with PEMEX’s personnel and management,
with the purpose of considering the issues to be reported and defining the questions to be asked to
PEMEX. The GPC scored PEMEX’s answers and suggested proposals and made recommendations
regarding the pertaining matter.
Recommendations and proposals of the Citizen Participation Group regarding the 2008
Social Responsibility Report of Petróleos Mexicanos
• To provide quantitative data on the corresponding number of projects regarding the reduction of
greenhouse gas emissions (GHG) and their respective budgets, on the development of studies and
projects for the incorporation of alternative energies, or, on studies that allow considering
technical-economic advantages and disadvantages of adding biofuels to traditional fuels in the face
of the national and international financial crisis
• To indicate the instruments used by PEMEX to internalize the sustainability criteria in the
management, operation and labor culture practices, besides the development of capacities in its
technical and operational areas
• To indicate the existing starting points for the environmental considerations within the Company’s practices
• To provide numerical data regarding the energy intensity of processes, as well as the follow-up of
the efficiency of projects, which because of their specific importance or scale, are critical for
PEMEX’s environmental performance
• To indicate if they have base lines and goals as well as measures to be adopted in case of non
fulfillment of efficiency goals
• To mention the new guidelines regarding the management of grants and donations
• To point out how the “Green Purchases” work and ensure that all legal regulations are properly implemented
• To broaden the training of contractors on the subject of sustainability and include the result of the
audits carried out together with the feedback of said audits in training courses regarding employees’ safety
Main Proposals by GPC
• To carry out analysis and reflection workshops for the Citizen Participation Group and those
responsible for every subject identified as relevant in order to increase the inter-relation with core
actors, exchanging opinions on how to optimize some processes and, in the case of GPC,
transmitting the vision that society has about the company’s development. These meetings could be
held in the months following publication of the 2008 Social Responsibility Report
• To determine the questions to be asked for the 2009 SRR between October and November of the
current year, in order to have enough time and so systemize the previous experiences and
differentiate between conceptual issues and those that require special indicators for their follow-up
• To ask sustainable development related questions that go beyond the environmental aspect, and
include others related to claims, judiciary-environmental issues and rendering of accounts
• To hold a GPC-PEMEX meeting as soon as the questions to be asked to Petróleos Mexicanos have
already been formulated, in order to exchange points of view on how the company will respond to
these questions to straighten out this process
• To underline the need of disseminating internally and externally the SRR, so that a change factor can
develop within the company to support improvement in the reputation of the institution
Evaluation of Petróleos Mexicanos’ Answers Regarding the GPC’s Questions about the
2008 Social Responsibility Report
The Citizen Participation group drew up 19 questions to be asked about the 2008 Social Responsibility
Report with regard to Energy Reform, Sustainability, Climate Change, Environmental Regulations,
Biodiversity, Sustainable Regional Development, Claiming Industry, Safety, Public Consultation,
Transparency and Fight Corruption, among others.
The questions asked by the GPC to PEMEX and their pertaining mark are as follows:
Antonio Azuela de la Cueva
PhD, Senior Researcher “A” of the Institute
for Social Research, UNAM
Juan Carlos Belausteguigoitia
PhD, Lead Environmental Economist, LCSES,
World Bank
Pedro Buonomo
Infrastructure specialist to the Inter-American
Development Bank, IDB
Verania Chao Rebolledo
Environmental and Energy Programs
Officer of the United Nations Development
Programme UNDP
Exequiel Ezcurra Real de Azúa
PhD, Director of the University of California
Institute for Mexico and the United States,
UC MEXUS
José Antonio González Azuara
Director of the Pico de Orizaba, Cañón del Río
Blanco and Cofre del Perote National Parks, National
Commission of Protected Natural Areas, CONANP
(Spanish acronym)
Boris Graizbord Ed
Coordinator of the Advanced Sustainable
Development and Environment Studies Program,
Mexico LEAD of the Mexico College
Paulina Grobet Vallarta
MSc, Adviser of the United Nations Development
Fund for Women, UNIFEM
Alejandro Guevara Sanginés
PhD, Director of Social Studies, Universidad
Iberoamericana
Ellis J. Juan
Representative in México of the Interamerican
Development Bank, IDB
PEMEX 2008
10
Alejandro Lorea Hernández
Executive Director of the Commission of Studies
in Private Enterprise Sector for Sustainable
Development, CESPEDES
Pablo Mulás del Pozo
PhD, Director Executive of Mexican Association
for the Energy and Sustainable Development,
AMEDES (Spanish acronym)
Graciela Teruel Belismelis
PhD, Academic Councilor of the National Council
for the Evaluation of Social Development Politics,
CONEVAL
MEMBERS OF THE CITIZEN
Questions about the 2008 Social Responsibility Report of PEMEX
Proposed mark
Questions by GPC
Very bad
0-20%
1
What is the strategy and specific actions that, arising from the Energy Reform, will affect –from the governance view point
and the recognition that transparency and the rendering of accounts will allow the strengthening of the citizens’ credibility
towards the institution- the development and the decision-making of the government organizations; the internal relationships
of the public sector; the relationships with customers, suppliers and contractors; the relationships with the labor union and with
society, including impacts on the environment and the measures to control them?
2
What are the strategies and specific actions that PEMEX will implement as of this year so as not to affect or have an impact on
the goals established by the Federal Government related to the reduction of the greenhouse gas emissions (GHG), or in order to
continue with the studies and projects developed for the incorporation of alternate energies or, those studies that allow weighing up
technical-economic advantages and disadvantages of adding biofuels to traditional fuels and, in general, so that the national and
international financial crisis does not affect the environmental protection and improvements?
3
With the purpose of internalizing the sustainability criteria in management, operation and labor culture, what are the specific
actions to be taken by PEMEX to develop the capacities of its technical and operational areas?
4
How does PEMEX measure the efficiency and effectiveness of the Report on Sustainable Development as an instrument for
the rendering of accounts?
5
What indicators system is used or is to be used by PEMEX to measure and prove to the authorities the level of compliance with the
regulations as regards environmental, safety and health matters?
6
What is the investment recorded by PEMEX to comply with the commitments acquired in the Environmental Impact Statements
that the company presents to the federal environmental authority, what are the internal control systems used to follow up each
Environmental Impact Statement and the internal procedures used to achieve a good communication between: a) the specialists
who draw up the Impact Manifests, b) the work executors, and c) PEMEX’s personnel?
7
What is the role of PEMEX in the generation of knowledge on the effects on biodiversity and the functioning of ecosystems in
the areas where its work and activities are carried out, what studies and research has it carried out, how does it spread the
information, and in what way does it include in its production cost analysis, recovery costs for ecosystems and the cost of
use and maintenance of water supplies?
8
What is the company doing in oil regions to boost a sustainable regional development strategy that contributes promoting
attention to social problems arising from oil activity and what evidence is there of administrative and audit participation in
the generation of processes that facilitate said task?
9
What program is being developed and what is the time scale to have the system operating in order to end the emission into
the atmosphere of the following gas mixture: natural gas and nitrogen?
10
What program does PEMEX have to promote the rational use of the oil products that it produces and sells to consumers and,
if it has one, what is the follow-up to measure its impact and effectiveness?
11
Is there a quantitative and systematized follow-up of the results arising from these projects and what has been the impact
on the energy intensity of these processes?
12
What is the follow-up and assessment mechanism or system used by PEMEX to ensure the transparency in the distribution
of its resources allocated through grants and donations?
13
What has PEMEX done institutionally to avoid legal claims and thus avoid falling in social blackmail which most of the time
is unfounded?
14
What criteria or guidelines does Petróleos Mexicanos employ to make “Green Purchases” and thus assure that its suppliers
sell products that are friendly environmentally?
15
What are the consulting processes with specific parties and communities carried out by PEMEX in its activities?
16
How do you assess the efficiency of the agreements reached?
17
What are the policies PEMEX follows to avoid and combat corruption and what are the follow-up measures to guarantee the
efficiency of the preventive and corrective actions?
18
What training programs does PEMEX have regarding workers’ safety?
19
How does it ensure that its contractors carry out these programs?
Bad
21-40%
Fair
41-60%
•
Good Very Good
61-80% 81-100%
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
11
Note: The answers to this questionnaire may be found at www.pemex.com in the section on Sustainable Development.
PEMEX 2008
12
01
Commitment to the Nation in Strategy
PEMEX and Sustainable Development
Channels of Communication with Society
Reinforcement of Mexico’s Oil Company
Pledged International Commitments
Distributing the Value Generated to the Nation
Technological Innovation
2008 Action Plans
Strategic Guidelines:
I. Productivity, efficiency and project management
II. Physical and industrial safety and environmental protection
III. Management and accountability
IV. Modernization, internationalization and customer service
Historical Commitment to Sustainable Development
Core Actions of Sustainable Development
I. The capture of operational opportunities
II. Environmental community responsibility
III. Investment sustainability
Communication Mechanisms with Society
Communication Measures with Stakeholders
I. Energy Reform based on an agreement of all major political parties
and with the stakeholders
II. Web site with access to the company’s information
III. Citizen Service System for complaints, claims, etc.
Legal Framework
The New Energy Industry Legal Framework
I. Regulatory Act of the Constitutional Article 27 as regards the oil
industry
II. Organic Act of the Federal Public Administration
III. Hydrocarbons National Commission Act
IV. Energy Regulatory Commission Act
Assuring the Future through Technological Innovation
Technological Innovation Strategic Lines
I. An increase in the capacity to acquire and incorporate technologies
II. The capture of additional resources for non-reserved activities
III. Cooperation Agreements on technological exchange
Petróleos Mexicanos has been the Mexican oil company for 70 years, conscious of the great challenge when
it comes to guarantying the sufficient supply of quality fuels, oil and basic petrochemicals at competitive
prices and in accordance with strict environmental protection regulations, thus complying with the needs
of the Mexican people.
PEMEX is committed to contribute to the communities’ sustainable development and to protect the
environment; to be focused on satisfying the needs of its customers and final consumers; to be more
transparent; to have suppliers committed to the company; and to establish more efficient processes that
allow a lighter Organizational Structure to bridge gaps in matters of productivity.
GRI 4.8, management approach
Mission
“Maximize the value of hydrocarbons and their components
to contribute to the nation’s sustainable development”
Corporate Values
1. Integrity
2. Innovation
3. Competitiveness
4. Sustainability
5. Social commitment
Strategic Guidelines
I. Productivity, efficiency and project management
Establish a homogeneous system for the comprehensive
management of investment projects
•PEMEX seeks to strengthen its system in charge of the
efficient management of investment projects
Savings and efficiency margin is essential in a company
where 65% of its total budget is assigned to investment
PEMEX 2008
14
01
Improve operations to increase productivity and efficiency
•PEMEX must operate with optimal efficiency to maximize
the value of national resources
PEMEX’s Non-scheduled Shutdowns Index is higher than
the international standard, which is reflected in a lack of
confidence and availability of equipment, non-compliance
with operational programs and production losses. It is an
important challenge for the company to reduce this index
Optimize human resources
•PEMEX needs to improve labor conditions and raise its
productivity levels, both essential factors to transform
PEMEX into a more solid company
Among the issues to address: redefinition of the Corporate
Structure, professionalization of frameworks, revision
of the Recruitment and Hiring Schemes and employee
training are of particular relevance
II. Physical and industrial safety and environmental
protection
Consolidate progress in industrial safety
•PEMEX needs better practices for more efficient and
safer daily activities in the oil industry, thus promoting
the protection of the environment and the accidents
reduction goal
- Efforts have been made in matters of industrial safety,
however there are still important areas of opportunity
- The emphasis on environmental protection and
employees’ health is a priority for PEMEX
- As regards maintenance, it should be preventive rather
than corrective and should arise form from diagnosis of
the facilities
Strengthen physical safety in the facilities
•A strategic plan is being processed to prevent and mitigate
sabotage actions against facilities of Petróleos Mexicanos.
This plan arises from a basic principle: the capacity of
response to re-establish the operation at the concerning
facility
The strategy considers:
- Reinforcing security in critical protected facilities
- Substantially improving of the capacity to respond to
re-establish services in critical non-protected facilities
- Reinforcing the physical security of the non-protected
facilities with electric supply
- Reinforcing the physical security of the non-protected
facilities with no electric supply
- Reinforcing the physical security of marine facilities
Modernize the pipeline transportation system
•Clandestine Taps
- Petróleos Mexicanos suffers from clandestine taps
that threaten the population and the environment.
Fuel theft constitutes a felony that affects both the
company’s assets and the country
•Maintenance
- As a result of a historic lag of resources, the reliability
of product transportation is weak
- Thus, an integral management system for the
pipeline network is being developed and will be
applied to SCADA in all PEMEX
- The SCADA system will allow real time monitoring of
the entire PEMEX pipeline network operation
Strengthen environmental protection actions
•Petróleos Mexicanos works according to the sustainable
environment guidelines expressed in the National
Development Plan (PND, Spanish acronym), and ratifies its
commitment to the best environmental practices
•As a fundamental concept of Sustainable Development,
PEMEX has incorporated in all its projects a preventive
principle as regards environmental protection
•Beyond compensations and remediations inherent to the
operation, environmental protection is today a business
key factor for success and its cost is internalized when
designing the company’s projects
•PEMEX has an Environmental Protection Strategy based on
three core actions:
- Seize operational opportunities to comply with the
regulation and elimination of environmental hazards
- Incorporate environmental criteria within the
investments and business decision-making
- Promote even further responsibility to the
community
III. Management and Accountability
Reorganize to improve corporate governance
•PEMEX requires transparency when making decisions and
the adoption of quick and efficient response practices to
seize opportunities
- The adoption of better Corporate Governance
practices is promoted
- In order to provide a stronger level of transparency,
PEMEX is adopting the best information and control
systems practices
- Strict compliance with Sarbanes Oxley requirements;
there is a wide program to establish every procedure
comprised in this Act. Nine out of 15 measures are
designed to fight corruption
Continuous transparency and accountability processes
•PEMEX faces a lack of both internal and external trust
and reputation. It is imperative for Petróleos Mexicanos to
revert this situation
- Tenders and acquisitions of supplies and public work
programs have been substantially improved with
regard to the quantity and quality of the information
available to citizens and companies
- Increase in the participation of social witnesses in
different tenders, in accordance with new guidelines
on this matter
- Chairman re-assignment in every Subsidiary Internal
Control Body (ICB), coordinated by the Corporate ICB
- New guidelines have been approved in terms of
Grants and Donations, among which, accountability
on resources granted is highlighted
IV. Modernization, internationalization and customer
service
Increase the capacity for acquiring and incorporating
technologies
•PEMEX is interested in subscribing to and expanding
non-commercial cooperation agreements with other
oil-industries, in line with a strategy of entrepreneurial
strengthening at an international level
Raising of private resources through investment in nonreserved activities
•PEMEX faces significant maintenance and investment
gaps, which reduces its operational capacity and safety
margins. This situation demands immediate attention
- In matters of gas, the institutional and competence
scheme is being revised in collaboration with the
regulating authorities in order to boost the private
investment within the oil industry, including the
construction of back-up facilities (“redundancies”)
for supply guaranteeing
- PEMEX-Petrochemicals is working on the design and
promotion of practical schemes of association with
the private sector in order to develop low investment
projects, such as PPQ-UNIGEL (Acrylonitrile)
Develop a subprogram to improve the quality of
customer and consumer service
•PEMEX aims to know its customers’ and consumers’
needs and preferences in depth, in order to optimize the
relationship between the company and the rest of the
company’s service chain
- Improve product quality and attend customers’ and
consumers’ needs
- Improve supervision of franchisers and
concessionaires
- Implement programs and actions for more direct
attention to companies
- Establish mechanisms to process requests and
proposals in matters of supply and contracts for
works and services which are undertaken by
business organizations
Define a strategy for PEMEX’s internationalization
process
•PEMEX’s goal is to adopt the best practices and
experiences of companies with international prestige
in order to develop skills that are fundamental to the
exploration and exploitation of hydrocarbons
•Among the actions related to this initiative are:
- Invitations for PEMEX to participate in upstream
projects (crude and gas) outside the country
-Updating of Strategies to participate in international
forums
For further information:
http://www.pemex.com/index.
cfm?action=content&sectionID=1& atID=11680
15
Actions for improving management
•Petróleos Mexicanos looks for the best way to inform
citizens about contracted public works and services, as
well as to publish contracting conditions
•In order to follow this initiative, the following actions have
been implemented:
- Standardization of the structures and processes of
Information Technologies
- Consolidation of the supplies acquisition processes,
by means of public bids
- Improvement in the accountability of public works,
by means of the Electronic Logbook
- The relationship between PEMEX and IMP is
being redefined to encourage the development,
incorporation and implementation of the technical
and scientific knowledge that answers to PEMEX’s
needs and compatible with IMP’s comparative
advantages
- More technological alliances with different oilindustry companies are being sought. So far, the
agreements with BP, Petrobrás, Statoil and Maersk
have been renewed
Implement measures to fight corruption
•A democratic country and a significant reduction in
corruption and impunity, are among the greatest
challenges that Mexico faces in the XXI century
- PEMEX created the Oil-Industry Works Electronic
Logbook in which every relevant matter related to
works and service contracts is registered by the
technical representatives of a Subsidiary and its
contractor
- PEMEX-Refining became the first public company to
issue electronic invoices for its services and sale of
products. This represents an important measure to
reduce costs, to make commercial transactions more
transparent, improve accountability, and strengthen
internal and external reliability and trust
GRI 4.12, management approach, 1.2, 4.14, 4.15, 4.16, 4.10, 4.17
PEMEX has a clear purpose: carry out the strategic
activities of the national oil-industry, maximizing the
economic value of hydrocarbons on a long-term basis
and satisfying the needs of its customers for quality,
all of these congruent with the community and the
environment.
For this purpose, PEMEX’s work has been focused
on the following: operational efficiency, sustainable
growth, modernization of management and social
responsibility, vital issues within the current context for
the achievement of the country’s integral development;
the mission, the values and the action plans of Petróleos
Mexicanos are a reflexion of the will and commitment of
its employees.
Additionally, contractor companies will be committed,
by means of a new clause that will be included in every
contract, to invest a percentage of the project’s amount
in social and environmental improvements within the oilproducing communities and regions. These resources will
be applied in accordance with the operation regulations
which have been designed to enhance the environmental,
social and economic regional aspects arising from the
diagnosis of the project.
PEMEX contributes to the Land Management of its
oil-producing municipalities and regions, in an effort
to assure stakeholders of the economic development
related to the oil-industry value chain.
Material Issues
01
Along the whole productive chain of the company and
in accordance with its values, Petróleos Mexicanos
contributes to the nation’s development through different
channels, such as tax contribution, collaboration with
suppliers, contractors and service providers, grants
for initiatives regarding environmental protection,
biodiversity preservation, climate change projects,
community development and social projects.
In line with the PND 2007-2012, the Energy Sector
Program (Prosener, Spanish acronym), the Sectorial
Program for the Environment and Natural Resources and
the 2006-2015 PEMEX Institutional Strategy, PEMEX sets
out sustainable development actions supported on three
main fronts:
1. The capture of operational opportunities
2. Environmental community responsibility
3. Investment sustainability
Sustainability criteria are being incorporated into the
company’s investment projects in order to preserve the
social, environmental and economic conditions of the
communities where these projects are being executed.
On the other hand, projects are expected to contribute to
the improvement of the communities’ current situation
by means of properly diagnosed and planned actions
within the context of the project’s strategy, such as
PATG, where several national and international institutes
elaborated the Sustainable Development model together
with PEMEX.
The activities of PEMEX and the Ministry of Energy, along
with PEMEX’s diagnosis dated March 30, the Energy
Reform presented by the President and the debate
forums that took place in the Senate of the Republic, all
together defined during 2008 the path to be followed by
the company and the country’s energy industry.
Among the conclusions of the analysis, the issues for the
oil-producing industry and PEMEX are as follows:
•Issues with higher levels of risk are Climate Change,
Social Impacts on Communities and Operations/
Exploration and Production, thus requiring more
attention when managing them in order to turn possible
threats into opportunities for the company as regards
its competitors
•Corporate Governance and Risk Management
are among the issues with higher risk and less
development. These require immediate action and
constant follow-up. All of the actions addressed to
improve their practices will allow the company to obtain
competitive advantages with respect to the rest of the
industry
•This year, the analysis also included Relations with
Indigenous Communities. It is a relatively undeveloped
issue within the oil-industry, but with a high risk
level. As in the case of Corporate Governance and Risk
Management, an adequate management will allow an
advantageous position within the industry
The more relevant issues were given priority as a result of
the “Materiality Study,” which is based on available public
information and a benchmark study of 10 international
companies.
More Relevant Issues:
PEMEX 2008
16
Public Sector Relations
Corporate Social Responsibility Management
Human Rights
Biodiversity
Emissions Different from GHG
Channels of Communication
with Society
PEMEX establishes communication with its different
stakeholders through a reciprocal interaction and
appropriate channels of communication with each of
them. This 2008 Social Responsibility Report is one of
such channels of communication.
Complaints and Non-Compliances Channels of
Communication
The Citizen Service System for gathering complaints,
claims and recognitions, is a communication tool
generated by the ICB of PEMEX, whose purpose is
to provide transparency to its public function. This
System helps to carry out the investigation of irregular
conduct incurred by public servants, along with the
implementation of preventive and corrective actions.
The complaint registry is found at http://www.pemex.
com/index.cfm?action=content&sectionID=116&cat
ID=11120
or may be sent by email to the following address:
[email protected].
Socialization of Sustainability Actions
PEMEX has reported its Sustainable Development
performance since 1999. New initiatives and strategies
focused on informing the sustainability criteria took
place during 2008:
1. Preparation of the 2007 Sustainable Development
Report, which follows the Global Reporting Initiative (GRI)
principles, and complies with the United Nations Global
Compact Principles.
•Highest score validated by the Global Reporting
Initiative (A+ GRI Checked)
•The Citizen Participation Group comprised by opinion
leaders from different sectors of the society has been
consolidated
•The Global Compact recognized as notable the
Communication on Progress Report
•CESPEDES rated the mentioned Report as “benchmark”
in Mexico for this type of publications
2. Internal diffusion of the Sustainable Development
Report by means of a 3-month campaign. Such campaign
included the integration of written and electronic means,
besides the presentation at different Subsidiaries’ Work
Centers: Salina Cruz, Monterrey, Salamanca, Tampico,
Tula, Veracruz, Poza Rica, Coatzacoalcos, Villahermosa
and Ciudad del Carmen.
3. New functions on the PEMEX Sustainable Development
Website (http://desarrollosustentable.pemex.com/portal/
index.cfm), such as: the ecological footprint calculator,
interactive charts with environmental statistics, and raise
awareness sections on Climate Change, which includes
a Kids Portal. During 2008, the Sustainable Development
anchor site had 68,702 visits, 142.9% more than in 2007.
www.pemex.com is the main public means of communication that contains historic, financial and operational information regarding the environmental and
Sustainable Development performance of the company. The format RSS (Really Simple Syndication) allows the public in general to subscribe for free and
receive updates of Press releases.
Stakeholders
Interaction and communication mechanisms in the oil industry value chain
Suppliers
Service and goods
contracts, industrial
chambers,
work meetings,
publications, surveys
Oil
Community
Requests for support,
work meetings, letters
to the Director General
Civil Society
Government
Surveys and perception
and transparency polls,
campaigns, corporate
Website, letters to the
Director General
Periodic meetings,
requests for support,
accountability reports
Media
Press reports,
interviews,
conferences, press
releases
Customers
Customer satisfaction
surveys, remote
customer service
(Web, phone, etc.)
External Stakeholders
PEMEX
Videoconferences,
periodic reports, press
releases
Formal Power – High Dependence
Retired
Workers
Intranet, labor
relations, customer
service centers,
healthcare services,
retirement centers,
community centers
Formal Power – Low Dependence
Active
Workers
Union
Intranet, “Nuestra
Empresa [Our
Company]”
bulletin, internal
communications,
opinion polls, TV
shows streamed over
the Intranet
Internal Control Entity,
Mixed Commissions,
Deputy Head Office of
Human Resources
Medium Influence – High Dependence
Low Influence – Low Dependence
Analysts
17
Internal Stakeholders
GRI 4.8, 2.9, 4.13
Reinforcement of Mexico’s Oil
Company
The Energy Reform approval empowers PEMEX to initiate
a new development stage that will allow it to face the
multiple and big energetic challenges concerning both
the country and the company.
With the Reform approval, the company obtains:
•Operational flexibility
•Execution capacity with a specific works and
acquisitions regime
•New budgetary margins, that allow gradually expanding
its investments
•New and better Corporate Governance
•Budgetary and debt autonomy
•Transparency and accountability
•New tax regime in accordance with today’s challenges
Energy Reform
• Regulatory Law of Constitutional Article 27 regarding
the oil industry
• Organic Law of the Public Federal Administration
• Law of the National Commission of Hydrocarbons
• Law of the Energy Regulatory Commission
• Act for the use of Renewable Energies and Financing of
the Energetic Transition
• Law for the Sustainable Use of Energy
• Petróleos Mexicanos Act
The Energy Reform sets once again the actions within
the national energy and the oil producing fields with an
integral and transversal vision of modifications, with
those for Sustainable Development being the most
representative.
The new energy-industry legal framework is now
integrated by modifications, additions and derogations of
seven Mexican acts:
PEMEX 2008
18
01
Act Modified / Enacted
Relevant Aspects from the Energy Reform that Impact Sustainable
Development
Regulatory Act of the Constitutional Article
27 with regard to the oil industry in Article 9
Criteria boosting protection, restoration and conservation of the ecosystems will be
followed at all times, as well as legal and regulatory compliance in environment, natural
resources, water, forests, wild aquatic and land flora and fauna matters, including
fishery.
Article 22 of the Petróleos Mexicanos Act
Creates the Environmental and Sustainable Development Committee, which will be in
charge of developing and monitoring the company’s implementation of programs, in
addition to the preparation of reports for the Board of Directors.
Act for the Renewable Energies Use and
Financing of the Energetic Transition
specified in article 21, section II
The projects of electricity generation (at least 2.5 MW) from renewable energies will
try to promote sustainable rural development in the communities where these will be
executed. Within this Act, the Transition and Sustainable Use of Energy Trust is also
created, which will allow obtaining financing for the projects.
The Sustainable Use of Energy Act creates
the National Commission for the Energy
Efficient Use
The Commission’s main functions are to formulate and issue methodologies to quantify
GHG emissions, energy usage and its economic value, and, in general, to regulate the
instruments and players participating in the energy efficiency projects.
Hydrocarbons National Commission Act
The Hydrocarbons National Commission will be the guarantor of the environmental
protection and the sustainability of the natural resources, as to exploring and exploiting
oil fields.
Subscribed International
Commitments
Main Agreements with Oil-Industry Companies
During 2008, PEMEX subscribed 11 non-commercial
Cooperation Agreements with international oil-industry
companies to strengthen the technological, scientific
and personnel training exchange. The Cooperation
Agreements comply with the Mexican legal structure and
their fundamental purpose is to exchange technological
know-how on key topics to develop projects such as
deep water exploration and operation, heavy crude oil
production and increase of the recovery factor in inland
and offshore fields through the application of recovery
technologies.
Global Compact
PEMEX voluntarily assumed this United Nations initiative
in January 2006, which was presented for the first
time during the 1999 Economic World Forum in Davos,
Switzerland. One of its commitments is to inform the
progress on the implementation of its ten Principles
through a report called Communication on Progress (CoP).
Said CoP was integrated for the second consecutive year
into the Sustainable Development Report.
PEMEX played an important role in the Mexico Statement
during 2008, which was presented by a group of
entrepreneurs to the United Nations Secretary General.
The Global Compact Network in Mexico reiterated its
commitment to coordinating efforts to consolidate the
Global Compact as a social responsibility platform.
Relation
Asociación Regional de Empresas de Petróleo y Gas Natural en Latinoamérica y el
Caribe (ARPEL)
Member
Chemical Distribution Institute (CDI)
Member
Emerging Markets Network (EmNet) – OECD
Associate
European Barge Inspection Scheme (EBIS)
Member
Extractive Industries Transparency Initiative (EITI)
Member of the Council
INTERTANKO (International Tanker Owners’ Association)
Member Associate
Methane to Markets Initiative (M2M)
Co-president - Subcommittee Oil and Gas
National Oil Company Forum (NOC Forum)
Member
UN Global Compact
Member
Ship Inspection Report Programme – OCIMF
Member
World Energy Council (WEC)
Sponsor – Chapter Mexico
World Economic Forum – Energy Industry Partnership (EIP)
Partner (EIP)
World Petroleum Council (WPC)
Sponsor – Chapter Mexico
Association / Organism
19
International Associations in which PEMEX Officially Participates
GRI EC1, 2.8, EC4, 2.7
Economic Value Generated and Distributed in Million Pesos ($)
Total sales
2008
Variation% *2008 MMUS$
1,103,510
1,139,257
1,328,950
16.7%
98,162
567,290
592,048
679,754
14.8%
50,210
Exports
535,144
542,927
644,418
18.7%
47,600
1,076
4,282
4,778
11.6%
353
Cost of Sales
418,258
460,666
654,032
42.0%
48,310
Gross yield
685,252
678,591
674,918
-0.5%
49,852
80,975
84,939
103,806
22.2%
7,668
(1)
General Expenses
Operating yields
2007
National Sales
Service Revenues
01
2006
604,277
593,652
571,112
-3.8%
42,185
Other Revenues (expenses) (2)
61,214
79,798
197,991
148.1%
14,624
Yield before Taxes and Duties
651,718
658,948
659,625
0.1%
48,723
Taxes, rights and duties
604,765
677,256
771,702
13.9%
57,001
16.3%
71,621
Net yield (loss)
(46,953)
(18,308)
(112,076)
EBITDA (3)
815,729
833,691
969,621
17
14.4
15.1
EBITDA /financial cost (4)
(8,278)
* Preliminary consolidated financial statements are prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the Mexican Council of Development and Research on Financial Reporting
Standards. In compliance with NIF B-10 “Inflation Effects”, 2007 numbers are expressed in nominal terms with purchasing power at December 31, 2007 and 2008.
**Mexican pesos - U.S. dollar exchange rates are based on the prevailing rate at December 31, 2008. Ps 13.5383 = US$ 1.0. These conversions do not imply that the Mexican pesos have been or will be changed to U.S.
dollars based on said exchange rate.
(1)
Includes the cost of the reserve for labor obligations
(2)
Includes the Special Tax on Products and Services (IEPS, for its acronym in Spanish)
(3)
Income before interest, taxes, depreciation and amortization correspond to a non-established measure in the Financial Reporting Standards, therefore, the reconciliation is presented with its Net Income. This number
includes the cost of the labor reserve.
(4)
Excludes non-capitalized interests.
NOTE: Numbers may vary based on a round-up method. December 2008, Ps 13.5383 = US$1.0. These conversions do not imply that the Mexican pesos have been or will be changed to U.S. dollars with said exchange rate.
It is worth noting that, because of the company’s
features, PEMEX only receives resources from the
Federal Government for its annual investment and
operation budget.
During 2008, total sales, including service
income, represented 1,329 billions of pesos, that
is an increase by 16.7%, as compared to 2007,
mainly due to higher export crude prices.
The income before taxes increased by 0.1%,
which represents 659.6 billions of pesos.
Total Sales
Income before Taxes,
Rights and Duties
Billions of Mexican Pesos ($)
An increase of 13.9% with respect to 2007 due
to higher sales taxes, rights and duties were of
771.7 billions of pesos, amount equivalent to
58.1% of total sales during 2008.
Taxes, Rights and DUTIES
1,400
665
1000
20
1,000
660
800
PEMEX 2008
An increase of 13.9% with respect to 2007 due to higher sales
600
655
200
650
604.8
677.3
771.7
2007
2008
200
2006
659.6
658.9
651.7
400
2008
2007
0
2006
1,329
645
2008
2007 1,139.3
0
2006 1,103.5
600
International Trade
Exports
During 2008, crude exports decreased by 16.8% in
comparison with 2007, from 1,686 to 1,403 Mbd, mainly
as a result of lower oil production.
During 2008, dry gas exports decreased from 139 to
107 MMpcd, in comparison with the same earlier period,
because of higher self-consumption and lower dry gas
production.
During 2008, oil fuels exports increased from 176
to 184 Mbd with respect to 2007, primarily due to
higher fuel oil and turbosine sales. The main exported
products in volume were naptha, fuel oil and residual oil.
Petrochemical exports decreased from 746 to 540 Mt,
primarily as a result of lower sulfur and butane sales, but
partially offset by higher ammonia exports.
Imports
During 2008, dry gas imports increased from 386 to
450 MMpcd, in comparison with 2007, mainly because of
a higher self-consumption and lower dry gas production.
Oil fuels imports increased from 494 to 548 Mbd,
primarily because of a higher purchase of gasoline and
diesel. Petrochemical products imports increased from
425 to 440 Mbd, mainly as a result of a higher purchase
of isobutene and toluene.
2006-2008 Exports
2006-2008 Imports
Exported Barrels
Imported Barrels
Crude (Mbd)
Dry Natural Gas (MMpcd)
Oil Fuels (Mbd)
Petrochemicals(Mt)
External Markets Served
Dry Natural Gas (MMpcd)
Oil Fuels (Mbd)
Petrochemicals(Mt)
2000
88
10
2
600
1500
PEMEX Crude Oil Exports per
Region (%) in 2008
2008 PEMEX Oil Fuels and Gas
Domestic Sales (%)
America
Europe
Far East (includes other regions)
35
5
5
17
10 2
1
16
9
400
386
494
425
450
548
440
2007
2008
0
451
431
436
200
2006
2008
1,403
107
184
540
1,686
139
176
746
2007
0
2006
500
1,793
33
188
824
1000
a
b
PEMEX Magna
PEMEX Premium
Jet fuel
Diesela
Fuel oil
Asphalts
Other Oil Fuelsb
Natural Gas
Liquefied Gas
Includes PEMEX Diesel and desulfured diesel
Includes other types of gasoline and kerosene,
grease, paraffin, lubricants, coke, pentane mix, heavy
catalyticnaphtha and saturants.
GRI EC6
PEMEX, a Company that Generates Value for Society
During 2008, grants and donations for social development
totaled 1.9 billions of pesos. Main beneficiaries were the
oil-producing states, such as Campeche, Chiapas, Tabasco,
Tamaulipas and Veracruz, together with the states of
Coahuila, Guanajuato, Hidalgo, Oaxaca and Nuevo León,
which received 93.3% of total donations.
Modifications to the company’s procurement methods
are expected, as a result of the modifications of the
Petróleos Mexicanos Act, approved in 2008; PEMEX will
now require a minimum percentage of national goods
and services. For instance, the company will now prefer
proposals taking into account human resources, goods
and services from within the country, and will boost
small and medium enterprises under equal terms in
national biddings. Furthermore, PEMEX is expected to
create a specialized area to identify the opportunities
for development of national suppliers and contractors.
All these actions aimed at benefiting local communities
where the company operates are projected to begin
giving results in 2009.
01
Higher Capital Expenses to Achieve Operating Goals
Millions of Mexican Pesos ($)
Billions of Dollars
2000
2,193.1
2,415.8
2,669.3
2007
2008
0
2006
1500
Generated and Distributed Economic Value
(billions of pesos)
Concept
2007
2008
Labor Value
(wages, salaries, benefits)
31.8
34
2.4
2.7
27.5
9.4
677.3
771.7
Community Value (donations, grants, OBM
and the award of moveable assets)
Environmental Value (operation +
investment*)
2.0
3.1
4.2
5.1
5.5
7.5
6.9
7.8
10.1
10.9
10.8
13.8
14.5
18.0
19.4
19.9
2500
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010-12
3000
20
18
16
14
12
10
8
6
4
2
0
Average
2001-2006: 10.1
2006 and 2007 include donations and grants and
mutual benefir works; 2008 includes donations and
grants, mutual benefit works and goods and chattel
500
The actions that PEMEX has taken and will take
during 2009, in matters of infrastructure and projects
development, are framed in the National Agreement
to Boost Growth and Employment and the National
Agreement in favor of the National Economy and
Employment that the Mexican President announced in
2008. Likewise, they are contemplated within the PEMEX
Institutional Strategy.
Authorized investments in 2009 equal $19,444 million USD. Said amount
represents a 92% increase with respect to the investment resources used
between 2001 and 2006
2006-2008 Investment in Social
Development
1000
The challenge that Petróleos Mexicanos faces for
development of infrastructure projects is enormous and
diverse. The investment in projects will increase within
the next years, as a result of the reforms of PEMEX
and in accordance with the third pillar of the PEMEX
Institutional Strategy.
Tax Value (Taxes, rights and duties)
*Includes Pidiregas and Funds
The technological innovation initiatives undertaken as a
result of the Energy Reform are focused on the increase
of capacities to acquire and assimilate technologies
and on raising additional resources for non-reserved
activities, just as expressed in the strategic lines of
Petróleos Mexicanos.
70 Years of History, Working for the Nation
30´s
• Petróleos de México, A. C., is founded as the entity in charge of encouraging the national oilindustry investment
• The Mexican Oil Workers Union is created, its background dates back to 1915
• Strike against foreign oil-producing industries that paralyzes the country, the Workers’ Compensation Appeals Board favors the oil workers, but the
companies appeal for protection in the National Supreme Court of Justice
• The National Supreme Court of Justice denies the Injunctive Relief to the oil companies, and forces them to concede labor demands. These
companies refuse to comply with the Court order and as a consequence, on March 18, 1938, the President Lázaro Cárdenas del Río decrees
the expropriation in favor of the Nation, declaring the good will of the country to indemnify the oil-producing companies the amount of their
investments. Later, on June 7, 1938, Petróleos Mexicanos is created as the entity in charge of exploiting and managing the hydrocarbons for the
benefit of the Nation
40´s
• The first Collective Bargaining Agreement with the Mexican Oil Workers Union is signed
60´s
• The last debt payment of the 1938 expropriation is paid in advance
70´s
• The Petróleos Mexicanos Organic Act is issued. During the seventies, oil-refining is boosted as a result of new oil fields discoveries
• A fisherman, Rudecindo Cantarell, informs PEMEX of an oil stain bubbling from beyond the sea around the Sonda of Campeche. Eight years later, the
Chac well production would lead to the beginning of the exploitation of one of the world’s biggest oil fields: Cantarell
• The drilling of the Maalob1 well confirms the discovery of the country’s biggest oil field after Cantarell. The Ku-Maalob-Zaap asset is, in a global
context, the twenty-third in terms of reservoirs, which equal 4,786 millions of crude oil barrels
90´s
• A new Organic Act for Petróleos Mexicanos and Subsidiaries is issued. It establishes the basic guidelines to define the attributions of Petróleos
Mexicanos as a decentralized government agency of the Federal Public Administration, in charge of leading the national oil-industry
• This Act determines the creation of a Head Office and four Subsidiaries
- PEMEX-Exploration and Production (PEP)
- PEMEX-Refining (PREF)
- PEMEX-Gas and Basic Petrochemicals (PGPB)
- PEMEX-Petrochemicals (PPQ)
2005
• Throughout April, May and June, Petróleos Mexicanos produced an average of 3.425 MMbd. Out of these, 1.831 MMbd were exported to America,
Europe and the Far East. The remainder was sent to the national refining system
2006
• Petróleos Mexicanos has become the biggest Mexican company and one of the biggest oilproducing companies in the world, in terms of both assets
and income
• PEMEX launches Premium Ultra-low Sulfur gasoline
2007
2008
• The seven Decrees comprising the Energy Reform are published in the Federal Official Gazette, on November 28
More information:
http://tv.pemex.com/index.cfm?mode=cat&catid=5B27547C-0766-A1BA-5735270A70C7F927&OrderByDir=asc
• Reconfiguration works are being executed at the Lázaro Cárdenas Refinery. The company promotes the recovery of the national petrochemical
industry and seeks to increase the gas production to meet the domestic demand, and thus, to reduce the imports of this fuel
23
• Petróleos Mexicanos continues to intensify its exploratory activity
SUPPLY SECURITY
Evolution of Reserves
Models of Operational Reliability and Processes Improvement
Infrastructure for Distribution
Maintenance to Guarantee the Supply
PEMEX 2008
24
02
Supply Security
ASPIRATION:
ASSURE THE SUPPLY OF CLEANER HYDROCARBONS TO THE NATION,
THROUGH THE OPERATIONAL RELIABILITY OF ITS FACILITIES AND
THE TRANSPORTATION, STORAGE AND DISTRIBUTION SYSTEMS,
WHILE FIGHTING AGAINST ILLEGAL FUEL MARKET.
Salvador Ortiz Vértiz
Deputy Director of Natural Gas
PEMEX-Gas and Basic Petrochemicals
Deputy Director of Trade
PEMEX-Refining
The natural gas supply within the national territory
has represented a great challenge for PEMEX since 12
years ago. Nowadays, this product is exploited as a
cleaner alternative than fuel oil for processes, such as
electric power generating plants combined with CFE,
cogeneration plants and industrial products. The growing
introduction of natural gas as fuel provides important
benefits to the improvement of air and water quality.
Since 2004, PEMEX gathers opinion surveys from its
natural gas customers, which through the Deputy Office
of Natural Gas follows up on the findings arising from the
surveys, and it has been developing commercialization
strategies that respond to the customers’ needs, such
as maintaining the ISO 9001:2000 Certification for the
commercialization process.
An essential element in the natural gas market is the gas
pipelines infrastructure, for both the primary and main
distribution, such as the secondary network to take the
product to the commercial and household user. In order
to supply to more users and extend the domestic market,
the secondary distribution has been complemented with
the distribution networks building by private companies.
In a future time, a series of projects to interconnect the
Gas Pipeline National System, among which we may
highlight: pipeline of Tamazunchale -San José Iturbide;
pipeline Ciudad Juárez - Chihuahua and pipeline Punta de
Piedra -Poza Rica –Santa Ana.
Nowadays, the pipeline network is interconnected to
receive import natural gas from the United States of
America. The relative importance of imported natural gas
within the domestic consumption has increased. During
2007, imported natural gas represented 15.7% of the
domestic demand; and in 2008, the estimation was 19.6%
During the last four years, the gasoline demand has
increased by 5% per year, which represents an important
challenge for PEMEX, taking into account the product
offer arising from SNR. The lack of balance between
the demand rate compared to the production capacity
may be explained by the surplus in the construction of
hydrocarbons production units, challenge which has
been reasonable overcome until the year 2008, with
actions such as the increase of fuel import, especially
through vessels arriving at the port terminals in Tuxpan,
Madero and Pajaritos in the Gulf of Mexico. On the other
hand, the distribution logistics is to be strengthened
considering important volumes of product marketed all
around Mexico.
The new worldwide economic scenario poses different
challenges in gasoline, diesel and turbosine supply;
PEMEX continues to reinforce its gasoline supply through
the market coordination, especially with the gasoline
stations franchisees and the distribution capacity,
self-transportation fleet and pipelines, thus assisting
the market demand. It is also achieved by concreting
the construction basis for a new refinery supporting the
domestic production increase.
Some supply discontinuity events took place in 2008,
which affected especially some localities due to the
operative stop of the refineries in Salamanca and Tula
for maintenance activities. This represented a special
challenge in order to cover inventories for an especially
intense vacational period, corresponding to the end of
year, which was satisfactorily resolved. During 2008,
ultra-low sulfur diesel supply was consolidated along
the Northern border of the country, and the low sulfur
content gasoline supply in the metropolitan zones such
as Mexico City and Monterrey, representing a challenge
to supply this type of fuel in the metropolitan zone of
Guadalajara in 2009.
FACTS
CHALLENGES
• Country sales for 679,754 MM$, and exports of 644,418 MM$
•The crude oil production (2,792 Mbd) decreased by 9.2% with respect to 2007 mainly
due to the decline of Cantarell field
• Gas production was of 6,919 MMpcd, 14.2% higher than 2007
•Oil products production decreased by 1.4% with respect to 2007 and ended at
1,490 Mbd (especially fuel oil and LP Gas)
• The number of operating wells increased to 303 as compared to 2007, due to the
opening of extraction wells in the Gulf Tertiary Oil Project and the number of nonassociated gas wells increased to 3,120, as a result of the activities in the Burgos and
Veracruz projects
• Eight deep water wells were completed in 2008 (500 m depth)
• Announcement of the construction of the Tamazunchale - San Luis de la Paz - San
José Iturbide gas pipeline for the transportation of 400 MMpcd of natural gas toward
the center and occident of the country in order to supply the new CFE plants operating
in the Valley of México and Salamanca
•Viability of a new refinery in Mexico to process 300 Mbd of Maya crude and 142 Mbd
of ultra-low sulfur gasoline and 94 Mbd of intermediate distillates
•Drilling and completion of 60 exploratory wells in the period 2009-2017
•Maintaining crude and natural gas production in approximately 2.7 to 2.8 MMbd and
6.4 MMMpcd, respectively
•Construction of a cryogenic plant at the CPG Poza Rica with a 200 MMpcd processing
capacity to process the increasing offer of humid sweet gas from ATG.
•Installation of a liquid-elimination system at Nuevo Laredo and Veracruz regions
•Installation of a Nitrogen Rejection Unit (NRU) at the Southeastern region
•Execution of the natural gas pipelines infrastructure projects that connect to the
National Pipeline System in coordination with the regulatory entities
GRI 2.8, 4.11, management approach PR
Models of Operational
Reliability and Process
Improvement
On January 1 2008, PEMEX reported a remnant hydrocarbon
reserve, including oil and gas, for 44,482.7 MMbpce in
Mexico2. The proven reserves represent 33.1%, the most
probable 34.0% and the possible 32.9%. Such values were
audited by external firms, specialists in the subject, and
under international regulations.
IMPLEMENTATION OF OPERATIONAL RELIABILITY
Said reserves have been evaluated according to the criteria and
definitions of the Securities and Exchange Commission
(SEC) of the United States, based on the strategies of
the oil fields exploitation and its associated investment,
the oil fields behavior, the operational and maintenance
costs, as well as on the hydrocarbon sale prices.
SUPPLY SECURITY
PEMEX has presented initiatives and adaptations to the
current exploration and production processes, giving as
a result the new scheme proposal for this process under
the PEMEX Institutional Strategy, which has been traced
in six key stages together with the actions to implement:
02
• Oil-producing potential evaluation
To evaluate the oil-producing potential, its associated risk
and economic value at an oil basin and oil-producing
system level, among others
• Reserves incorporation
To discover and evaluate hydrocarbons reserves according to an approved exploratory strategy, maximizing the added economic value
• Oil fields delimitation
To determine the spatial distribution of the discovered
oil fields and reduce the uncertainty on the estimated
reserves through the acquisition of new information
• Field development and optimization
To plan and select the optimal strategy to maximize the
aggregated economic value of the reserves
• Oil fields exploitation
To execute, control and evaluate the wells operation
and the exploitation infrastructure, based on the
selected strategy
• Conditioning and primary distribution
To transport, condition and distribute the produced
hydrocarbons, meeting the costumer needs, in terms
of quality and opportunity
2
The total remanent reserves, also known as 3P, correspond to the addition of the proven, probable and possible reserves
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
26
Source: Mexico’s hydrocarbon reserves at 2008 PEMEX
Hydrocarbons (MMbpce)
Oil (MMb)
Natural Gas (MMpc)
PEMEX 2008
In 2008, the documentary structure for the model
of Operational Reliability, “PEMEX Confiabilidad”, was
integrated and concluded. It is comprised of the Technical
Manual and the Technical Guides for the 14 Best
Practices, to focus the activities on achieving results and
not only on task compliance.
THE 14 BEST PRACTICES OF “PEMEX CONFIABILIDAD”
• Life cycle costs
• Maintenance
• Skills certificate
• Costos de ciclo de vida
• Sustaining reliable practices
• Cleanliness and order
• Planning and scheduling
• Protective function
• Operational windows
• Repairs Management
• RBI, RCM/FMECA
• Census and Taxonomy
• Work Management
• Warehouses and Supplies, at five implementation levels
These practices conceptualize the initiatives of top priority
in terms of their contribution to results and their correlation
with the company’s required effort. It bears noting that
there are other identified actions, providing, thus, additional
factors to the reliability systems, which will be incorporated
as the Operational Reliability Route progresses and
according to the maturity of each Work Center.
PROGRESS IN THE IMPLEMENTATION OF THE OPERATIONAL
RELIABILITY MODEL
The progress in the implementation of this model is
measured in specific categories for each Subsidiary. At
the end of 2008, PEMEX-Exploration and Production,
PEMEX-Gas and Basic Petrochemicals and PEMEXPetrochemicals achieved a 100% of implementation, while
PEMEX-Refining only 93%.
CATEGORIES MEASURED IN “PEMEX CONFIABILIDAD”
• Diffusion progress
• Designation of Coordinators
• Self-evaluation Progress
• Identification of opportunities
• Development of work programs
EVOLUTION OF THE COUNTRY’S HYDROCARBON RESERVES
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
At the end of 2007, PEMEX’s Board of Directors authorized
the Operational Reliability model. It is an integral
business initiative implemented in 2008 that is aimed
at ensuring the supply of the fossil fuels nationwide. It is
based on four pillars: Human reliability, Design reliability,
Equipment reliability and Process reliability.
Training is a fundamental element for the sustainability of
the Operational Reliability. For that reason, the promotion
of personnel training and certification on methodologies
regarding reliability and predictive techniques continues.
The Risk Based Inspections (RBI) were completed at 11
plants: Gas Sweetening Plant 11 and Modular Cryogenic
6 at CPG Cactus, Core Services Plants, Ethylene, Oxygen
and Polyethylene at CPQ Morelos, Plants FCC 1, FCC 2,
Alkylation and BA Primary in the Madero Refinery, as well
as PEMEX-Refining’s Storage and Distribution Terminal at
Topolobampo.
Similarly, the following documents concerning to
standardized guidelines and procedures were completed:
• Technical Guide for evaluating short circuit studies and
coordinating protection to the electrical systems
• Technical Guide for evaluating the link between PEMEX
substations and CFE
• Technical Guidelines for mechanical vibrations
acceptance levels in the centrifuge pumps at PEMEX’s
facilities
• Criteria to integrate the resources spent in
maintenance
• Technical Guide to assess the pre-start safety
• Handbook of Inspection, Maintenance and Testing of
Pressure Relief Valves in PEMEX
MANAGEMENT SYSTEM BY PROCESSES
As part of the standardization of business processes
and practices, a new Management System by Processes
model has been designed, implemented and redesigned
since 2003, until its consolidation during 2008. This was
accomplished with the assignation of the responsible
committees, the formalization of the management by
processes, the identification of process improvement
initiatives and the management improvement program
kick off, among other activities.
Under this model, the following benefits are identified for
the process improvement projects:
1. They will allow to identify the initiatives from the
Government structures of each one of the processes in
PEMEX’s catalog (representatives of the Subsidiaries,
advisers and guests form other areas of PEMEX)
2.A portfolio comprising the process improvement
projects, previously documented and justified, will be
arranged
3.Planning, follow-up, control and evaluation methods
for projects will be applied
27
With this model, Management has evolved from being
function-oriented to process-oriented, taking advantage
of the existent synergies among the different functions
executed in the Subsidiaries, and focusing on the primary
processes of PEMEX’s value chain.
GRI 2.8, EN29, PR5, 2.9
Infrastructure for
Distribution
CURRENT DEMAND OF OIL FUELS DISTRIBUTION
It is estimated that the consumption of gasoline and
diesel will continue to increase until 2015 with an
annual growth rate of approximately 3.4%. As regards
oil fuels, PEMEX faces an important infrastructure lag in
production and transportation, as well as in distribution
and product handling, which has an impact that can be
reflected on its operational flexibility.
INFRASTRUCTURE FOR PRODUCTS SUPPLY
SUPPLY SECURITY
PEMEX was still, during 2008, the third crude producer,
the fifteenth gas producing company and the thirteenth
regarding refining capacity in the world. This has
been possible because of the infrastructure and the
distribution and production capacity for the supply of
diverse generated products, described as follows:
02
HYDROCARBONS PRODUCTION INFRASTRUCTURE
ENTITY TYPE OF INFRASTRUCTURE
2006
2007
2008
364
352
344
6,080
6,280
6,382
199
215
225
6
6
6
Oil production fields
Extraction wells
Ocean platforms
AUTO-TANKS AND OIL TANKER VESSELS SUPPLYY BUQUE
TANQUES
To satisfy the service stations’ demand fuels in a timely and
safely manner, PEMEX has a fleet of 1,324 auto-tanks that
make 6,760 trips per day in order to distribute 1.3 MMbd of
gasoline and diesel, and 20 oil tanker vessels with a capacity
of more than 840,000 DWT to transport and distribute 35%
of total fuels needed in Mexico.
Currently, 5.7% of the fuels are transported by autotanks, in comparison with 3.4% almost ten years ago. To
meet the demand, in some cases, third-party operated
units are used (3,137 units in 2008 with respect to 2,882
in 2007). The exceptional 160% increase registered
during December, 2008, was the result of the heavy
fuel oil transferring from the Miguel Hidalgo Refinery,
which required the incorporation of additional properly
equipped units.
The contract for the acquisition of 356 auto-tanks was
formalized in 2008. These units were delivered to their
destination together with the relevant training provided
by the supplier, and in compliance with the established
contract term. In the past two years, 677 units have been
acquired and 990 workers have been trained.
Refining
Refineries
Petroleum products storage and
distribution terminals
Service stations
77
77
77
7,554
7,940
8,351
12
10
12
Gas and Basic Petrochemicals
Gas Processing Centers
Cryogenic Plants
19
19
20
LPG distribution terminals
20
20
19
8
8
8
Petrochemicals
Petrochemical complexes
PRODUCTS DISTRIBUTION INFRASTRUCTURE / HYDROCARBONS
PRODUCTS TRANSPORT INFRASTRUCTURE
PEMEX 2008
28
TYPES OF TRANSPORT, 2008
Oil tanker vessels
To be excluded
Operating
Rented
Financing leasing
Total
Inland Auto-tanks
Owned until 15,000 L
Owned from 15,000 to 20,000 L
Owned from 20,000 to 30,000 L
Leased above 30,000 L
Total
PRODUCTS SUPPLY INFRASTRUCTURE
NUMBER
6
7
9
4
26
0
1266
81
2821
4,168
CAPACITY
TYPES OF TRANSPORT
(barrels)
0
1,942,164
1,159,114
1,249,646
4,350,924
(barrels)
0
1266
81
2821
4,168
Pipelines
Production pipelines
Oil pipelines
Gas pipelines
Oil fuels pipelines
Basic and secondary petrochemicals
Others*
Total
*PPQ includes pipeline rack
Source: Institutional database
LENGHT, KM
2007
22,009
9,407
16,693
9,105
2,096
2,463
61,773
2008
23,419
9,750
16,945
9,533
1,822
2,568
64,037
Maintenance to Guarantee
the Supply
MAINTENANCE PROCESS AS PART OF THE MANAGEMENT
SYSTEM BY PROCESSES
The Inter-subsidiaries Advisory Commission of Maintenance
was formally set up in 2005; this Commission and the
Deputy Office of Maintenance Coordination have boosted
the implementation of the following initiatives in 2008:
Operational Reliability
The Operational Reliability is an Integral Business Initiative
for all the company in order to achieve, in a safely and
sustainable manner, the highest possible values for the
assets regarding matters such as life cycle effectiveness,
utilization, productivity and profitability.
As regards the implementation of “PEMEX Confiabilidad”
in the company, training activities and development
of work programs were completed at the end of 2008
in accordance with the established program. Its
implementation in Work Centers will start in 2009.
Likewise, as a fundamental element for the sustainability
of the Operational Reliability, training activities and
personnel certification (if applicable) has been promoted
on predictive techniques and reliability methodologies at
the Subsidiaries and Executive Offices.
The Program of PEMEX-Refining to Replace the Distribution Fleet
This program will replace a total of 1,150 ten-year-old units with an investment of 1,451 MM$. With the operation of these fuel-transportation units,
with a capacity of 20,000 liters each, plus 321 auto-tanks from the first stage of the program, PEMEX complies with the substitution of 677 ten-yearold units. These two stages have represented an investment of 837 MM$.
It is worth noting that this is the first time the in land fuel-transportation fleet has been totally replaced. The program to replace the distribution fleet
of PEMEX-Refining is part of the strategic initiatives of the General Director’s Office of Petróleos Mexicanos, oriented to the reinforcement of the
environmental protection actions and the improvement of the customer and consumer service.
As regards the sea route distribution, the following oil tanker vessels were incorporated during 2008: Chicontepec, Burgos, Bicentenario and Tampico
under the financing leasing scheme, as part of the fleet replacement strategy of PEMEX-Refining. With this, the leasing of three oil tanker vessels was
concluded.
Study on the Viability of a New Refinery
In July 2008, PEMEX-Refining submitted to the Congress of the Union the “Study on the Viability of a New Refinery in Mexico”, as an integral strategy
aimed at overcoming the current production stagnation and modernizing its facilities. The strategy is part of the PND 2007-2012 and the 2007-2012
Energy Sector Program.
Internal and External Context
It was observed that during 1997-2007 the global refining capacity increased at annual average rate of 1%. According to projections for 2008-2014,
it is perceived that projects for 2.8 MMbd will begin operation in the American continent; two 500 Mbd refineries in Brazil, one 400 Mbd refinery in
Venezuela, two in Canada with a total of 450 Mbd and eight projects in the United States to increase by more than 700 Mbd the production of refined
products.
Infrastructure Development Challenges
The reconfiguration of the infrastructure required by the refining system in order to increase its capacity and to produce clean fuels implies the
construction of 80 plants at the same time, additionally to the necessary works for the projects of storage and distribution infrastructure.
The simultaneous development of projects requires providing the company with the tools to increase its execution capacity, considering the competition
with the rest of the world as to raw materials for construction and the limited capacity of engineering, construction and equipment manufacturing
worldwide.
OPERATIONAL RELIABILITY
International standard
PEMEX: INDEX OF UNSCHEDULED SHUTDOWNS (%) Excludes environment causes and lack of loads (January – December 2008)
PREF - SP
PGPB - SP
PPQ
6
2.0
1.5
4
1.0
PEP
10
10
8
8
6
6
4
4
2008 9.0
2007 9.0
2006
0
2005
2.4
2008
2.8
2007
5.2
2006
0
2005 10.5
2008 4.1
2007 4.9
2006 3.3
0
2005 5.1
1.4
2008
2007 0.8
1.2
2006
0
2005
0.5
2.1
2
In order to have a higher-integrity vision on the evaluation
of the asset performance and, thus, on the determination
of the main areas of opportunity, the mechanical availability
and the utilization of the productive facilities have been
integrated under the same context; the process plants and
the storage and distribution terminals have been firstly
incorporated, the results of which in 2008 were as follows:
These indicators will be used to focus the company’s
efforts on the business’ effectiveness, integrating and
reflecting the contribution of available assets, production
values and quality level as a relevant part of the
profitability of the Work Centers.
As for PEMEX-Exploration and Production, its measurement
is planned to begin in 2009.
Triennial Maintenance Plan
• Systemize the Releases and Major Repairs
Management, through an electronic solution
• Establishment of guidelines for the 2009-2011
Triennial Maintenance Plan development; this plan was
the basis for the 2009 maintenance budgetary request
AVAILABILITY AND USE OF PROCESSING PLANTS (%)
PEP will disclose information on the use of its facilities as of 2009
Mechanical availability
Scheduled POT I shutdowns
Transition
Mechanical availability standard 94-97%
PPQ
Cadereyta Prog.
Cangrejera Prog.
Real
Nuevo PEMEX
Real
Madero Prog.
Ciudad PEMEX
Real
Área Coatza
Morelos Prog.
Minatitlán Prog.
Real
Real
Poza Rica
Salamanca Prog.
Reynosa Burgos
Cosoleaque Prog.
Real
Real
Salina Cruz Prog.
Real
Pajaritos Prog.
Tula Prog.
100
0
100
80
40
100
80
60
40
20
80
Real
Real
60
Arenque
40
Matapionche
20
La Venta
0
Utilization
Unused capacity
Unscheduled shutdowns
PREF - SP January-December 2008
Cactus
30
• The allocation of resources and their application in
2008, allowed the attention of A and B findings of
mechanical integrity (493), I and II agreements of
the Mixed Commission on Health and Safety (850)
and A and B (421) recommendations of the insurance
companies that will support the operational reliability
and the facilities’ security
• Continue with the audit practice to verify the
compliance with the Institutional Procedure of
Releases and Major Repairs Management
PGPB - SP
PEMEX 2008
• Integration of plans, programs and budgetary
requirements into the 2008-2010 Triennal Maintenance
Plan. Throughout 2008, the allocation of resources
was mostly for the investment budget. A total of
41.9 billions of pesos was used by the Subsidiaries,
which preliminarily represented 99% of the allocated
resources
Regarding the releases and major repairs management, the
results on program compliance reflect an improvement
from 50% in 2005 to 70% in 2008; main actions were
aimed to:
20
02
As part of the actions to standardize the identification
process of the necessary financial resources for the
maintenance management, the following activities were
carried out:
PGPB and PPQ’s results on this indicator reflect a
consistency over the last two years, close to the
international standard. PREF shows an improvement
and its variances are mainly due to the non-scheduled
shutdown of one of its plants (HDR) in the Refinery
of Tula; regarding PEP, its measurement at a critical
equipment level of the last two years presents an
improvement tendency during the last half year of 2008.
0
SUPPLY SECURITY
Another performance indicator, as a complement to the
utilization level, is the non-scheduled shutdown rate, which
reflects its behavior for each Subsidiary.
60
GRI 4.10, 4.11
PEMEX executed the project entitled “Transference of
the Benchmarking Model Knowledge Supported by the
Complexity Factor of Petróleos Mexicanos’ Facilities”,
which included training activities for the Subsidiaries and
Executive Offices’ personnel on such methodology.
Monitoring of Asset Performance Indicators
“Fighting Against the Illegal Fuel Market”
As a measure to prevent and mitigate clandestine taps and hydrocarbons theft for its consequent trade in the illegal fuel market, the “Fighting
Against the Illegal Fuel Market” program tackles actions of detaining and turning in those presumed responsible for these illegal acts. This program is
conducted by the PEMEX Physical Security Management Personnel and the Mexican Army.
Fuel theft is a practice that threatens the Mexicans’ patrimony and put the community’s safety at risk. For this reason, the program allows public in
general to participate through the anonymous report on any anomaly detected:
Telephone 01800-2289660 and e-mail address [email protected]
As a result of the strategies implemented in collaboration with PEMEX-Exploration and Production, the Secretariat of Defense (SEDENA, Spanish
acronym), the Secretariat of the Navy (SEMAR, Spanish acronym), the Attorney General’s Office (PGR, Spanish acronym) and the Office of Investigation
Specialized in Organized Crime (SIEDO, Spanish acronym), it was possible to detect and eliminate 1,432 clandestine taps to avoid losses of about 49
MM liters per month, which at an average price of 6.74$ per liter, represents 3,963 MM$. It bears noting that the States with the highest incidence of
clandestine taps were Veracruz, Estado de México, Puebla, Chihuahua, Coahuila and Nuevo León.
During 2008, the closure of 29 clandestine taps avoided the theft of 600,000 barrels of product by means of instrumented pipeline inspection gauges (IPIG).
AVAILABILITY AND UTILIZATION OF STORAGE AND DISTRIBUTION TERMINALS (%)
Mechanical availability
Scheduled POT I shutdowns
Utilization
Unused capacity
Unscheduled shutdowns
PGPB - GLPB
Transition
Mechanical availability standard 94-97%
PREF - SAR January-December 2008
North
Abasolo
Cactus
Cd. Juárez
Gulf
31
Matapionche
Poza Rica
Puebla
Pacific
Salina Cruz
Tepeji
Topolobampo
Center
Tula
100
80
60
40
20
0
100
80
60
40
20
0
Zapopan
TRANSPARENCY AND DIALOGUE
Corporate Governance
Transparency and Oversight
Collaboration on Public Policies
Fines and Sanctions for Non-Compliance
PEMEX 2008
32
03
ASPIRATION:
PETRÓLEOS MEXICANOS WISHES TO BE RECOGNIZED BY SOCIETY AS
THE MEXICAN LEAD COMPANY, BEING TRANSPARENT AND ENJOYING
THE CAPACITY OF DIALOGUE IN ITS MANAGEMENT, AS WELL AS BEING
RELIABLE ON ITS DECISIONS AND AN EXEMPLARY CORRUPTIONFIGHTING MODEL.
Social Communication Corporate Manager
As regards transparency, the year 2008 was a fruitful
year. The debate on the Energy Reform has allowed
many citizens to be aware of the complexity and
challenges daily faced by the national oil company. In
this regard, PEMEX has contributed to a higher level
of knowledge generating a great deal of information
about the daily operation and activity.
The dissemination of the PEMEX’s Diagnosis at the
beginning of 2008 highlights its scope and insight.
This is the first public comprehensive diagnosis that
shows the company’s situation and all its challenges.
Said document was the basis for a later discussion of
the Energy Reform, enriched with several documents
available to the public opinion on the web site of PEMEX.
The approval of the Energy Reform in October
2008 is an important step toward the company’s
transformation, which will represent a milestone
for PEMEX regarding transparency and corporate
government. The introduction of four professional
consultants and new supporting committees into the
Board of Directors and the several modifications in
the legal framework will contribute to the company’s
evolution in the correct direction: toward a more
opened company, closer to society.
It is important to point out that the PEMEX’s policy
regarding transparency includes informing on events
which, as part of a risky industry, the company is
exposed to suffering. The generation and disclosure of
information regarding the accident in the Usamacinta
Platform in October 2007 is an example. PEMEX
required an independent investigation. For that
purpose, an Independent Special Commission was
formed, chaired by the Nobel Prize of Chemistry, Dr.
Mario Molina, whose mission was to issue an opinion
on the accident investigation results.
The investigation carried out by the Battelle Memorial
Institute, one of the specialized institutions
internationally recognized, resulted in a document of
more than 900 pages. The results of said investigation,
as well as the conclusions by Molina Commission, in
accordance with the company’s transparency policy,
were totally published in October 2008.
As regards transparency, 2009 is a year of multiple
and important challenges. On the one hand, PEMEX
has the highest investment budget in all its history,
which demands more transparency and accountability
on the allocation of said resources. It is important to
recognize that the public perception regarding this
links said processes with a given level of opacity. To
deal with such a concern, a dissemination mechanism
of all relevant bids was implemented, from the calling
to bid to the final awarding, the purpose of which is
to make the whole bidding process of PEMEX’s large
works transparent.
Finally, at PEMEX we want that the society to get
involved with the company, and therefore, open
channels and linking tools have been implemented.
In this regard, the Project Chicontepac ATG is an
example of a new way of doing things in PEMEX,
introducing, from the design, co-responsibility
mechanisms translated into a higher transparency
and accountability for the company’s actions.
FACTS
CHALLENGES
•Presentation of the Petróleos Mexicanos’ Diagnosis
•Presentation of the deep water diffusion campaign
•The President presented an Energy Reform proposal. Its debate was based on the
company’s diagnosis
•PEMEX makes public its safety indexes
•Presentation of the results on the research on the Collision between the Usumacinta
and the KAB -101 platforms
•Energy Reform approved on October 28
•Design of a program and communication tools with the indigenous communities
related to ATG Project
•Transparency in the selection of the new refinery location
•Diffusion and understanding of the new contracting model during the last half year
represents a challenge regarding transparency matters
•Diffusion of the channels of communication and tools that PEMEX offers to citizens
GRI 4.1, 2.3, 2.6, 4.2, 4.3, 4.7, 4.5, 4.6, 4.4, 4.9, 4.10
The Governance structure of PEMEX in 2008 was
composed of the Board of Directors, a Chief Executive
Officer and an Internal Control Body.
During 2008, the Management structure was made up of
four corporate offices: Administration, Engineering and
Project Development, Operations and Finance.
Additionally, PEMEX is integrated by four Subsidiaries:
PEMEX-Exploration and Production, PEMEX-Refining,
PEMEX-Gas and Basic Petrochemicals, and PEMEXPetrochemicals; each having its own operational
structure and Board of Directors.
Additionally, the Energy Reform, within the decree that
publishes the Petróleos Mexicanos Act, provides for the
creation of seven committees of support for the Board of
Directors.
The Federal Act of Responsibilities of Public Servants
establishes regulations for the members of the Board of
Directors and the Committees to prevent conflicts of
interest and the applicable sanctions. Furthermore,
because of the legal characteristics of the company,
there is no retribution in cash or in kind for the Directors,
except for the professional Directors whose remuneration
will be established in the Expenditure Budget of the
Federation.
PROPERTY AND ADMINISTRATION
PEMEX is a decentralized government agency, the
purpose of which is the exploration, exploitation, central
conduction and strategic direction of the oil industry. It is
controlled by a Board of Directors and a CEO designated
by the President.
03
The Board of Directors was made up as follows:
BOARD OF DIRECTORS
11 Board Members
Executive Branch
6 Board Members
Union 5 Board Members
The Energy Reform proposes a new structure of the Board
of Directors:
BOARD OF DIRECTORS
15 Board Members
Executive Branch
6 Board Members
Union
5 Board Members
Professional
4 Board Members
The Board of Directors’ main functions, among others,
include the following:
• Central conduction and strategic direction of PEMEX
• Supervision and evaluation of PEMEX’s performance
• Approval of PEMEX’s business plan, which will be
developed based on a five-year projection, in accordance
with the national energy policy on an annual basis.
• Approval of projects, operational and financial
programs, budget and adaptations, financial
statements, contractual terms and conditions for
constitutive obligations of public debt, proposal of
constitution of the Subsidiary Entities and Affiliate
Companies, and to supervise the work of the support
committees
PEMEX has an Internal Control Body that supervises the
company’s operations. Besides, Superior Audit for the
Federation and an external Firm audit the company’s
activities, thus guaranteeing transparency in the
performance of its functions.
The new Petróleos Mexicanos Act reinforced the Oversight
Structure with the establishment of a Statutory Auditor
and an Audit and Performance Evaluation Committee.
EMPLOYEES’ MECHANISMS TO COMMUNICATE WITH THE
TOP GOVERNMENT BODY
Petróleos Mexicanos’ ICB, through its Complaints
Department, makes available the means comprising the
Citizen Service System for registering complaints, claims
and follow-up on irregularities, suggestions, requests and
recognitions. The above is intended to support general
citizens and workers who access the system, as well as
the company in its ongoing improvement and for
investigating abnormalities incurred by public servants
from said organization, implementing preventive and
corrective actions that provide transparency to the public
function.
BOARD OF DIRECTORS
General Director’s Office
INTERNAL CONTROL ENTITY
CORPORATE MANAGEMENT
OFFICE
CORPORATE ENGINEERING AND
PROJECT DEVELOPMENT OFFICE
CORPORATE OPERATIONS OFFICE
CORPORATE FINANCE OFFICE
PEMEX
EXPLORATION AND PRODUCTION
PEMEX
REFINING
PEMEX
GAS AND BASIC PETROCHEMICALS
PEMEX
PETROCHEMICALS
The Institutional Policy of PEMEX seeks to consolidate
a culture of transparency, accountability and anticorruption within the entire company, as well as to
incorporate the best practices in such matters. The new
Petróleos Mexicanos Act has enhanced the transparency
and accountability mechanisms by incorporating
the Accountability and Transparency Committee,
and creating the Citizens Bonds, which constitute an
innovative mechanism of social controllership.
TTRANSPARENCY AND ACCOUNTABILITY
TRANSPARENCY
PEMEX’S TRANSPARENCY TOOLS
WRITTEN MEDIA
“We the Oil Workers” gazette
Mural Journal
Brochures, pamphlets, flyers, posters
Messages on payroll receipts
Canvases
Annual Report
Statistical Yearbook
Operations Report
Reserves
Reports to Congress
Among others
INTERNAL ELECTRONIC MEDIA
PEMEX Intranet Portal
News and announcements
Internal Memos
Banners
Ministers
The Institutional Policy of Transparency is focused on two
objectives: to institutionalize transparency and to provide
more and better information to the citizens.
Information published in PEMEX.com
Economic:
Financial Statements
Audited Financial Statements
Budgetary follow-up
PEMEX in Numbers
Reports to the National Banking
and Securities Commission
Reports to the Securities and
Exchange Comission
Economic and Production Data Forecast
PEMEX Overview
PEMEX in Figures
PEMEX received 4,304 information requests during
2008 through the different available channels and in
compliance with the above-mentioned Federal Act. At the
end of 2008, 3,975 requests were responded, leaving
265 in process, in accordance with the terms established
in such Act.
OVERSIGHT STRUCTURE
EXTERNAL
INTERNAL
EXTERNAL AUDITOR
COMMISSIONER
AUDIT AND PERFORMANCE
EVALUATION
SUPERIOR AUDIT OFFICE
OF THE FEDERATION
INTERNAL CONTROL
BODY
Social:
Social development statistical information
Ongoing Bids
Social witnesses’ reports
Engagement in public policies
Collective Bargaining Agreement
Operational:
Annual Report
Statistical Yearbook
Hydrocarbon Reserves
Operations Report
Statistical labor report
Oil-industry indicators
Environmental:
Remediation of the former 18 de Marzo Refinery
Texistepec Remediation
DISTRIBUTION OF INFORMATION REQUESTS
BY ENTITY
1814
1093
871
245
217
HO
PEP
PREF
PGPB
PPQ
35
Since the Federal Act of Transparency and Access to
Public Governmental Information came into effect,
Petróleos Mexicanos and its Subsidiaries have complied
with the obligations resulting from it, its Regulations and
its specific Guidelines.
EXTERNAL ELECTRONIC MEDIA
In order to institutionalize transparency, PEMEX publishes diverse reports on its operational and financial results,
as well as on its sustainability performance including
economic, environmental and social indicators. The
publication of information and transparency obligations
has motivated society to visit www.pemex.com which
registered more than two million visits, and half a million
consulted the company’s transparency portal.
GRI 4.10, SO5, SO2
ACCOUNTABILITY
The Institutional Policy of Accountability is focused on
three aspects: institutionalization of citizen participation,
collaboration on the designing and implementation of
relevant public policies and improvement of the corporate
image, as well as gathering opinions from different social
groups and enterprises. These topics were considered in
several public policies along the 2008 Accountability and
Transparency Program.
Citizen Participation
In order to institutionalize Citizen Participation, Petróleos
Mexicanos has designed different forums in which
transparency, accountability and anti-corruption issues
are tackled.
Improve Corporate Image
The perception meters are linked to the opinion surveys
applied annually to the processes. During 2008, the following opinion surveys were conducted:
PEMEX 2008
36
03
• Acquisitions
• Public Works
• Trading
• Treasury (integrated in acquisitions and public works)
The Transparency Perception Rate (IPT, Spanish acronym), which is annually estimated from opinion surveys
and used as a measurement and follow-up mechanism,
has a three-dimensional conformation: during 2008,
2,592 questionnaires were gathered. 1,175 concerning acquisitions, 600 concerning public works and 817
concerning trading. The survey results are under review
for the generation of the 2008 IPT, both in global terms
and by subject.
COLLABORATION ON THE DESIGN AND IMPLEMENTATION
OF PUBLIC POLICIES
In accordance to the PND, the Commission on
Transparency and Fight against Corruption, in charge
of coordinating efforts to provide transparency to the
Federal Public Administration Management, stated the
2008 Accountability and Transparency Program. Said
program is comprised of 14 subjects, with products and
results to allow driving diverse public policies in the
Federal Government’s entities and departments.
The Commission on Transparency and Fight against
Corruption stated both the scope and the objectives
of the actions to be carried out on each of the subjects
contained in the 2008 Accountability and Transparency
Program; thus, the participation of Petróleos Mexicanos,
its Subsidiaries and Affiliated companies was aligned to
the government’s purpose. The company participated as
follows:
ANTI-CORRUPTION
The Institutional Policy of Anti-corruption is focused on
two objectives: to penalize those responsible for illegal
acts and to prevent such acts. The first objective is under
the responsibility of PEMEX and its Subsidiaries’ ICBs and
the Secretariat of the Public Function.
The second objective involves seven macroprocesses to
be incorporated to the Accountability and Transparency
Program — within the topic “Actions to Prevent Anticorruption and Indexes Analysis”, to control, reduce and
eliminate risks.
The macroprocesses selected from the corruption risk
map and their objectives are:
MACROPROCESS
OBJECTIVES
Goods, leasing and services supply
Generate a higher level of confidence, equity and certainty in the participants during the recruitment, as well as
simplify, homologate and make transparent the main activities of the recruiting procedures.
Public Work Administration
Turn the Public Work Administration into a model of transparency and integrity that generates the confidence of
contractors on the institution and improves the citizens’ perception with respect to the process.
Reliability on the control
mechanisms of the Treasury
process
Have a financial process that complies with international standards of transparency and control in the generation
of financial information, as well as the inclusion of elements regarding invoicing and public bidding processes that
contribute to the company’s transparency and accountability.
Control and monitoring on products
and/or customers
Facilitate, make transparent and more efficient the process and the commercial relations of Petróleos Mexicanos
and Subsidiaries, in order to provide certainty to customers about their legality and opportunity.
Oil fuels supply chain (illegal
market)
Eliminate the illegal market of fuels through actions aimed at fighting fuel theft, adulteration and sale of products
that are not distributed or commercialized by PEMEX.
Indemnities and complaints
Reduce or eliminate the adverse effects such as complaints and disagreements; develop and establish information
technologies to make more efficient and control operations; increase transparency in processes and procedures;
and professionalize the public service.
The actions to control risks in these macroprocesses
continued during 2008 and were determined taking
into consideration both preventive and reinforcement
elements, so as to achieve a better latent risk control.
2008 RESULTS
Acquisitions
(procurement, leasing and services)
The development of the Electronic Witnesses: web cameras at the facility where public biddings take
place and the appropriate technology for their on-line transmission.
The Public Acts Conduction Protocols for bidding processes are updated and homologated as a practice
that continues to contribute in reducing, among the personnel responsible for the Recruiting Public Acts,
potential acts that may result in disagreements.
The Suppliers Classification mechanism was improved: suppliers are now registered by class, type of company
and pertaining Chamber or Industrial Association, so as to substantially improve the support to PYMES.
Administration of public works
The Institutional System for Registering and Evaluating Contractors was improved: it will now allow
speeding up the contracting process and reduce proceedings.
The Works Supervision course continued for public servants in charge of executing the works of PEMEX
and Subsidiaries; they are more qualified for performing their functions.
The Control System for Work Volumes was improved: it is expected to be the foundation for the electronic
payment continuity.
The first stage of the Unit Price Catalogue, which included the revision of concepts and scopes of the
general catalogue, has been completed. This information has been integrated into the database of the
C-Projects Management Catalogue and is already available in the Intranet for consultation by personnel.
The Contracts Formalization and Management System, which was suspended until the new Energy
Reform regulations, is currently in process of analyzing and determining the required adjustments to the
system’s technical specifications.
Transparency on
financial information disclosure
Joint work programs were carried out by Subsidiaries, corporate managements and PMI, as well as
with PEMEX’s personnel for defining the scope of the review, updating the internal control documents,
assessing the design, performing process walkthroughs, and conducting effective operative tests.
PEMEX also encouraged the control culture through talks to the Subsidiaries’, Executive Offices’s and
PMI’s personnel on the objective of the Sarbanes Oxley Law and the methodology used for compliance.
Similarly, the personnel responsible for administering the tests at the different work centers were trained.
A report on the result of the control assessment is currently being prepared. This information will serve
as the basis to consolidate the annual report on the effectiveness of the Internal Control System of
PEMEX at the end of the fiscal year 2008.
The Internal Control System with which it is assured that the financial information disclosed to the
authorities and International financial institutions is properly documented and supported.
A subject of great importance for the company and its suppliers is that related to payments. The actions
developed as to treasury led to an important improvement in payment management and a better link with
the suppliers, service providers and contractors.
During 2008, the implementation of mechanisms to receive electronic invoices, which complete
the automation of the process from the purchase order, continued. To reinforce this, the disclosure
campaigns promoted the use of electronic means between the creditors so that they may directly consult
their payment status.
At the end of 2008, Petróleos Mexicanos and its Subsidiaries issued more than four million Electronic
Invoices, thus obtaining meaningful transparency, simplification, control, budgetary savings, and
environment protection benefits.
The training and certification related to the electronic invoice process was completed; the training and
certification for the reception process of electronic invoices started.
37
Likewise, work on Linking Modules between the operational and financial areas was performed to
introduce the documents before the invoicing stages and, in the Electronic Invoicing and Documenting
modules, with which assistance time is to be reduced.
Reliability of the Treasury
process control mechanism
GRI 4.7, SO3, 4.8, HR1, SO4, SO6, SO7, PR6
2008 RESULTS
Control and follow-up
of products and/or customers
Compliance with the liquefied gas distribution program: PGPB informed that during the year, claims
arising from lack of compliance to the liquefied gas distribution program were not filed.
Commercial information dissemination: PPQ. The Ammonia Forum was held in the Northeast of the
country, with the participation of 500 people. Seven issues of the Electronic bulletin “El Polímero” were
issued; 6 issues of the electronic bulletin “Infórmate” were issued; in the case of methanol, 12 bulletins
were sent to the principal customers: Rexcel, Química Delta and Dow. PMI informs the customers on the
updating of crude oil pricing formulas. PR. 31 advertisements were published in the Commercial Portal,
besides 3 issues of the Octanaje Magazine and a Special Magazine on the 70th Anniversary of PEMEX.
Customer claims assistance: PPQ. The satisfaction level related to the claims assistance during the
January-December 2008 period was 0.90, which ranks as “good” (0.86 – 0.90). PMI. Claims arising
form PR were not received in the Customer Contact Center; 40 calls were received and dealt with during
the fourth quarter of 2008. A procedure was developed to attend to the claims of Wholesale customers.
Technical support to customers and commercial process control: PPQ. 17 training courses were provided
to customers and 14 visits were made to companies which were rescheduled. PR. 23,844 commercial
visits were made related to technical supervision to Service Stations. Additionally, 11,673 quality
verifications were made, detecting 19 with out-of-specification products.
The review actions of the legal framework and internal regulations to assure agility and transparency
of customer service resulted in the Board of Directors of PEMEX-Refining approving the creation of the
Credit Institutional Committee of PEMEX-Refining, as well as the relevant Operation Rules.
Compliance with the shipment program (quantity, opportunity and quality).The customer service rate
for December was 86.14%; the accumulated average from January to December was 95.26%. Lastly,
as regards the Control and Follow-up of Products and/or customers, the customer opinion survey was
completed. The survey company delivered the study results, and the Transparency Perception Rate
calculation is still pending.
PEMEX 2008
38
03
Oil products supply chain (illegal market)
As regards the fighting against the illegal fuel market, 1,432 clandestine taps have been detected
and removed, which has allowed reducing considerably the losses caused by fuel theft. The time gap
between the tap installation, and its detection and dismantling has been reduced; the persistence of the
crime is still high. The States with higher incidence of clandestine taps are: Veracruz, State of Mexico,
Puebla, Chihuahua, Coahuila and Nuevo León.
Of 13,000 scheduled inspections, 11,673 inspections in gas stations were performed; 19 were found
with out-of-specification products. 267 simulated consumer actions were carried out in gas stations to
quantify the product sold, detecting 81 cases of incomplete liters that were reported to the PROFECTO;
of these, 51 had the “Cualli” certification.
Six technical-operative assessments and 97 follow-up reviews were performed in work center of PEMEXRefining. The findings and the respective recommendations were notified to the assessed operative areas
for appropriate attention.
In November 2008, the agreement for reestablishment of the tank car satellite tracking signal was
executed, which implies the individual and gradual substitution of SIMs installed in each unit. In January
2009, the installation and configuration of these SIMs continues, and it is estimated that the process will
be completed by the first half of this year.
Indemnities for appropriations and claims
In order to improve the process and for transparency’s sake, plans and strategies for homologation of
Appendix “AE” (Spanish acronym for External Matters) were developed in the four regions of PEMEXExploration and Production (PEP). Its validation by the General Attorney’s Office is in process and
formalization by the General Management of PEP is pending. Similarly, actions for consolidation of the
processes, regulations, policies, and criteria for dealing wiht claims in PEMEX, between PEMEX-Gas and
Basic Petrochemical (PGPB), PEMEX-Refining (PREF) and PEMEX-Exploration and Production continued.
The comprehensive System for appropriations claims and prevention (SIARP) is operating at 100% in
PEP and 95% in PEMEX-Refining. Likewise, in PGBP, the SAP R/3 system is operating at 100%, and the
systems operate in accordance with the specific needs of each Subsidiary.
EMPLOYEE TRAINING ON ANTI-CORRUPTION PROCEDURES
AND POLICIES
The Code of Conduct shows the commitment to fighting and
preventing corruption resulting from improper practices
within the public administration, and allows encouraging
and conducting the ethical behavior of employees.
(http://www.pemex.com/index.cfm?action=content&sec
tionID=1&catID=9).
The aforementioned Code is mandatory for all the personnel
and is part of the induction material given to employees
when joining the company. So far, 23,173 employees
were trained by means of e-learning and, during 2008,
1,469 employees attended the Code of Conduct course.
Additionally, 9,000 non-union employees were trained on
the Code of Ethics of the Federal Government and value
batteries were administered to more than 13,000 workers. A
total of 97 events were developed to raise awareness on the
adoption of the Code of Conduct of PEMEX. PPQ stands out
for the number of participants and events: 5,232 employees
in 64 events.
PEMEX promotes the performance of the employees’
activities within an ethical, transparent and quality-based
framework. The above is evidenced by the “Recognition
Program for Outstanding Behavior and Projects Related
to Integrity and Transparency in Petróleos Mexicanos”,
which recognized a total of 206 employees at Work Centers
for their conduct or innovative proposals in such matter.
Likewise, the 10 best Human Resources departments were
identified through a service perception survey conducted
among employees.
Moreover, as a result of the electoral regulations, the
information related to their participation on electoral
processes was distributed, and more than 40,000
employees became aware of the different materials and
information issued by the Special Prosecutor’s Office for
Electoral Crimes.
The above-mentioned actions are intended to promote
respect for human rights within PEMEX’s business
activities in order to maintain a good reputation and protect
the investment stability. PEMEX continues working to
strengthen the relevant agreements.
ACTIONS TAKEN AGAINST CORRUPTION INCIDENTS
By 2008, the control over corruption risks, reflected
on the seven above-mentioned macroprocesses,
maintains its transversal scheme for all the participating
subsidiaries and its focal scheme in specific subjects.
The macroprocesses are based on the opinions gathered
in surveys conducted among customers, suppliers,
commercial chambers and the personnel, for the
creation of agreements and consensuses that will help
establish joint and coordinated actions, such as the interinstitutional actions taken to fight the illegal fuel market
in the country.
Additionally, the new Petróleos Mexicanos Act allows
a new overview as to transparency and accountability
matters, with the creation of the Accountability and
Transparency Committee as an entity of the Board of
Directors. The Committee’s guidelines are concentrated
in the disclosure of relevant information of Petróleos
Mexicanos and its Subsidiaries; the organization,
classification and management of reports; the accountability
mechanisms of Petróleos Mexicanos; follow-up on
information requests, and information reliability.
Financial or In-Kind Contributions to Parties or Related
Institutions
PEMEX does not make any financial or in-kind
contributions to political parties or similar institutions
within or outside the country. The monitoring of the
Work Centers where elections took place, during 2008,
revealed that the internal control actions, such as
transparency and accountability, have been satisfactorily
complied with.
Anti-monopoly Practices
As regards international matters, it responded to procedures
for alleged monopoly practices in the State of Florida, USA,
and it channeled the request of the Kingdom of Saudi Arabia
to present an Amicus brief, in a procedure similar to that
indicated in the State of Texas, USA. Both of them had
favorable results for PEMEX.
Advertising Campaigns
According to the Mexican Law, PEMEX is the only supplier
of oil fuel products, natural gas and basic petrochemical
products for industrial, commercial and domestic use in the
country. Thus, PEMEX does not develop intensive advertising
campaigns for its products.
DISSEMINATION OF THE CODE OF CONDUCT
2006-2008
Employees Trained
2008
121
358
408
367
215
485
545
809
219
359
2007
2006
1,269
960
1,563
856
312
1800
1600
1400
1200
1000
800
600
400
200
0
39
HO
PEP
PREF
PGPB
PPQ
GRI SO5
PEMEX has well-defined internal policies to address
the different subjects expressed by the Commission
on Transparency and Fight against Corruption in the
Accountability and Transparency Program.
PUBLIC POLICY
INSTRUMENTS APPLIED
Focused Transparency
In a participative execution of the industry areas, the internal control organs and, the consultation of the
Inter-subsidiary Commission, were identified, based on the needs of information of the citizens, several
items related to the allocation of public resources, processes and products, on which it was estimated
that it is necessary to achieve higher transparency and accountability to the society; such as:
1. Grants and donations (PEMEX)
2. PEMEX Franchising (PEMEX Refining)
3. Petrochemical products (PEMEX-Petrochemical)
4. Research and post grade in IMP (IMP)
The information on the selected subjects is available for the citizens at the Institutional portal www.pemex.com
An opinion survey was conducted as a feedback mechanism.
For 2009, plans are for working on the regulations and improvement of the information inherent to the
acquisitions published at PEMEX’s Portal.
Voting cap
03
The Institutional Code of Behavior describes the behavior of the personnel of Petróleos Mexicanos and its
Subsidiaries in compliance with the voting regulations, during 2008, the personnel was informed on the
different regulations on this regards and non employee was punished by the competent authorities.
In order to contribute to the reliability levels, the Work Centers – Industry Departments were created,
located in federal division during 2008, internal control actions to avoid the use of public resources with
voting purposes, as well as transparency and disclosure actions, using the Electronic means available in
the company.
Likewise, the e-learning course was introduced in Petróleos Mexicanos and its Subsidiaries, information
on Section 8 of the Federal Act of Management Responsibilities of Public Sectors and Section 407 of the
Federal Penal Code.
Citizens’ participation
The Mechanisms of Citizens’ Participation were introduced, directed by Petróleos Mexicanos, in the
figures of the Sector Commissions of the Actuations Macro-functions and Public Works, that currently
operate with the participation of the industry areas; as well as the different chambers and members.
In the institutional portal of PEMEX, the information related to the participation mechanisms available
such as the treatment for different subjects arising from the applications and questionnaires of the
Chambers and members is published.
Ethics and public responsibility
Several actions of disclosure and intensive sensitivity were implemented, which consists of phrases and
texts through PEMEX’s intranet, as well as the promotion of materials to foster and reinforce the legality culture.
The Inter-subsidiary Commission was informed on the existence of a Code of Behavior that regulates
the personnel’s behavior – one for Petróleos Mexicanos and its agencies, one for IMP, and one for each
Affiliated Company (PMI, Comesa and III Servicios)- mentioning that it maintains its disclosure.
Non-discrimination and gender equity
Petróleos Mexicanos, its Subsidiaries and affiliated companies count with institutional policies for the
selection, hiring and promotion of personnel, both trust personnel and personnel belonging to the labor
union, that inhibit discrimination.
The institution is making efforts, together with the Federal Government, in favor of the promotion and
respect of human Rights. Sensitivity, promotion, disclosure actions were taken to avoid discrimination and
gender equity in the company.
Improvement of web sites
The industry portals were improved, restructuring the following premises fixed by the authority:
• Information Architecture: Contents were organized to be simply and directly found and used by the user.
• Institutional Image: Relevance was provided to the main pages, such as the most important sections
and contents hierarchically.
• Access and usage: The technical conditions so any person may use, visit or access the company’s
portal through Internet were given, independently from their equipment, navigator or modem speed.
Likewise, there are alternatives equivalent for the visual content in the color formats and the style
sheets. On the other hand, a clear and simple language is privileged.
• Quality: Actions that allow the industry portals to operate efficiently, functionality and reliability
were taken, through a contents manager developed by PEMEX. At the same time, there is a Privacy
Statement and Data Management.
PEMEX 2008
40
• User’s Experience: There is a link, through a headline, to the opinion survey which centrally uses the
Internet System of the Republic Presidency, in order to know the citizens’ opinion regarding the site
visited and to measure the satisfaction level.
The areas of opportunity detected – in some cases -, by the Internet System Office of the Presidency,
that chairs this subject, are in the assistance process.
POLÍTICA PÚBLICA
INSTRUMENTOS APLICADOS
Education surplus
PEMEX participated in the education surplus, which was called “Superseding the Academic Level”. This
counts on the support of the company’s authorities and the Mexican Oil Labor Union.
A diagnosis was performed of the worker population who were interested in continuing with their basic
and higher level studies, sending the results to the National Institute of Education for Adults (INEA), which,
together with the Executive Offices of PEMEX, stated the actions to be taken centrally and regionally,
including the Subsidiaries, PMI, Comesa; III Servicios and the IMP.
Zero Observations Program
Petróleos Mexicanos, its Subsidiaries and PMI Comercio Internacional, have participated in this
program since 2007 for preventing recurrence of high and medium risk observations, with a preventive
perspective, through the specific treatment to the root causes that originate said observations. Several
analyses were carried out and solution actions were taken to avoid recurrence of observations
determined by the supervision agencies.
During 2008, the program was followed-up and the Public Function Department was informed from time
to time on the compliance with the actions proposed to mitigate the recurrence of the observations.
Expiration and regularization of trusts
Petróleos Mexicanos and PEMEX-Gas and Basic Petrochemicals participated in the expiry and
regularization of trusts program, which seeks to speed up the processes for the expiry and regularization
of public trusts, powers of attorney and analogue agreements which do not belong to the public sector
constituted in the APF, as well as those mixed trusts or private trusts that received or receive donations or
contributions from the Federal Government, and which have already achieved their objective.
The data related to said trusts identified in the Treasury Department module were updated and
registered. In the case of the Executive Offices, the one scheduled for 2008 was expired, and the actions
for the expiration of three other scheduled for 2009 are being taken,. As regards PEMEX-Gas and
Basic Petrochemical, for the five trust that they report, the execution of the expiry deed was formalized,
although the liquidation process still continues. The registration codes will be cancelled on the next date.
The trust still effective are: Federal District; La Laguna-Durango and Bajío Norte.
Institutional Internal Control Regulations
Compliance with the SOX Law in Petróleos Mexicanos. Simultaneously to this effort, the Corporate
Finance Office launched an institucional cut-off project, whose main purpose was to improve the
practices as regards internal controls. The date scheduled to conclude the activities related with the
compliance of the SOX Law are aligned with the SEC requirements.
Clear Purchases
Petróleos Mexicanos, its Subsidiaries, the IMP and affiliated companies provided the Public Function
Department information on the institutional purchases of goods and services provided during 2007, and
on the purchases of vehicles.
The information on the purchases made by Petróleos Mexicanos, its Subsidiaries and affiliated
companies is published on the institutional portals and the governmental portals Infomex and Compranet.
Actions to avoid corruption and indexes
analysis
The actions taken to avoid corruption and to improve the rates of the previous years were continued.
Promotion of physical culture and sport
The Executive Offices, each subsidiary, the IMP, PMI, Comercio Internacional, III Servicios and Compañía
Mexicana de Exploraciones participated in the actions described as the definition of Links and their
capacities.
Likewise, several improvements and innovations in the different selected processes were implemented.
On the other hand, PEMEX participated in the development
of the reform project of the Federal Criminal Code and
the Federal Code of Criminal Procedures, as well as in
the General Act of Civil Protection bill and diverse Official
Mexican Regulations, the most important of which are
those regarding Hazardous Waste Management Planning;
Listing and Criteria for the Identification of Special Handling
Waste; and Emergency. The last one establishes the
specifications for the use of dispersants in hydrocarbons
spills in the sea.
The Commission on Transparency and Fight against
Corruption evaluated PEMEX with 10 points over a
10 point basis, for the work developed during 2008,
acknowledging the collaboration of the institution in
the implementation of public policies designed by the
aforementioned commission.
41
Information corresponding to the XXVII Oil National Sports Games was provided and the execution of
a General Agreement of Collaboration with the Sports National Commission (CONADE) was promoted,
to join the efforts for the promotion, disclosure and development of physical culture and sports for the
benefit of the workers and/or eligible beneficiaries of PEMEX.
GRI PR9, SO8, EN28, HR9, HR4, PR2, PR4, PR7, PR8, 2.9, 4.16
CASES OF HARASSMENT, CORRUPTION AND OTHER ACTS
INFRINGING UPON HUMAN RIGHTS IN THE COMPANY
TOTAL AMOUNT OF LAWSUITS
In environmental matters, 319 new incidents were
registered; 109 related to inspections, 138 to
administrative procedures, and 72 to nullity actions.
During 2008, the National Commission of Human Rights
(CNDH, Spanish acronym) managed 35 complaints (nine
from the previous year and 26 from the reporting period;
26 were concluded and nine remain under process for
2009). Three claims and one complaint were tried before
the National Council to Prevent Discrimination.
The incurred fines total 73.9MM$, which will not
be payable until the validity is determined by the
corresponding courts.
Current affairs as of December 31, 2008 were: 194
inspection records, 466 administrative procedures and
635 nullity trials.
Of a total of 39 affairs related to Human Rights (CNDH
and National Council to Prevent Discrimination), 29 were
concluded finding no violations and 10 were left (nine
complaints and one claim) pending process for 2009.
IMPACTS ON INDIGENOUS RIGHTS AND LAWSUITS
There were no incidents related to collective or individual
indigenous rights violations.
Achieving transparent processes in the management
and operation of the company, eliminating corrupt
practices among the public sector officers and be timely
accountable to stakeholders, are the challenges that
PEMEX faces with a renewed Corporate Governance and
a strengthened oversight structure
03
CURRENT AFFAIRS, UNTIL DECEMBER 31, 2008
MATTER
380
Agrarian
177
Arbitration
42
NUMBER
Administrative
Environmental
PEMEX 2008
In 2008, there were no monetary or non-monetary penalties
imposed for non-compliance with the Law or regulations
relating to accounting fraud, violations of international
agreements or treaties, market communications, product
or labeling information regarding safety and health
regulations, or confidential treatment of information on
PEMEX customers.
1,295
4
Civil
607
Fiscal
229
Injunction
243
Labor
Mercantile
Criminal
Total
21,761
411
2,615
27,722
Debate Process on the Energy Reform
Diagnosis: PEMEX’s Situation
Petróleos Mexicanos and the Secretariat of Energy (SENER, Spanish acronym), performed a diagnosis on the situation of PEMEX, which was presented
on March 30, 2008. The document was disclosed in the portal of PEMEX and shows the challenges of the energy sector together with the actions that
should be taken to face them:
• Manage efficiently the decline of the main oil fields
• Substitute such decline with hydrocarbons from more complex basins
• Sustain the production platform in the medium term
• Reduce the participation of imports in the supply of oil fuel products
• Increase productivity and improve its operational performance
• Improve its supervision, transparency and accountability mechanisms without interfering with its operation
• Improve industrial safety and environmental protection standards
• Increase the proven reserves in order to sustain the production levels in the medium and long term
• Correct financial imbalances to ensure its viability
President’s Proposal
Stakeholders’ Visions at Debate
The debate on PEMEX’s situation and the Energy Reform proposal involved different political and social sectors in Mexico. The Reform generated multiple
exchanges, proposals and visions. The need for changes within the regulatory framework of the sector and the State’s property of and control over the
national energetic resources, together with the integration of the citizen participation in the debate of the process defined the discussion on the Reform.
Mexicans’ Participation
Mexicans knew and debated on the proposals from different approaches and perspectives; the areas of improvement and challenges of the company
were thoroughly analyzed in several forums.
I. New Organic Act of Petróleos Mexicanos
II. Reform to the Organic Act of the Federal Public Administration
III.Reform to the Act of the Energy Regulatory Commission
IV.Reform and addition to the Regulatory Act of the Constitutional Article 27, as regards the oil-producing sector
V. New Act of the Petroleum Commission
43
The President took as reference the diagnosis PEMEX’s Situation for the presentation of the Energy Reform on April 8, which contemplated five reforms
to the sector legislation:
Health and Safety
A single Management System: PEMEX-SSPA System
Training on SSPA
Audit and Control Initiatives
PEMEX’s Accident Rate Indexes
Occupational Health
Suppliers’ and Contractors’ Responsibility for Safety and Environmental Protection
Emergency Coordinating Center (CCAE)
PEMEX 2008
44
04
Health and Safety
Aspiration:
Continue with the company’s transformation toward a
preventive culture in the early stages of the projects,
where the workforce fully assumes its co-responsibility
and commitment to its own safety and the facilities’ security,
and performs a regulatory, auditing and advising role in the
safety, health and environmental protection areas.
Deputy Director of Operational Discipline, Safety, Health and
Environmental Protection
Corporate Operations Office
The year 2008 marks the consolidation in the coordinated
implementation of PEMEX-SSPA system, through the
criteria homologation and guidelines between the
practices and Subsidiaries. In this year, the safety, health
and environmental protection evolved in the Processes
Management System framework, ranging from a support
process to an additional company’s value chain. It was also
a year in which the efforts of the whole decade started to be
crystallized with the implementation of SSPA management
systems, obtaining the best result of safety in PEMEX’s
history, reaching international levels in key parameters.
The maturity progress of the processes of the area is also
reflected when achieving an internal verification unit of
Petróleos Mexicanos, which provided higher transparency
to its operations to ensure the compliance with the Official
Mexican Standards.
The consolidation of the Safety and Health practices must
also be according to a prevention philosophy during the early
planning stages of the projects opposed to the application
as a reactive and emerging measure. This thinking order is
applied at the present time to the Gulf Tertiary Oil Project
(PATG) before the challenge of redesigning a strategy where
safety and health are included in the sustainable model to
be implemented in ATG preventively, immersed in all the
project’s planning states.
For us, the Energy Reform represents new challenges, but
also positive opportunities regarding safety, health and
environmental protection. As a concrete case, I could quote
the creation of the Environmental Protection and Sustainable
Development Committee within the Board of Directors,
which shows the importance level and commitment of the
organization. In this level of maturity, the participation of the
Mexican Oil Labor Union is essential, through the coordinated
work to face the challenges that represent this new PEMEX’s
life stage, where everybody assumes the responsibilities
jointly. Additionally, with the Reform, there will be more
participation of the contractors, and thus, we are working
in the improvement of control mechanisms, reinforcing the
requirements regarding safety, health and environment from
the bid basis, so that all the chain links are equally reinforced.
When we talk about SSPA, we are talking about two PEMEX’s
large heritages that are its people and its facilities. That
is why our SSPA vision in PEMEX goes further than only a
management model, making the workers participants of
their personal responsibility in the care and conservation
of the facilities, which doubtlessly will contribute with
the company’s sustainable and responsible growing.
Unfortunately, accidents occur in this industry, which
does not mean we should get used to them. Through the
consolidation of our practices of the PEMEX-SSPA System, the
perfection of our process and the continuous improvement
will help decreasing the occurrence of negative events in
a near future time, with the participation of the company
and workers allied for the same purpose: the people’s and
facilities safety and workers’ health.
Facts
Challenges
•Revalorization of the SSPA process as part of the value chain, internalization of a
security and health culture within the company
•Beginning of the consolidation of the PEMEX-SSPA System
•Best safety results in the past 70 years
•Less incapacitating accidents, lower frequency index and lowest number of
contractors’ incapacitating accidents in the past 10 years
•Reduction of industrial accidents and in consequence decrease of its economic impact
by 94% as compared to 2007
• Continue improving the indicators on accidents, with a special emphasis in the UPMP
area in PEP
•Design a strategy where safety and health are an integral part of the sustainable model
to be implemented in ATG
•Consolidate the level 3 of the PEMEX-SSPA System
• Align the PEMEX-SSPA System to the Energy Reform. It is necessary to visualize,
incorporate and instrument the efficient use and saving of energy on the System
• Start the “PASST” program
GRI Management approach,
LA6, LA10
A single Management System:
PEMEX-SSPA System
At Petróleos Mexicanos, safety, health and environmental
protection (SSPA, Spanish acronym) are fundamental
factors for its development.
Main Results achieved in 2008
Health and Safety
Training on SSPA
Occupational Health
PEMEX, as any other oil-producing company, performs
its activities in a dangerous industry. In recent years, the
implementation of international standards in SSPA maters
has been carried out in order to optimize its performance,
thus promoting the protection of the environment and the
reduction of accidents
04
Petróleos Mexicanos encourages a sustainability
development culture, promotes security for operations,
its employees health and a harmonic relationship with
the environment. Áccordingly, in 2008 and for the third
consecutive year, PEMEX continued the instrumentation
of the System for the Integral Safety, Health and
Environmental Protection Management, PEMEX-SSPA.
• Conclusion of the consolidation phase of
implementation of the 12 SSPA Best Practices and the
Administration of Security Processes
•The Occupational Health Subsystem (SAST, Spanish
acronym) and the Environmental Administration
Subsystem (SAA, Spanish acronym) were implemented
•Transition lines were established for PEMEX-SSPA
applicable to the SSPA function, Structured Organization,
based on the results of the monitoring of the execution
of specific and general plans and programs at the Work
Centers, and consulting reports
•The operation of the Structured Organization was
improved as a result of the establishment of the subleadership teams in Strategic Leadership, Operational
Reliability and ASP, achieving goals, initiatives and
strategies applicable at every level in the company
•Training and diffusion on the PEMEX-SSPA System to
every implementation and sub-implementation team to
support the system’s strengthening
PEMEX complies with the safety and occupational health
regulations applicable to the oil-producing sector, as well
as with those established in the Federal Regulations on
Occupational Safety, Health and Environment and in the
Collective Bargaining Agreement in force for every nonunion and union employee.
SSPA
MACROPROCESS
SSPA Planning
VISIBLE AND PROVEN COMMITMENT 1
SSPA POLICY 2
AGGRESSIVE GOALS AND OBJECTIVES 3
STRUCTURED ORGANIZATION 4
CHAIN OF COMMAND RESPONSIBILITIES 5
SSPA ROLE 6
EFFECTIVE COMMUNICATIONS 7
ONGOING TRAINING PROGRAMS 8
PERMANENT MOTIVATION 9
HIGH PERFORMANCE STANDARDS 10
EFFECTIVE AUDITS 11
INCIDENT REPORTS AND ANALYSES 12
SSPA Risks
Management
Measurement
and Evaluation
12 IBP
SSPA INTERNATIONAL
BEST PRACTICES
PEMEX 2008
46
SASP: Processes’ Safety Management Subsystem
SAST: Occupational Health Management Subsystem
SAA: Environmental Management Subsystem
Analysis, Compliance
and Improvement
SASP
SAA
SAST
Training on SSPA
Training is a key, systematic, planned and permanent
activity of one of the 12 Best Practices of the PEMEX-SSPA
System.
During 2008, training programs on SSPA matters
were implemented in every Work Center through the
development and empowerment of internal SSPA trainers
in PEMEX.
With this, PEMEX intends to align the employees’
knowledge and criteria to consolidate a preventive culture
in the organization.
3,220 employees constitute the Mixed Health and Safety
Commission, approximately 2% of the total labor force.
Diffusion and Training of the PEMEX and Subsidiaries
Safety and Health Regulation
50,000
12,006 650 copies distributed
employees trained in 115 Work Centers
course given by the
Mexican Oil Institute
Verification of the Contractors’ Training Programs
SSPA TRAINING:
Exceeded 2008 expected compliance
Courses taught:
SSPA1, SSPA2, IMAC
2,755 courses
Participants
56,094 employees
Furthermore, PEMEX has the Induction and Training
Programs in place on Selected Safety, Health and
Environmental Protection, subjects, which are part of
PEMEX’s Institutional Training Program. This program is
integrated from the Work Centers and lines of business of
the Subsidiaries.
An extensive training on specialized PEMEX-SSPA subjects
has been provided since 2005. Throughout 2008, this
training was executed by internal SSPA instructors at
the Work Centers. During the same period, the Corporate
Operations Office coordinated training on critical SSPA
and PEMEX Health and Safety Regulations subjects for all
manual personnel at the Work Centers.
Collegiate Mixed Health and Safety Groups
The Collegiate Mixed Health and Safety Groups are equally
structured between union and company at three levels:
The SSPA Program that contractors must present as part
of the requirements of the bidding bases for priority
projects – executed and managed by the Corporate
Engineering and Project Development Office (DCIDP,
Spanish acronym)– must have a training program for
the employees. The program is required to consider
not only the type of jobs to perform based on the
work scope, but also the category or specialization of
the employees that will be trained (helpers, manual
personnel, technical personnel, supervisors, etc.), as
well as the training periodicity based on the contract’s
term and personnel turnover.
The training verification process is planned through the
use of a personal SSPA card, on which each employee’s
training courses are registered and dated. One of
the functions of the Quality, Industrial Security and
Environmental Protection Management is to assess,
by means of audits, the performance regarding SSPA in
activities supervised by the Residences of Work during
the construction works carried out by contractors
in charge of the DCIDP. The evaluation considers the
verification of compliance with the training programs
that the contractor has proposed in accordance with the
bidding bases.
47
• Direction level, 32 employees serve on a National
Mixed Health and Safety Commission (CNMSH, Spanish
acronym)
• Executive level, there are five Coordinating Mixed
Groups for the Local Mixed Health and Safety
Commission (CLMSH, Spanish acronym), one for
each Subsidiary and Executive Offices. There are 76
employees participating at this level
•Operational level, there are 427 CLMSH, one for each
Work Center, with 3,222 participating employees in
addition to 96 commissioned employees. Clause 65 of
the 2007-2009 Collective Bargaining Agreement
Health and Safety
Training on SSPA
Occupational Health
GRI 4.9, LA7
04
During 2008, the insurance company Seguros INBURSA,
S.A. Grupo Financiero INBURSA, performed inspection
visits on the four Subsidiaries of Petróleos Mexicanos, 33
offshore facilities, 23 in-land facilities and 12 pipelines
located in the South, Center and North zones of the country,
in order to verify the compliance with the previous year
recommendations. During 2008, 398 recommendations
were revised and 203 were certified as released; this
represents a progress of 51% of the 1,092 recommendations
in progress.
Likewise, preliminary risk inspection visits were performed
to provide technical support and advice on compliance with
recommendations. The main completed activities are the
following:
• Nine audits of the Security Process Management
System in PGPB’s facilities
• 13 audits of the SSPA System in PEMEX-Refining’s
facilities
• One technical support visit at the CPQ Pajaritos’s
facilities for the inspection of the heavy chlorine tanks
at Planta Clorados III
• One visit to reinforce the Security Process Management
System at PEP’s facilities (TMDB Dos Bocas
Reforzamiento)
• 15 follow-up visits regarding compliance with SSPA,
reinsurance, accident prevention, security process
management sub-system, Mechanical Integrity
and Quality Assurance (IMAC, Spanish acronym)
recommendations in Work Centers of the PEP, PGPB,
PREF and PPQ
• Seven verification and follow-up visits regarding
compliance with the SSPA audit programs regarding
industrial safety and environmental protection of
Subsidiaries
Effective Audits and Safe Act Index
Effective audits are conducted in every facility as part
of PEMEX-SSPA System’s best practices. These are a
preventive tool and are performed to support decisionmaking and to set up measures that contribute to
develop a culture for prevention of accidents.
The program of effective chain of command and
referential audits continued in 2008. A total of 579,261
effective audits were made in PEMEX and its Subsidiaries.
Owing to the preventive nature of this practice, in
the case of the facilities rated as “preventive” or
“unacceptable” during the effective audit, action plans
are designed to eliminate the acts identified as unsafe
and avoid the recurrence and incident potential.
The following Safe Acts Indexes are a result of the
effective audits:
Effective Audits Completed
2008 Safe Acts Index in PEMEX (%)
PEMEX 2007 - 2008 (Number)
Frequency Index
Unacceptable
Preventive
Safe
350,000
< 95
300,000
95 - 98
3
250,000
2
> 98
200,000
2.68
1.39
1.19
1.00
1.17
1.09
1.50
1.06
0.67
0.59
0.47
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
PPQ 97.29
PGPB 98.14
PREF 95.33
PEP 93.03
0
1
HO 89.00
50,000
1,890
2008 168,528
318,165
59,481
31,197
150,000
100,000
1,012
138,214
2007 248,918
59,481
NA
PEMEX 2008
48
Head Office
PEP
PREF
PGPB
PPQ
PEMEX’s Accident Indexes
The institutional effort to change the Organizational
culture through the implementation of the PEMEX-SSPA
System has developed improvements in the company’s
accident indexes.
Frequency Index
At 2008 closing, the Frequency Index was 0.47 accidents
per million man-hours worked with risk exposure,
reaching the expected goal of 0.48. This was 20% less
than the previous year, which represented the lowest
annual level in the company’s history.
It is noteworthy that of the different Subsidiaries,
PEMEX-Exploration and Production reduced its Frequency
Index by 39%, as compared to the index for 2007, thus
exceeding the expected goal of 0.90.
PEMEX Outsourcing Index
The implementation of PEMEX-SSPA has made it possible
to include the contractors in programs that contribute to
continuously improve their performance as to accident
occurrence. The 2008 Outsourcing Frequency Index was
of 0.75; that is 24% less than the previous year.
It is a priority for PEMEX that every contractor complies
with the health and safety criteria established by the
Secretariat of Labor and Social Welfare and criteria
practiced by the company. Therefore, for the General
Conditions for Purchase and Engagement, as well as for
the evaluation and selection of suppliers, all valid health
and safety regulations and those internally established
by PEMEX must be complied with.
Economic Impact Generated by Accidents
Severity Index
As regards the Severity Index, it shows a positive
tendency for 2008 in comparison to the previous year.
There was a reduction from 35 to 27 lost days per million
man-hours worked, for an improvement of 23%.
PEMEX and the SDOSSPA joined efforts during 2008 in
order to monitor the recommendations of the
International Reinsurance and to reinforce the SSPA
Management System so as to contribute to reduce the
industrial accidents and the related economic impact.
Fatality Index
The 2008 Fatality Index is lower than that registered during
2007, which was mostly affected by the accident suffered in
the Usumacinta Platform. It decreased from 4.84 to 2.11.
Economic Impact created by Accidents
Fatality Index
200
8
150
6
FREQUENCY OUTSOURCING INDEX
3
Millions of U.S. Dollars (MMUS$)
Data at June 31, 2008
450
(94% Less)
PEMEX Severity Index
350
2
398.81
23.72
2007
2008
0
59.08
2.69
1.88
1.78
2.42
1.4
1.1
1.14
1.3
0.84
0.99
0.75
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
7.11
3.12
4.11
1.56
2.09
1.82
2.23
2.72
1.62
4.84
2.11
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
197
127
96
95
100
100
104
72
33
35
27
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
0
50
2006
150
1
51.65
2
2005
50
81.36
4
2004
250
100
GRI SO1, LA7, LA10, LA8
Occupational Health
Regional Emergency Response
and Management Groups
Health and Safety
Training on SSPA
Occupational Health
Regional Emergency Response and Management Groups
(GRAME, Spanish acronym) are integrated by the Work
Centers located within a region of PEMEX. Their objective
is to coordinate major emergency services to exceed
the emergency response capacities in the affected
Work Center.
04
The Deputy Office of Operational Discipline, Safety,
Health and Environmental Protections (SDOSSPA,
Spanish acronym) has promoted the creation of GRAMEs
in localities where the presence of PEMEX facilities
requires them.
In order to organize the occupational health development
in Petróleos Mexicanos, a coordinated and harmonic
development mechanism has been implemented for the
strategic, tactical and operational activities, essentially
those requiring the involvement of more than one
department. On February 2008, the Central Coordinating
Group on Occupational Health began to operate. This
group was created as a work team of the Intersubsidiaries Commission of SSPA (CAISSPA, Spanish
acronym) and is composed by representatives of the
SDOSSPA in charge of occupational health within PEMEX.
PEMEX needs 19 GRAMEs in order to cover the national
territory and the total amount of oil-industry facilities.
During 2008, the GRAMEs Peninsular and Veracruz North
were formalized, additionally to those of South and
Veracruz South.
For 2009, the following groups will be officially
constituted: Veracruz Center, Bajío, Northeast, Sonora,
Isthmus, High Plateau, Marine Northeast and Marine
Southwest. The rest of the GRAMEs are scheduled
for 2010.
PEMEX has 19 regional organizations to serve major emergencies when
emergencies surpass the affected Work Centers’ capacity for response
(GRAMEs).
• California
• Sonora
• Cortes Sea
• North
• Northeast
• Occident
• Saz
• Tamaulipas South
• Bajío
• Northern Veracruz
• Veracruz Center
• Veracruz South
• High Plateau
• Puebla Tlaxcala
• Isthmus
• Southwest Marina
• Northeast Marina
• South
• Peninsular
PEMEX Achieved a Historical Accident Rate Performance
Over the last few years, PEMEX has substantially improved its Accident Rate Indicators. The 70th anniversary of the oil industry, 2008, has been the best
year in company’s history regarding employee health and safety. This was accomplished because the company directors’ established a set of activities to
systematize and intensify the tasks and the best practices that allow the consolidation of the SSPA culture.
•The lowest incapacitating accidents rate in 70 years (183 accidents)
•The best Frequency Index in 70 years (0.47 accidents per million man-hours worked)
•The best Severity Index in 70 years (27 lost days per million man-hours worked)
•The lowest outsourcing incapacitating accidents rate in the last 10 years (165 accidents)
•The best Outsourcing Frequency Index in the last 10 years (0.75)
PEMEX 2008
50
The implementation of the SSPA Management Systems over the last decade has been a relevant factor for achieving this accident rate performance
in the company. The 2008 accidents frequency decreased by 82%, and the severity decreased by 86%, from 2.68 to 0.47 injured workers per million
man-hours worked, and from 197 to 27 lost days per million man-hours worked, respectively.
Goals and objectives to reduce accident rates were established during 2008. The relevant results were:
• 45.69% of PEMEX’s Lines of Business achieved the GOAL of no accidents registered throughout the year
• 64.9% of PEMEX’s Lines of Business achieved the expected objective of reducing the incidence of accidents
• 86.5% of PEMEX’s Lines of Business did not register any fatal accident throughout the year (fatal accidents in 4 out of 30 Lines of Business)
The purpose is to bring PEMEX up to the best international performance in such matter. Therefore, PEMEX will continue with its policy regarding SSPA
matters, by adopting new technologies, training its employees and enhancing both the emergency response and timely reaction systems.
2008 Main Actions:
Health Assistance and Medical Prevention
• 108,480 medical exams, including periodic medical
exams and new and rehired personnel. Additionally,
based on a consultation to the Labor Relations area, it
was determined that the Deputy Office of Health
Services, through the Expert Medicine services, would
be in charge of the recognition of occupational
diseases, in contrast to previous years when Human
Resources performed this activity. This update will
allow optimizing the identification of occupational
diseases together with its consequential advice on
preventive actions at Work Centers
Through medical prevention action, it has been possible
to maintain at a zero rate the cases of diseases
avoidable through vaccination of the universal scheme,
for children under five. By means of the expanded
newborn screening, 45 cases of congenital metabolic
diseases were timely detected. Additionally, 152,500
doses of adult and infant flu vaccines were applied, with
special emphasis on the employees and beneficiaries
with risk factor.
• In the Occupational Health Regional Unit of Ciudad del
Carmen, Campeche, the training on Offshore Safety and
Survival provided by physicians from the occupational
preventive medical services in the in-land and offshore
(platforms) facilities stands out
• The Industrial Toxicological Lab continued to monitor
workers of the Petrochemicals Complexes. The
laboratory has studied 376 employees from PEMEX-Gas
and Basic Petrochemicals (750 samples analyzed) and
99 employees from PEMEX-Refining (242 samples
analyzed)
Petróleos Mexicanos diffused, via its internal
communication media, 400,000 graphic and electronic
messages of health’s promotion and conservation, as a
key for success regarding personal, familiar, professional,
labor and physical development.
The 14 Health Labs, operating at the Medical Hospital
Units, have detected 38,523 inappropriate lifestyle risk
factors among beneficiaries. A control process initiated
through training, education and promotion on healthy
nourishing, physical activities and reductions in the
consumption of alcohol and tobacco.
Thirteen of these Units obtained the certification on
“Tobacco Free Facilities” and informed 89,103
beneficiaries about tobacco damages, of which 1,981
people received support at the clinics with the aim to quit
smoking. Additionally, two national campaigns were
launched for alcohol consumption prevention.
Assistance and
Preventive Services
2006
2007
2008
5,125,937
5,070,831
4,860,577
Patients signed out of hospitals
70,739
71,918
71,680
Surgeries
33,796
35,322
35,507
Medical Visits
215
431
90
298
62
Head Office
PEP
PGPB
PREF
PPQ
Births
Laboratory Studies
Imaging Studies
Pathologic Anatomy
Early Detection Exams of
Transferable and Chronic
Diseases
4,573
4,519
4,392
4,309,232
4,258,208
4,210,405
632,459
554,857
524,109
90,701
95,810
88,071
850,807
836,393
848,559
Active Risk-related Labor Lawsuits
TOTAL: 1096 cases
December 2008
51
As regards assistance and preventive services provided
by PEMEX to its employees and their families, the
following stand out:
GRI LA7, LA9, HR2
Suppliers’ and Contractors’
Responsibility for Safety
and Environmental
Protection
Absentee Rates by Injuries and Diseases
Even though there are no specific indicators established
for this function, there is information concerning
absentee rates for injuries and diseases, occupational
risk lawsuits and employees’ reports on permanent
incapacity, which leads to identify and work on this area
of opportunity for the company.
NUMBER OF DEATHS CAUSED BY LABOR-RELATED ACCIDENTS
PER ENTITY
(fatalities) 2003-2008
Health and Safety
Training on SSPA
Occupational Health
Entity
2003
2004
2005
2006
2007
2008
PEP
3
4
5
0
16
1
PREF
2
2
1
4
1
1
PPQ
1
1
1
0
1
3
PGPB
0
1
3
0
0
3
Head Office
0
0
0
0
0
0
PEMEX Total
6
8
10
4
18
8
Lost Days per Accident by Entity
(temporary disabilities) 2003-2008
Entity
PEP
2003
2004
11,854
2005
14 10,561
2008
7,146
5,627
7,998
7,635
8,473
3,513
1,492
1,822
PPQ
5,181
4,769
2,698
1,354
850
947
PGPB
4,794
2,285
1,069
254
54
790
Head Office
1,967
2,852
1,464
622
91
226
31,794 31,590 24,270 11,387
9,633
9,412
PEMEX Total
Absenteeism by Injury and Disease
Number of Days
PEMEX and Subsidiary Entities
Source: Deputy Head Office of Health Services
1,200,000
1,100,000
1,000,000
2008
2007
2006
2005
2004
900,000
2003
52
2007
5,644
PREF
04
PEMEX 2008
2006
Contractors must provide their services in compliance
with a set of federal, state and municipal regulations
concerning safety, occupational health and
environmental protection matters, as part of the
sustainable development model that is being
instrumented in the PATG. Similarly, contractors must
obey PEMEX’s Code of Behavior and contractual safety
regulations.
The PATG’s Sustainable Development Annex establishes
that every contractor or supplier must demonstrate that it
is an environmental responsible company by means of
international certifications, such as ISO 14000, or
environmental management systems consistent with
said ISO; and national certifications, such as Clean
Industry from the SEMARNAT (PROFEPA), and at least,
have one successful case from the latter. Additionally,
these organizations must demonstrate that they are a
social responsible company by means of national
certifications, such as Safe Industry from the STPS, or
Social Responsible Company from the CEMEFI, and have,
at least, one successful case from the latter.
Finally, the contractor or supplier may engage an
environmental and social consultant agency for design of
a Community and Environmental Supporting Program
based on the document entitled “Diagnosis on the
Environmental and Socioeconomic Context for the
Elaboration of a PATG Sustainable Development Strategy”.
EMERGENCY COORDINATING
CENTER (CCAE)
CCAE (Spanish acronym) is operated by the Emergency
Management Office. It is an interdisciplinary work team
that operates as the official means for receiving
information on incidents, accidents and emergencies
within the institution. Any citizen can report incidents
related to the oil industry by dialing 066. This is possible
thanks to the strategic alliance with the National Public
Security System, which covers approximately 94% of the
country.
During 2008, the CCAE attended for the first time the
National Award for Excellence in Contact Centers which
took place during the 12th International Congress of IP &
Contact Forum. More than 30 public and private
companies presented a total of 162 participating cases.
The Corporate Operations Office, through the CCAE, was
nominated for:
• Best social responsibility contribution
• Best technological contribution
In both cases, the CCAE received the silver medal from the
Mexican Institute of Teleservices, which gives awards in
seven different categories to the best contact centers at a
national level since the last three years.
IMP’s TESTIMONIAL ON THE PROJECT “DIFFUSION, INTERPRETATION AND ANALYSIS OF HEALTH AND SAFETY
REGULATIONS IN PETRÓLEOS MEXICANOS AND ITS SUBSIDIARIES”
The Corporate Operations Office, through the Assessment and Inspection Management of the SDOSSPA, coordinated the design and implementation of the diffusion program on health and safety regulations in order to ensure that every PEMEX workers knows and applies the Health and Safety
Regulations of Petróleos Mexicanos and its Subsidiaries. The DCO entrusted this task to the Oil Mexican Institute, since it believes its experience and
infrastructure would ensure the fulfillment of the main objective of this project.
The diffusion events of the Health and Safety Regulations are carried out by facilitators previously trained by means of workshops in each of the
IMP regions.
The second stage of this program began during 2008. A total of 12,006 employees from 115 Work Centers participated in the execution of 650 events,
which represented an additional effort to respond to the events in those Work Centers where the IMP does not have any representation. The joint work
between DCO, Subsidiaries and IMP, as well as the empathy between the participants and the trainers, stand out. The enthusiastic participation and the
interest shown by authorities and workers contributed, during 2008, to carry out more conferences among the Work Centers for a broader audience for
the purpose of providing everyone with the Regulations for immediate consultation.
Applicable corrective actions were defined for every PGPB’s Work Center as a consequence of the root cause analysis. The main actions are:
•To identify every facility with similar conditions
•To perform the ARPs for every case detected in order to manage risks properly
•To develop a document to establish every needed operational activity for the delivery of facilities to maintenance and safe conditions return
•To execute the ongoing Operational Discipline of the procedure, including the checklist/protocol for the non-rotuine operational activities
A fireless explosion occurred during the shutdown of the EHCA 1 and 2 hydrocarbons and sour condensate sweetening plants for the purpose of
integrating them to the new vent head. The explosion causes death to the engineer and his assistant working in the plant at the time, as well as two
other employees injured.
53
EXPLOSION OF THE FA-800 BLOWDOWN TANK IN THE HYDROCARBONS AND SOUR CONDENSATE SWEETENING
PLANT AT CPG CACTUS (NOV 17, 2008)
GRI SO1
Health and Safety
Training on SSPA
Occupational Health
04
COLLISION BETWEEN THE USUMACINTA AND THE KAB 101 PLATFORMS
On October 23, 2007, a collision occurred between the Usumacinta and the KAB 101 platforms, attributed to the cold front number 4, which appeared
with more severe conditions than predicted. Winds of 120 km/hr and six to eight meter high waves caused horizontal and vertical movements on
the Usumacinta platform, which, in turn, caused that its cantilever hit the Christmas tree of the Kab 121 well (one of the three wells in the KAB 101
platform), causing oil and gas leaks.
The emergency plan went into effect upon the occurrence of an uncontrolled gas leak in the Kab 121 well, and two lifeboats were used to evacuate the
platform, without any inconvenience.
The lifeboats sailed amidst adverse weather conditions, which caused anxiety among the crew members. These conditions caused the hatches opening
of both boats with a consequent loss of water tightness and 20 people dead out of 73 shipwrecked employees (six were PEMEX workers and 14 were
contractors’ workers). Additionally, two sailors from the Morrison Tide rescue boat died.
The works related to the well control finished on December 15, 2007, when the Kab 121 well was totally sealed.
The environmental impact caused by the hydrocarbons leak was controlled thanks to the type of product (light crude and gas) and to the
implementation of timely control and recovery actions, offshore and inshore. Additionally, PEMEX contributed with 16MM$ to the local fishing industry.
In order to know the root causes of this accident and identify the necessary corrective actions to avoid recurrence, three independent groups were
formed, namely:
1. Internal Research Group of Petróleos Mexicanos, coordinated by the DCO and supported by the Battelle Memorial Institute, which was in charge
of the Root Cause Analysis
2.Inter-governmental Coordination Entity responsible for the research. It is constituted by SENER, STPS, SEMARNAT/PROFEPA, PGR, SEMAR, SCT
and SFP.
3.Independent Special Commission, comprised by eight expert citizens, some of which are linked to national research institutes, and chaired by Mario
Molina, PhD.
The results on these researches, concerning the main causes of the accident, agreed on the following:
PEMEX 2008
54
• Severe atypical weather conditions (wind, swell and currents irregular for that period of the year)
• Deficient interpretation of the weather forecast
• Interaction between the seafloor and the mat structure of the Usumacinta platform
• Malfunctioning of the storm valve in Kab 121 well
• Deficient personnel training on emergency response
• Errors in the lifeboats operation
Currently, the two platforms remain in their place under post-accident conditions, but without any risk, awaiting legal and insurance proceedings to be
finished in order to proceed to the platform’s dismantling, along with the recovery of the storm valve of the Kab 121 well for its analysis and to prepare
the other two wells for resuming productive operations.
Furthermore, indemnities to relatives of the deceased employees were superior to those established by the Law. Petróleos Mexicanos is implementing
the proper actions to cover the recommendations given by the Batelle Institute, the Governmental Coordination Entity and the Independent Special
Commission.
The reports of the root cause analysis, prepared by the Battelle Memorial Institute and the Independent Special Commission, were uploaded for public
consultation on the website www.pemex.com
Cooperation and Coordination Agreement in matters related to Civil Protection entered into by and between PEMEX
and State Governments
The following agreements are a result of the State Governor’s demand for a single Petróleos Mexicanos Civil Protection Coordinator in matters
related to emergency response:
• PEMEX agreed to prepare and deliver an Atlas of Petróleos Mexicanos’ Strategic Facilities at the end of 2007, during the National Governors
Conference (CONAGO, acronym in Spanish) held in Puerto Vallarta, Jalisco in May 2007.
• The PEMEX Director General and Mario Marín Torres, the CONAGO’s Coordinator of Civil Protection Commission (CPC) agreed on October 15, 2007, to take
actions to resolve Civil Protection problems regarding the location and operation of PEMEX’s facilities, through the creation of Collaboration and Coordination
Agreements.
• PEMEX and CPC-CONAGO held six meetings to establish the terms of the Collaboration and Coordination Agreement regarding Civil Protection and the
Confidentiality and Reserve Agreement were approved on July 29, 2008, regarding delivery of the Petróleos Mexicanos Strategic Facilities Atlas to the federal
and municipal entities.
The Petróleos Mexicanos Strategic Facilities Atlas
The Strategic Facilities Atlas is an information tool that is used
to present updated information on PEMEX and its Subsidiary
Entities’ infrastructure with the purpose of helping Civil
Protection, Public Security and Social / Urban Development
authorities in preparing emergency plans and development /
urban programs
Civil Protection Collaboration and Coordination
Agreement
Confidentiality agreement for the Atlas delivery
PEMEX is committed to share its Atlas of Strategic Facilities.
Establish the collaboration bases for civil protection matters in
order to:
Assure coordination (including prevention, help and recovery)
between the Work Centers and the Civil Protection authorities in
the case of emergencies or disasters.
The purpose of this Agreement is for receiver States and
Municipalities to oblige themselves to treat confidentially the
pertaining information that has been given by PEMEX (via
internet and with passwords).
Address emergencies and natural or human disasters originated
by the state’s oil-industry activities or outsourcers.
Determine PEMEX and the local and state civil protection
authorities’ sphere of competencies.
Name a single PEMEX representative for each state
LEGAL FRAMEWORK
Civil Protection Law • Organic Law of PEMEX • SINAPROC’s Organizational Handbook • The DCO’s Organic Structure
Climate Change
National Commitment in Response to Climate Change
Monitoring the Evolution of GHG
Energy Efficiency
GHG Reduction with CDM Projects
Methane to Markets
PEMEX 2008
56
05
Climate Change
Aspiration:
Consolidate a broad variety of direct and indirect mitigation
alternatives that will allow reducing the CO2 footprint
of our energy offer in an effective-cost way through the
internalization of a carbon cost.
José Manuel Carrera Panizzo
We believe that it is necessary to also take actions to
reduce the emissions of our supply chain and in the final
consumption of our fuels, and therefore, in 2009, we will
start activities for this purpose.
Since 1999, PEMEX has been in the vanguard of the
worldwide oil sector when publicly recognized the climate
change phenomenon, the relevant role of the fossil fuel
consumption in said phenomenon and proposing the
need to act. Today, the conviction of Petróleos Mexicanos
is that the climate change is the main development
challenge that the world has to face.
Complementarily, it is necessary to create a new
projects assessment modality, including the carbon cost
generated by our operations. This will allow us assigning
in an effective-cost way resources to the best reduction
alternatives.
Director of Risk Management
Corporate Finance Office
As part of the public mandate PEMEX has to satisfy the
fuel demand of the country, we are making efforts so
that our energy offer is less intensive in greenhouse
effect gases. Thus, during 2008, PEMEX continued
with the implementation of several projects to reduce
the emissions, among which the energy efficiency,
cogeneration, reduction of methane emissions, improved
recovery with CO2 and the reduction of gas burning
projects development may be highlighted. Some of these
projects are being managed under the scheme of Clean
Development Mechanism (MDL, Spanish acronym). With
the implementation of said projects, important emissions
reduction of GHG to the atmosphere will be achieved.
During 2008, an increase in the GHG emissions of PEMEX
was recorded due, mainly, to the burning in the sea
of natural gas with high nitrogen content. PEMEX has
the ambitious investment program that incorporates
initiatives oriented to reduce significantly the emissions
arising from said burning.
Aware of the role to be played by the consumers in the
reduction effort of the transportation and residential
sectors, PEMEX has worked to promote more climate
awareness, providing the public in general on its internet
page, tools such as the residential ecological fingerprint
calculator.
PEMEX identifies in the current economic environment
a good opportunity to face the climate change, exploring
initiatives to optimize the energy consumption and
promoting a more responsible usage among the
customers.
The correct mitigation and control actions articulation
identified by PEMEX will lead to a positive environment
impact.
Facts
Challenges
•PEMEX generates almost 8.2% of the GHG emissions in the country
•The CO2 emissions increased by 20% as compared to 2007 due to the increase of gas
burning with high nitrogen content in Cantarell
• 64% of the GHG come from combustion and 31% from burners
•The energy consumed was produced mainly from natural gas (80.7%), fuel oil (11.9%)
and diesel (2.4%)
• With the operation of cogeneration plants, PEMEX estimates yearly reductions of
940 Mt of CO2e
•Management of several CDM projects to be executed with a yearly reduction of
approximately 3.3 MMt of CO2e
•PEMEX chairs the Committee of Climate Change and Energy Efficiency of ARPEL
and co-chairs the Gas and Oil Subcommittee of the Methane to Markets Initiative, in
conjunction with Russia and Canada
• Implement initiatives, according to the new laws of environmental matters for the
mitigation of greenhouse gasses producing the climate change
•Optimize the use of energy in productive processes in the company
•Reduce the CO2 emissions in the burning of sour gas with high nitrogen content in
oil fields
•Continue working on the reduction of GHG and the implementation of policies and
mitigation strategies
•Continue marketing Certificates of Emissions Reduction for CDM projects and Methane
to Markets
GRI EC2, management approach
EN, EN16, EN17, EN19, EN3, EN4
Climate Change
Energy Efficiency
Methane to Markets
05
National Commitment in
Response to Climate Change
Monitoring the Evolution
of GHG
In addition to the efforts of governments and international
initiatives for the mitigation of climate change effects,
2008 was an important year concerning the national
legislation on environmental matters. During this year,
two important presidential decrees were published in
the Federal Official Gazette as a result of the Energy
Reform passed by the Congress in November: the “Act of
Use of Renewable Energy and Financing of the Energy
Transition” “Sustainable Use of Energy Act”. A brief
description is presented below:
CO2 emissions increased by 20% as compared to 2007,
due to the burning of sour gas with high nitrogen content
in the oil field of Cantarell, in the Gulf of Mexico.
During the work concerning activities for climate change
mitigation, processes of investment planning have been
generated to internalize the carbon costs in business
decisions-making, as well as the design of the legal and
budgetary framework allowing PEMEX to participate in
voluntary carbon markets. Actions have been undertaken
according to the international commitments acquired by
the country on this matter, such as the Kyoto Protocol
and the participation in CDM projects and other related
associations. Needless to say, during 2008, following
the National Climate Change Strategy (ENACC, Spanish
acronym), PEMEX participated with the Secretariat of
Energy, the Mexican Oil Institute, the CFE and the LyFC
in the preparation of the chapter related to the Energy
Sector of the Special Program of Climate Change (PECC,
acronym in Spanish). This chapter will be made public by the
President, Felipe Calderón, during the first half of 2009.
The strategy of GHG emission mitigation is focused on
projects of energy efficiency, cogeneration, burning gas
reduction, use of methane, improved recovery of
hydrocarbons (EOR3 projects) and geological sequestering
of carbon. It aims to take advantage of all the opportunities
of trading carbon bonds generated for these projects within
the carbon markets, including the Clean Development
Mechanism of the Kyoto Protocol.
3
2008 Inventory of CO2 Equivalent Emissions
Ever since 2001, PEMEX prepares its GHG inventory based
on the Information System on Environmental Safety
and Protection (SISPA), forthe purpose of monitoring its
evolution and taking the necessary control and mitigation
actions. Thus, during the 2001-2008 period, PEMEX’s CO2
emissions increased by 31.7%, from 40.1 to 54.9 MMt.
The increase is brought about by several factors.
Regarding 2008, the increase was due mainly to
the release of sour gas with high nitrogen content
through the maintenance of compression equipment,
the increase of production and operational failures in
offshore facilities of PEMEX-Exploration and Production.
In the Northeastern Marine Region, such burning was
due to the lack of superficial infrastructure within the
oil field of Cantarell, as well as the maintenance of
the oil pipeline of the Potrero del Llano battery to the
Dewatering Plant Naranjos, with which it continues
burning the gas of the Campo Tres Hermanos. In the
Southwestern Marine Region, gas burning was due to
the lack of compression equipment, the entrance of
production wells, compression equipment failures,
release in pipelines, unscheduled shutdown in the CPG
Cactus, by IPIGs and pneumatic pump in re-pressure
lines. In the CPG Cactus gas burning was caused by
several environmental contingencies occurred during
2008, through IPIG in LPG-pipelines and gas pipelines,
failures in sulfur plants and maintenance of PEMEX-Gas
and Basic Petrochemicals’ plants.
Enhanced Oil Recovery
CO2 Emission sources (%)
CO2 Emissions (MMt per year)
PREF
PEP
PGPB
PPQ
2007
6.6 7.0
25.7
6.2 6.6
15.5
2007 15.7
2008 15.6
6.1 6.2
11.2
5.8 6.0
9.9
2005 15.6
2006 15.7
6.0 5.9
11.5
10
10.0 6.1 6.2
20
2004 16.1
10.5 6.2 5.9
2002 14.2
30
2003 16.1
13.3
40
6.4 6.7
50
2001 13.7
PEMEX 2008
58
60
2008
79
16
3
2
Combustion
Burners
Oxidizers
Venting
64
31
3
2
Combustion
Burners
Oxidizers
Venting
Energy Efficiency
The increase of production in the ammonia plants of the
CPG Cosoleacaque resulted in an increase of the CO2
emissions from 678 to 799 Mt, which is equivalent to an
increase of 8%.
PEMEX-Refining registered an increase of less than 1%
concerning the emissions level as compared to 2007.
Energy Consumption
During 2008 PEMEX’s energy consumption showed no
significant changes as compared to 2007.
Energy Consumption by Subsidiary (annual Gcals)
2006
PEMEX does not have GHG emission registries other than
CO2 and methane or substances that cause ozone
damage, because they are immaterial to the processes.
PEMEX’s Last Results in the GHG Mexico Program
The GHG emission inventory prepared by PEMEX is
published as part of its participation in the GHG Mexico
Program. This program is coordinated by the CESPEDES,
and it provides the possibility for Mexican companies
from different sectors to update their national inventory
and report it to SEMARNAT in accordance with the
standard developed by the World Resource Institute
(WRI) and the World Business Council for Sustainable
Development (WBCSD).
During 2008 CESPEDES made public the 2007 results
acknowledged by SEMARNAT. Said results include a total
of 47 inventories from 72 companies subscribed to the
program. These companies reported 118 MMt of CO2,
which account for 18% of the emissions generated
around the country, and, in turn, show an increase
by 13% as compared to 2006. Besides the annual
quantifying of these emissions as part of their
monitoring and control, it is important to highlight the
efforts made by the companies as regards GHG reduction,
policies implementation, mitigation strategies, efficiency,
as well as their participation in CDM projects. For the
presentation of 2008 results in this program’s 2009
publication, PEMEX will present its contribution of
52.9 MMt of CO2.
40,377,345
62,654,467 64,446,169
23,578,819 23,453,472
Petrochemicals
26,659,513 26,929,997
Total
-5
2
63,607,254
3
-1
23,941,382
-1
2
27,111,593
1
1
154,472,161 154,297,476 155,037,574
0
0.5
During 2008, PEMEX’s fossil energy came from the
following sources: 82.6% from natural gas, 14.5% from fuel
oil, 2.8% from diesel, 0.1% from other fuels such as gasoline
and LP gas, while 3.9% relates to electrical energy.
Apparent power consumption (Gcal)
2007
2008
Generation (+)
6,005,702
6,116,391
Imports (+)
1,218,280
1,005,777
Exports (-)
Total
764,310
873,877
6,459,672
6,248,290
PEMEX currently does not quantify indirect GHG
produced by the generation of imported electrical energy;
nor does it identify indirect emissions derived from other
sources (transportation, corporate travel and packages,
among others).
DIESEL
Fuel oil
100
natural
GAS
Refining
Petrochemicals
59
Electrical
Power
80
41,579,362 39,467,838
Refining
42
15
17
26
Others
60
2008
2007
2006
40
2008 06/07 07/08
Energy Consumption
by Subsidiaries (%)
Energy Consumption by Source (%)
20
VariaTIONS (%)
2007
GRI EN5, EN7, EN6, EN18, EC2
Internal Energy Saving
Portage and Electrical Cogeneration
The energy consumption by production unit decreased by
2% over the last two years, which is from 434 to 426 Gcal
per each one thousand tons of produced, processed and
prepared petrochemical hydrocarbons.
According to the 2007-2012 National Development Plan
(NDP) and the Energy Sector Program (Prosener, Spanish
acronym), PEMEX established a strategy that aims to
optimize the use of electrical energy, for the purpose of
achieving a self-supply, increasing efficiency and supply
reliability, and reducing costs. This strategy is planned in two
stages, the short-term and the medium- and long-term.
Climate Change
Energy Efficiency
Methane to Markets
Regarding PEMEX’s different lines of business, in
comparison to 2007, energy consumption in PEMEX
-Exploration and Production registered a 5.8% increase,
along with an increase by 4.1% in production of liquid
and gas hydrocarbons. PEMEX-Refining, in turn, reduced
its energy consumption by 3.0% due mainly to a 0.53%
decrease concerning its production. PEMEX -Gas and
Basic Petrochemicals increased the energy consumption
by 2.1%, while its production decreased by 2.3%. Finally,
PEMEX -Petrochemicals has a higher energy consumption
of 0.6% with a 5.1% increase in its production.
05
Short-term:
• Generalized portage in order to reduce purchases
to CFE and LFC1, through which these companies’
infrastructure is used only for transportation of energy
generated by PEMEX so as to satisfy its own facilities’
demand
• Reliability on supply coming from the CFE networks
Medium- and long-term:
• Large scale cogeneration projects which seek to
substitute the operation of inefficient equipment or
those at the end of the useful life and to sell electric
surplus to the CFE
Besides the cogeneration plant in CPQ Pajaritos, another
plant will be built in the CPG Nuevo PEMEX.
Energy consumption indicators by crude oil and production unit (Gcal/Mt)
Variations (%)
2006
2007
2008
2007/2006
187
169
172
-9.6
1.8
Refining
944
971
942
2.9
-3.0
Petrochemicals
Total
2008/2007
466
475
496
1.9
4.4
4,153
4,280
4,086
3.1
-4.5
447
434
426
-2.9
-1.8
60
Cogeneration Projects
The main purpose of cogeneration plants is the production of electric energy and water vapor. The latter is associated with heat retention for its use in
the industry. Among the benefits provided by the installation of this type of complexes is the reduction of operational and maintenance costs, as well as
the reduction of greenhouse gas (GHG) emission and NOx and SOx particles. Said technology is used in PEMEX to contribute in terms of GHG reduction
to the mitigation of climate change effects, as established by the Kyoto Protocol.
PEMEX 2008
CPG Nuevo PEMEX
PEMEX will develop a cogeneration project in the CPG Nuevo PEMEX, in Tabasco, with which it is planned to portage 260 MW through the CFE network
to other Work Centers of PEMEX and to benefit the users of the region of Villahermosa and three other municipalities. It has been calculated that this
project will have as a result energy savings that will, in turn, reduce greenhouse effect emissions by 940 Mt of CO2 every year.
The development of this project will allow the generation of 3,950 direct and 500 indirect employments and will promote the participation of local
entrepreneurs with a consequent benefit to the local community.
GHG Reduction with
CDM Projects
Methane to Markets
Collaboration Agreements with PEMEX
In November 2004, the Mexican government, through
the SEMARNAT, joined the Methane to Markets alliance
that has the technical support of the USEPA for the
implementation of projects for the use of technology for
methane capture and use. Through PEMEX, Mexico cochairs the Gas and Oil Subcommittee.
In 2007, PEMEX developed a model of business generated
by its CMD projects, in order to guarantee the best
conditions for the State and provide transparency to
the CER trading. This model is comprised by three legal
instruments and a price establishment formula for CERs,
which is authorized since 2008 by the Secretariat of
Treasury (SCHP, Spanish acronym). The aforementioned
instruments are listed below:
• General collaboration agreement that regulates
identification activities for potential projects supported
by third parties
• Letter of intent to process documentation and register
projects before the CDM Executive Board
• Purchase agreement – CERs sale (ERPA)
A list of projects carried out so far with the Methane to
Markets support follows:
Advances in CDM Projects
At the end of 2008, several projects that could potentially
fulfill the requirements of CDM in terms of Thermal,
Electrical, Operational and Cogeneration Efficiency
were identified.
In 2008 letters of intent were signed for three projects.
These projects are currently preparing the Project Design
Document (PDD) in order to be assessed as a CDM project
to achieve an estimated annual reduction of 373 Mt of CO2.
• August 2006 – CPG Ciudad PEMEX. Measurement
of fugitive emissions in Cryogenic plant I and in
compressors with wet seals, used as support for the
elaboration of a CDM project
•August 2006 – CPGs Cactus, Ciudad PEMEX and
Nuevo PEMEX. Identification of fugitive emissions in
processing plants
•October 2007 – CPG Ciudad PEMEX. Measurement of
methane emissions after the substitution of wet seals
in compressors
•October 2007 – CPGs Cactus, Ciudad PEMEX and Nuevo
PEMEX. Measurement of fugitive emissions after
reparation
•October 2007 – CPG Nuevo PEMEX. Measurement of
methane emissions and energy diagnosis
•February 2008 – CPG Poza Rica. Measurement of
•October 2008 – Gas Transportation Pipelines PGPB.
Identification and measurement of fugitive emissions in
pipeline sectors in Orizaba, Ver. and Monterrey, N.L.
•December 2008 – CPG Burgos. Measurement of
Estimated reduction
tCO2e/year
Organism
Type of projects
PEP
Cogeneration, fugitive
emissions recovery
257,000
PGPB
Energy efficiency, cogeneration
484,829
PREF
Energy efficiency, fugitive
emissions, steam system
efficiency
DCO/PGPB
Cogeneration
1,627,980
962,456
61
3,332,265
Total
PEMEX has as also made field measurements in order
to compose an inventory of GHG emission (methane
and CO2e) and evaluation of energy efficiency, mainly
in processing complexes, gas pipelines and in the
Cunduacán compression station of PEMEX-Exploration
and Production. Thus, technical reports have been
prepared for the purpose of improving operational
aspects and having projects for the reduction of
emissions.
Development OF PEMEX Employees
Employees
New Human Resources Model
Merit Reward and Equal Opportunities
Talent Attraction and Retention
Talent Development
Dialogue with Workers’ Representatives
PEMEX 2008
62
06
ASPIRACIÓN
Aspiration:
DESARROLLAR
UNA CULTURA
EN EL
RECONOCIMIENTO
Develop a leading
cultureLÍDER
basedBASADA
on merit
recognition,
DEL
MÉRITO, ELdevelopment
DESARROLLO PROFESIONAL
CAPACIDADES
Y
professional
of capacitiesDEand
skills, value
COMPETENCIAS,
GENERACIÓNtoDE
VALOR Y LA ORIENTACIÓN A
generation andLAorientation
results.
RESULTADOS.
Ing. Óscar H. Alva Rodas
Processes Improvement Manager
Deputy Office of Human Resources
The basis for the achievement of the company’s
strategies and capacity to be successful in the new
challenges it faces is, doubtlessly, on the company’s
employees, their professional capacity and leadership.
This is no news, however, the human resources process
has faced, over the past few years, different changes that
have caused the company to rethink about the related tasks.
Improving the human resources process management,
attracting the best talent available, developing the
career plans, retaining and motivating the most valuable
professionals, and developing generational substitution, are
some of the main issues in the agenda at the present time.
The main milestone for the fiscal year 2008 could be
the management team meeting of Petróleos Mexicanos
to carry out a strategic assessment of the organization,
including in the company’s plan the human resources
strategies that allow defining the quantifiable strategic
objectives in the management framework of PEMEX.
The Human Resources plan has four strategies:
• Transforming in strategies the human resources
role, increasing the service quality and reducing the
transactions costs
• Rationalizing the organizational structure and
designing and implementing a new compensation
policy
• Designing and establishing the infrastructure to attract,
introduce, retain, develop and retire the human capital
• Transform and strengthen a results-oriented culture
We highlight in the year 2008 the effort to further automate
the procedures. Since 2003, we bet to a model where the
work may be self-sufficient, operating systems based on
the new technology, and that allow more dynamic and offer
higher transparency in the human resources services.
Additionally, we continue with the efforts to consolidate in
only one system all existing technological applications for
the human resources processes, including the payroll.
Our aspiration as the human resources team is, doubtlessly,
to become strategic partners of the organization people and
thus, all together, make the company that leadership and
efficiency model we expect to be.
FACTS
CHALLENGES
•Inclusion of strategic objectives related to Human Resources in the Institutional
Strategy of PEMEX
•Integration of all human resources areas in the Corporate Administration Office
•Design of the new operational model of human resources and labor relationships
•Reactivation of the replacement letters program
• Starting of the internship program
•Diffusion and extension of self-service for employees, around 435,000
monthly inquiries
•The Customer Service Center received approximately 90,000 calls monthly
• Work on aspects related to the Energy Reform concerning human resources
•Implement the new operational model of human resources and labor relations
•Carry out projects in accordance with Human Resource’s strategic initiatives
•Reinforce the “Individual Performance Administration” Program, by linking it to a
consequences scheme
•Identify and create a talent map
• Guide the employees toward a value generation culture
• Strengthen the Scholarship Program
•Extend the scope of the ASISTE and MIS-RH modules
GRI EC1, LA14, HR6, HR7, LA13, 4.9, enfoque de gestión, LA1, 2.8, HR3
Employees
At PEMEX, employees are the main asset for development.
Human resources management is the key element and a
priority for Petróleos Mexicanos.
The new operational model of Human Resources and Labor
Relationships aspires to transform the current transactional
scheme into a “strategic partner” scheme, which is more
suitable to PEMEX’s current challenge of simplifying the
assistance and resolution of labor commitments and
improving response time and the quality of its services.
This model consists of four fundamental roles described
as follows:
The Energy Reform boosted efforts to respond to the most
important internal challenges for Petróleos Mexicanos, in
order to modernize the company, improve management,
and carry out its operations in compliance with efficiency
standards.
Total wages, salaries as well as standard and extraordinary
benefits paid during 2008 amounted to 34 billions of
pesos, which represents a 6.9% increase over the amount
paid in 2007.
PEMEX does not differentiate salary rates based on gender.
Compensation for specific positions is based on the
responsibility and its position in the company’s hierarchical
structure. The relationship between the company’s initial
salary and the local minimum wage varies according to
the regions established by the National Minimum Wage
Commission and published in the Official Federal Gazette
(Diario Oficial de la Federación).
Employees
Talent Development
PEMEX’s activities are based in accordance with its
employees’ rights, as well as the communities in
which it operates. PEMEX is committed to the National
Policy on Gender Equality and Non-Discrimination and
promotes non-discriminatory working environments
that guarantee a full exercise of human rights.
Services provided by PEMEX employees are governed
by the Federal Labor Law, the Collective Bargaining
Agreement, and the Work Regulation for Non-unionized
Workers in Petróleos Mexicanos and Subsidiaries. Said
documents establish policies of respect concerning
child and forced labor and Human Rights.
In December 2008, 80.3% of PEMEX employees
were unionized (including permanent and temporary
employees).
12,390
2,651
44,623
42,375
43,065
PREF
37,952
6,671
PGPB
15,041
14,595
14,375
PEP
45,928
12,742
17,284
16,614
16,627
HO
50-54
45-49
40-44
35-39
30-34
25-29
7,707
20-24
20
100
80
60
40
20
- 20
0
60,000
40,000
20,000
17,833
55-59
0.1
0.1
1.0
1.0
45 - 48
40 - 44
11.3
11.2
10.1
9.7
35 - 39
30 - 34
23.1
22.9
14.5
14.6
23 - 29
18 - 22
20.4
20.7
19.7
19.8
13 - 17
8 - 12
20
PGPB
PREF
PPQ
1.29
1.29
2.48
2.47
6.65
6.56
14.54
14.17
18.34
18.47
17.15
17.66
15.49
15.73
11.84
11.70
8.81
8.41
3.08
3.04
0.34
0.49
+64
60-64
15
1,981
10
15,303
2008
2007
5
PPQ
15
58,670
56,819
58,539
PEP
2008
2007
UNION
NON-UNION
10
25,540
24,399
22,155
HO
PEMEX AND ITS EMPLOYEES BY HIERARCHICAL LEVEL 2007-2008 (%)
0
2008
2007
2006
PEMEX AND ITS EMPLOYEES BY AGE
GROUP 2007-2008 (%)
25
UNIONIZED AND NON-UNION
EMPLOYEES (%)
PEMEX EMPLOYEES 2006-2008
5
During 2008, PEMEX recruited 161,158 employees
across the nation, (permanent and temporary
employees) which represents a growth of 4.1%
as compared to the previous year.
0
06
0
HR executive coordinations
• The only means of assistance for Subsidiaries and
corporate offices
• Help to make Human Resources actions support the
achievement of business objectives
• Asses every Subsidiary in terms of HR and LR
Expert centers
• Specialized work teams to implement projects and
programs that will support business strategies
Shared services centers
• Enable the standardization of processes, automation
and standardization of services (self-service, Customer
Service Center, institutional systems, etc.)
Counter services
• Regional managements to simplify the contact points with
the Mexican Oil Workers Union (STPRM, Spanish acronym)
Merit Reward and Equal
Opportunities
The company respects diversity, promotes equal
opportunities and non-discrimination related to gender,
race, age, language, socioeconomic level, abilities,
religion, disabilities or any other characteristic that may
impede the full exercise of and respect for human rights.
As a decentralized government agency, PEMEX is part of the
National System on Gender Equality, which allows for the
development of actions in an institutional sector in order to
implement the Equality and Non-Discrimination Policy,
in compliance with the NDP, Chapter 3 “Equal opportunities”,
and other related regulations.
In collaboration with the National Women’s Institute
(INMUJERES, Spanish acronym), the National Council
for Prevention of Discrimination (CONAPRED, Spanish
acronym), the PGR and the United Nations’ Development
fund for Women (UNIFEM), several actions have been taken
so as to follow a gender and non-discrimination perspective.
One of the priority actions in permanent development is
awareness and training of personnel regarding gender and
non-discrimination matters. In 2008, cultural, formative,
academic and promotional activities were organized with
the purpose of contributing to a permanent promotion of
campaigns, services and mechanisms that the main Federal
Government entities and other self-governing entities
organize and carry out in order to boost cultural changes
towards equality.
NEW HUMAN RESOURCES MODEL
GOVERNMENT BODY
PGPB
Production
Pipelines
Liquefied Gas
and BP
Natural Gas
Support Processes
PPQ
Operations
Marketing
Support Processes
HEALTHCARE
SERVICES
Healthcare Services
COUNTERS
HR and LR service
deliveries
Local training support
HR and LR operation
projects
Regional support for
organizational processes
Local recruiting and
hiring support
Local support for HR and
LR operational processes
Claims documentation
REGIONAL SUPPORT FOR HR AND LR OPERATIONS
Local and regional
training
Claims investigation and
documentation
Labor agreements
HR PROCESS AND IMPROVEMENT
CENTER SYSTEMS
EXPERTS CENTER
Organization; compensation; performance
models and strategies; change management;
attainment, development and training of
key positions and executives; acquisition,
development and training; labor relations
development; knowledge management
SHARED SERVICE CENTERS
Studies on labor, workforce projections,
payroll processing, performance management,
development management, SSPA support,
HR indicators and reports, recruites and hires,
personnel benefits and services, government
management
65
PREF
Production
Marine and pipeline
distribution
Storage
and distribution
Commercial
Support Processes
EXECUTIVE COORDINATION
PEP
Exploration
Exploitation
North, South,
northwest marina,
southwest
SIDOE and marine
services
Support processes
GRI HR3, LA13, EC7, LA4, LA2
Employees
Talent Development
06
During 2008, PEMEX carried out several activities to
promote a corporate policy based on equality,
non-discrimination and respect for human rights. These
actions were undertaken by the inter-institutional
committee of gender and non-discrimination, and the
most outstanding are listed as follows:
• The institutional culture survey with a gender and
non-discrimination perspective with the participation
of 17,952 individuals (7,065 women and 10,887 men).
The survey was carried out in the corporate office,
institutions, affiliates, and the Mexican Oil Institute. For
the second time, we met the employees’ perception in
specific subjects related to gender and discrimination,
such as professional training; vertical and horizontal
promotions; sexual harassment; recruitment, labor,
family and personal welfare, communication; salaries
and benefits; working environment; impairments
(visual, mental, motive, hearing and language); as well
as discriminating factors related to age, appearance,
health condition, sexual preferences, religion, and
socioeconomic condition
• Regarding awareness, training and professionalization,
1,481 individuals attended workshops and 3,059 attended
conferences and cultural events commemorating the
“International Women’s Day” and the “International Day for
the Elimination of Violence against Women”, among others
• Actions were concluded for the first institutional online course, “Gender and equality between men and
women”, which will be applied first to a population
of approximately 8,000 people during 2009-2010.
Personnel working in affiliate bodies and the Mexican
Oil Institute will participate in this formal training
• As part of the permanent strategy for spreading
information, informative material related to different
subjects was edited and published, such as:
- Short stories on gender 2008 - 2009, with a quarterly
distribution of five short stories related to violence,
equality, non-discrimination, human rights and sexual
harassment. The first copies were delivered to 50,000
employees who work mainly in regional Work Centers
and have no access to a computer because of the
type of job the carry out
- The books “A culture of respect, opportunity equality
and non-discrimination”, with informative content
regarding equality and graphic material from the first
children’s forum on drawing and painting against
violence, for a population of 1,000 people
- Informative postcards, three designs including
information related to equality were published for
5,000 people
• We participated in equality campaigns organized by
INMUJERES, “Discrimination is prohibited” by the
CONAPRED and ¿Is a woman missing in your family?
by the PGR, which allowed publishing information
through published and electronic means around the
country
• The exhibition of the first forum on children expressing
against violence through drawings and paintings was
presented with 215 works made by girls and boys from
three to twelve years old
PEMEX continues offering its workforce an environment
of opportunity equality regarding participation and
competition. PEMEX’s directive body is integrated by
the CEO, four Corporate Directors and four Subsidiary
Directors, whose average age is 52 and have an average
seniority in the company of 17.3 years. It is worth
denoting that PEMEX’s Administrative Council is chaired
by Georgina Kessel, PhD, Secretary of Energy.
DISTRIBUTION OF PEMEX’S GLOBAL
WORKFORCE BY GENDER (%)
WOMEN
MEN
2008
23
23
77
2006
22
100
80
60
78
40
• Gold medal in the “Best Director Talent” category for the Corporate Administration Office of
Petróleos Mexicanos
• Bronze medal for “Best Administration in Human Resources” awarded to the Deputy Director’s Office
of Human Resources in PEMEX
2007
20
The National Excellence Award in Contact Centers is organized by the Mexican Institute of Teleservices,
and is in turn awarded to different public and private companies so as to acknowledge best practices
related to operations, technology, human resources, costumer services, multi-channel systems, and
social responsibility. Out of the 162 cases presented by 30 participating companies, PEMEX obtained
four awards for its practices. Two of them were related to human resources:
77
0
PEMEX 2008
66
Acknowledgement
Talent Attraction and
Retention
PEMEX generates value toward the communities where it
operates by hiring personnel from these communities.
This constitutes an important source of employment and
income. As set fort by the new human resources
strategies, the company implements different methods
in attracting the best talent available and several
development plans for retention.
PEMEX’s 2006 – 2008 WORKFORCE
At present, 73.5% of staff has an indefinite work contract
(permanent employees), which clearly demonstrates
PEMEX’s intention to provide its workers with stable
employment.
The retention strategies carried out by the company in
2007 start to gradually reap benefits. Turnover had a 0.3%
decrease against 2007. PEMEX gathers its efforts to offer
working conditions that motivate its employees to remain
and generate value for the company, and it also
maintains its goal, gradually reducing rotation in staff.
The average seniority of non-union workers is 17.5 years,
while for union workers it is 18. An average age of 43 is
estimated for union and non-union, and permanent and
temporary workers from the Head Office and the
Subsidiaries within the company.
PEMEX WORKFORCE 2006-2008 Includes union and non-union employees
2007
TEMPORARY
PERMANENT
2008
TEMPORARY
PERMANENT
TEMPORARY
Head Office
17,235
4,920
18,714
5,685
19,140
6,400
PEMEX-Exploration and Production
35,497
23,042
35,619
21,200
36,366
22,304
PEMEX-Refining
37,532
5,533
37,529
4,846
39,275
5,248
PEMEX-Gas and Basic Petrochemicals
10,475
3.900
10,699
3,896
10,683
4,358
PEMEX-Petrochemicals
12,688
3,939
12,613
4,001
12,843
4,441
113,427
41,334
115,174
39,628
118,407
42,751
2008
Age Group
Under 20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
Over 64
Total
Turnover by gender (%)
Turnover by Business Unit (%)
HEAD OFFICE
M
W
32
15
89
92
66
63
57
47
37
34
18
20
10
18
11
5
1
1
0
2
0
2
321
299
0.20
0.19
0.38
PEP
M
W
83
28
297
119
296
119
176
62
129
55
84
28
51
12
18
5
14
2
3
1
1
1
1,152
432
0.71
0.27
0.98
PREF
M
W
64
11
296
118
618
232
505
159
356
166
347
118
217
61
111
43
86
16
31
6
20
1
2,651
931
1.64
0.58
2.22
PGPB
M
W
38
11
61
31
55
21
23
14
20
12
9
6
1
1
2
1
1
0
0
0
0
0
210
97
0.13
0.06
0.19
PQ
M
W
27
5
37
16
31
11
15
5
10
8
3
6
5
0
6
1
2
0
1
0
0
0
137
52
0.09
0.03
0.12
TOTAL
M
W
244
70
780
376
1,066
446
776
287
552
275
461
178
284
92
148
55
104
19
35
9
21
4
4,471 1,811
2.77
1.12
3.90
2007
Age Group
Under 20
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
Over 64
Total
Turnover by gender (%)
Turnover by Business Unit (%)
HEAD OFFICE
M
W
78
74
113
101
153
144
161
135
112
88
62
64
40
30
40
7
19
7
8
3
2
1
788
654
0.51
0.42
0.93
PEP
M
W
142
41
355
108
485
191
336
81
212
61
124
26
104
20
44
9
12
1
0
3
5
1
1,819
542
1.18
0.35
1.53
PREF
M
W
44
10
109
43
138
55
94
41
66
40
85
26
57
14
40
4
15
2
11
1
10
0
669
236
0.43
0.15
0.58
PGPB
M
W
102
39
181
68
168
91
75
31
41
34
22
13
24
9
8
1
4
2
4
0
4
0
633
288
0.41
0.19
0.59
PQ
M
W
91
32
132
50
169
55
125
31
93
38
41
11
22
6
11
0
2
0
0
0
2
0
688
223
0.44
0.14
0.59
TOTAL
M
W
457
196
890
370
1,113
536
791
319
524
261
334
140
247
79
143
21
52
12
23
7
23
2
4,597 1,943
2.97
1.26
4.22
Total PEMEX
67
PERMANENT
2006
ENTITY
GRI LA3, EC3, 2.10, LA10, LA11, SO3, LA12, HR8
Social Benefits
The benefit scheme granted by the company to its
employees works for the attraction strategy as well as for
the retention strategy, in its constant search for the best
talents. It is also an effort recognition for its employees
that contributes in improving quality of life.
Likewise, from the negotiations in 2008 between the
company’s representatives and union representatives,
the most important achievements related to the workers’
benefits are listed as follows:
Employees
Talent Development
• Improvement of labor conditions: there was an
improvement of the union occupational structure of
the Operational and Maintenance Departments, as
well as a reclassification of positions so as to foster
operational efficiency, profitability improvement and
to diversify the productive capacity of its facilities. This
will be achieved through the modernization of the
refining industry, which includes, among others, the
processes of refining reconfiguration with the purpose
of satisfying the growing demand for oil products
06
This contributes directly to the improvement of the
employees’ quality of life, health and specialization.
• Social benefits: loan allocation policies to buy real
state were modified, which widens the possibility for
more employees to have access to this benefit
• Economic benefits: regarding housing, the amount
granted as benefit was increased and the interest rate
paid by the employee when buying real state decreased
• Medical services: facilities, medical equipment and
medical staff training processes were improved
• Sports: the XXVII Oil National Sports Games took
place in order to stimulate workers to practice sports
as a way to improve their physical and overall health
• Health and Safety: working days were organized with
the purpose of checking the working facilities, and
employees participated through mixed work teams
• Children’s Development Centers (CENDI, Spanish
acronym): In 2008, an average of 3,345 children took
part in the program. This benefit helps working mothers
to develop labor activities in a more efficient way,
knowing that their children are carrying out activities
that will foster a healthy growing process
• Artículo 123, elementary schools: In 2008, 9,536
children of oil workers and 21,388 children from the
community received education. This represents a total
of 30,924 students with a staff of 1,403 teachers
• Libraries: The Company has libraries in 22 cities around
the country
• “Ingeniero Salvador Benavides Acuña” sports facilities:
In 2008, a monthly average of 19,578 users practiced
sports. During July and August, a summer course was
provided to 500 children of workers every day, and, in
September, remodeling works were undertaken at
these facilities
• Comprehensive Housing Financial System (SIFIVI,
Spanish acronym): a program designed to support
workers through mortgage credits. In 2008, 1,580
credits were granted and 3,761 more credits were
granted for housing repairs
• Family Integration Centers (CIFA, Spanish acronym):
there are 15 CIFAs operating in Mexico for employees
and neighbors in the community
• Social and Full Service Centers for Senior Citizens
(CESIPAM, Spanish acronym): focused on meeting the
needs of senior citizens and the employees and their
families
• Morelos Social Center: to start and/or finish elementary
studies
• Salary Protection: a salary protection program for workers
based upon agreements with suppliers offering discounts
• In order to support the employees who are nearing
retirement, the company has designed a program
called “New Phase of Life”
PEMEX fosters the Federal Government initiative that seeks to
increase the educational level of personnel. For those interested
in having an elementary and secondary school certificate, the
PEMEX- INEA National Accreditation Day 2008 took place from
October 6 to 10. A web site and an e-mail contact were created
so as to look up information and set an appointment for a free
diagnostic test.
PEMEX 2008
68
For the fifth consecutive year, PEMEX awarded employees from head office and seven
petrochemical complexes.
In order to promote a service culture with higher quality and efficiency aiming to increase productivity and
competitiveness, for the fifth consecutive year, the presentation of 55 awards to the most outstanding employees
in 2008 took place. The awarded employees belonged to work teams for projects from PEMEX -Petrochemicals,
seven petrochemical complexes and the head office, which excelled in integrity, innovation, competitiveness,
sustainability and social commitment.
Additionally, the PPQ Office was awarded the “2007 Quality Award of Veracruz” in the Large Industry
category, by the Governor of the State of Veracruz.
These actions are registered within the framework of the institutional strategy that seeks to improve
PEMEX’s performance in order to increase productivity and efficiency.
Talent Development
PEMEX develops an annual training program with the
purpose of developing talent. This program is based on
the results of the development needs analysis.
In 2008, PEMEX invested 663.9MM$ in training
programs for its personnel, which represents an
increase of 45% against 2007.
2006
2007
2008
Trained employees
Concept
145,996
147,275
201,661
Hours
624,179
777,925
877,261
13,192
14,040
16,023
Courses taught
For union staff members, a program was established
so as to standardize the training and knowledge assessment
model. In 2008, 12 specialties were developed to define
individual training programs for approximately 27,000
workers. Moreover, there was an improvement of the contractual
training quality through the certification of 396 internal
instructors at an institutional level.
PEMEX is convinced that in order to achieve excellent
professional development training, it is necessary to account
for a comprehensive training curriculum. Therefore, besides
technical training, personnel receive courses concerning
complementary areas such as human relations, oral and
written communication, languages, ethics and values,
among others, which foster the development of abilities
and skills that strengthen talent.
The “PEMEX on-line” program was designed in 2008 and it
will be a communication conduit between scientists and
the academic community, and it already accounts for the
participation of universities in Mexico and Europe.
For PEMEX, training in occupational health and safety
is one of the key elements to improve the development
and management of this matter. During 2008, 197,534
hours of training related to safety and fire control were
given to a total of 96,192 people.
PEMEX fosters among its employees activities with a
high level of ethics, transparency and service quality.
From 2005 to 2008 23,173 workers have been trained
through e-learning.
Moreover, among workers who have been trained, we may
include those working on physical safety because of the
importance of their responsibility.
2007
2008
140,293
189,170
Attendees
76,866
94,840
Fire Fighting Training (hours)
6,545
8,364
Attendees
2,254
1,352
2008 Training by Subject (%)
36.5 34.4
5.7
15
8
0.5
Training by PEMEX Population Sector (%)
Safety
Technical
IT
Management
Behaviour
Languages
22
78
Professional
Union
69
CONCEPT
Safety Training (hours)
Safety and Fire Fighting Training
GRI LA3, HR5, LA9, LA6, LA5, EC5
During 2008, 1,469 workers participated in the Conduct
Code course which represents three hours per worker.
Institutional System on Individual Performance
Management (SIADI, Spanish acronym)
Human Resources, as a strategic partner, is responsible
for continuing the implementation of the institutional
performance management system in place at Petróleos
Mexicanos and Subsidiaries, in order to successfully
implement the strategy and development of human
capital.
Employees
Talent Development
SIADI is the institutional model to measure and assess
the true performance of staff members, to strengthen the
communication between supervisors and its employees,
as well as to identify the areas of opportunity to
develop management skills and therefore contribute
to the improvement of results for the company.
06
Subsequently, as of 2004, efforts have gathered in
training personnel in certain knowledge levels of SIADI.
The objective of this training is to improve operational
and administrative results through consistent individual
objectives and a coherent value creation.
Results achieved in training and development of skills for the
new performance management model have made it possible
for executives to have objective information about how their
job and management style is perceived and assessed,
not only by their immediate supervisor but also by their
co-workers. Thus, executives may develop working styles
in accordance with an appropriate organizational
environment for professional development and work
team performance.
During 2008, in an effort to reinforce this system,
follow-up was given to the Methodology Training
Program, which produced a total advancement of 76%
of executives at a level of 41 or higher.
Moreover, 14,954 workers in the 30 to 39 level have been
trained through the e-learning method. This amount
represents 56% of the total population in this sector.
As of 2005, the individual performance evaluation started
with the methodology established by SIADI. From the second
semester of 2007, its methodology was modified as regards
the use of established forms, strengthening the performance
measurement culture focusing on results, with a 90%
participation rate of nonunion employees in PEMEX.
ACHIEVEMENTS:
• Greater strategic clarity among the executive group
• Review and determination of objectives aligned with
the strategic plans
• Understanding the performance management process
• Reinforces organizational leadership, as bosses
moderate all stages of the process
• Synergy by having a common performance
• management system for Petróleos Mexicanos and its
Subsidiaries
• Identify opportunities and develop each executive’s
management effectiveness
• Standardization of SIADI concepts for Petróleos
Mexicanos and its Subsidiaries
Full Service Human Resources Module (MIS-RH)
In order to provide assistance to staff members that do not have a computer, or that do not have a self-service booth at their Work Center, a Full Service
Human Resources Module was implemented.
This module consists of a Customer Service Center with a telephone menu available by dialing extension number 49123 and a Services Site within the
Intranet. This module aims to respond to calls concerning queries, complaints, suggestions and claims besides doing administrative procedures. The
MIS-RF is available for PEMEX workers and retirees.
In 2008:
•It responded to a total of 1,074,158 queries
•Telephone menu services were increased and several new processes were released through its service agents
•The MIS-RH system was awarded a medal in the National Excellence Award in Contact Centers and also received a medal in the Best Human
Talent “Director Level”. This event is organized by the Mexican Institute of Teleservices
•The use of the MIS-RH module during 2008 generated approximately $56.3 million pesos in savings
Safe Assistance for Information, Services and Procedures for Employees (ASISTE, Spanish acronym)
PEMEX 2008
70
In order to optimize response times and simplify administrative procedures for its active workers and retirees, as well as to eliminate discretional
matters, PEMEX implemented the ASISTE Module with self-service booths and a website published in the internal network and the Intranet. The
following services are provided through such mechanisms:
1.General information
2. Financial information
3. Proceedings
4. Password modification
5. Guidelines
6. Medical appointment and disabilities queries
Ever since its implementation, from November 2003 to December 2008, 12,733,538 queries have been made, 5,214,108, which were followed up
with a total of 35,000 procedures during the last year. The operation of the ASISTE Module has generated savings of $684.5 million pesos. At present,
125 self-service booths are in operation.
Dialogue with Workers’
Representatives
It is worth mentioning that every year there is a salary
revision carried out in collaboration with the company’s
representatives and union representatives. Moreover,
every two years there is a contract revision, for which
10 Mixed Sub commissions are appointed to negotiate,
analyze and structure the labor conditions that will be
applied for the following two years.
With the 2008 negotiations, there was a 4.8%
salary increase and a 1.9% benefit increase for
workers. This meant a real improvement of the
workers’ income–even above inflation.
Salary Raise Benchmark
(Annual inflation through July)
Salary Raises
Benefits
Inflation
6
5.39
5
4
3
2
4.1
3.06
1.7
1
0
71
4.25
4.8
4.14
1.6
1.9
Ranking and promotions
Tabulator
Restructuring
Training
Industrial health and safety
Medical services
Productivity quality
Culture and sports
Clause 3 (non-union positions)
Clause 34 (that considers hiring for specialized jobs)
In 2008, there was an image improvement of the Collective
Bargaining Agreement Collaboration Website, by including
information related to agreements and appendix. This
provides workers with an online display for inquiries
regarding the total content of the Collective Bargaining
Agreement 2007-2009. This type of electronic information
contributed to considerable savings in copy printing at a
nationwide level, and has fostered a transparency
environment among personnel and the public opinion.
2008
The constant change and improvement of the company’s
processes generates proposals to update the workers’
labor conditions established in the bargaining agreement.
Furthermore, concerning the company-union coordination,
there are 10 National Mixed Commissions in charge of
observing the fulfillment of the guidelines established in
this labor relationship, as well as the analysis of the
improvement alternatives of labor conditions focused on
the improvement of the labor relationship for a productivity
growth in the company. These commissions are designed
in such a way that they cover the total content of the
Collective Bargaining Agreement, such as:
Likewise, in 2007, PEMEX and the Mexican Oil Workers’
Union representatives reviewed the 2007- 2009 collective
bargaining agreement. The Company also posted the terms
of the 2007-2009 Collective Bargaining Agreement on the
Intranet, to assure the effective and safe communication
of its content.
2007
Since 1942, the company, as well as the union, has a
relationship that has been formalized through a Collective
Bargaining Agreement that takes into consideration matters
of health, safety and medical services.
Through their supervisors, workers are notified about
organizational changes that may affect them, in agreement
with the Federal Labor Law and Clauses 85, 86 and 87 of
the Collective Bargaining Agreement and Articles 56 and 57
of the Petróleos Mexicanos and Subsidiary Agencies’ Labor
Regulation for Non-Union Workers.
2006
Petróleos Mexicanos maintains a respectful relationship
with the STPRM in an alliance that promotes the company’s
substantial development and its workforce welfare by
respecting their freedom of association.
Community Environmental Responsibility as Strategic Policy
Ecological Land Management
Environmental Protection Measures
Environmental Impacts of Leaks and Spills
Remediation of Environmental Liabilities
PEMEX 2008
72
07
ASPIRATION:
PEMEX’s commitment is to build co-responsibility schemes in
an effort to link the company in a creative and constructive
way with local development bodies, in accordance with the
strategic line of community environmental responsibility.
Quality, Industrial Safety and Environmental Protection Manager
PEMEX-Petrochemicals
At PEMEX, we are aware of the territorial coexistence of
our main operations with the highly social and economic
marginalized zones, as well as those with a great natural
richness. This paradox between economic poverty and
natural richness has led us to set out the challenge to
adopt measures to improve the possibilities that less
favored communities, owners of these resources, may
sustainably live from their exploitation. We believe that
this is the best scheme of co-responsibility, where local
communities really keep their natural resources, exploit
them without exhausting them, and depend less on welfare.
We also know that our operation implies the management
of processes and products that may represent a risk for the
neighboring areas when these defined absorption zones
for oil facilities are occupied by human settlements. We
understand the great challenge we face, and we accept
the commitment for the natural environmental protection
in the communities where we operate, for both health and
safety of the people towards the interior and exterior of the
facilities, and the preservation of ecosystems surrounding it.
We consider it important to introduce Community
Environmental Responsibility as one of the three pillars
of environmental protection strategy, for which PEMEX
applies a preventive vision to its environmental protection
efforts, and a proper coordination with the authorities
and communities, through participative programs of land
management and biodiversity conservation.
It is necessary to acknowledge that our activities cause
different situations for which were are prepared, and that,
throughout the years, they have allowed us to develop
a great deal of experience in managing environmental
impact as regards water and soil due to accidental spills
and atmospheric pollution due to leaks of emissions
arising from our production processes. Even in the case
of negative impact experiences for the environment,
they have been tackled with a discipline of continuous
improvement in operations, including safety practices
and emergency plans, mitigation and remedial measures for
environmental impact in accordance with the corresponding
regulations. This discipline has arisen, to a great extent,
from the maturity that has enabled us to modify the
environmental protection focus to avoid events, instead
of facing their remedial. This does not imply decreasing
the importance of remedial plans in the environmental
protection strategy.
As concrete examples of the environmental impact
remedial actions, are those applied for the improvement and
restoration of the 18 de Marzo, refinery in Azcapotzalco,
Mexico City, as well as the remediation of the sulfur
plant unit of Texistepec, Veracruz. As examples of
environmental conservation measures, the programs
for the environmental education developed by PEMEX in
Pantanos de Centla (Tabasco) and the recovery of the
wetlands in Veracruz. Undoubtedly, the most important
project due to its complexity and richness is that of the
Jaguaroundi Ecological Park, property of PEMEX. It has
an area of 1000 hectares, certified as protected natural
area and as Environmental Management Unit, neighboring
the complexes of Cangrejera, Morelos and Pajaritos,
in the State of Veracruz. In this great project of natural
environmental protection, the design and planning were
carried out during 2008, and the execution of the works
to be opened to the public will take place during 2009.
The future regarding natural environmental protection
appears to be promising, with the introduction of a
payment methodology for environmental services which
enables us to be better prepared for environmental services
costs required for our operation, and, at the same time,
present possible additional incomes for the communities
owning the ecosystems that provide said services.
Facts
Challenges
•Implementation of the strategic line of Community Environmental Responsibility
• Almost 30 MM$ were invested in support of Protected Natural Areas
• Active participation in the ecological land and sea management
•Protection to more than 200 species in 1.1 MM natural hectares
•Bidding process for the construction of the Jaguaroundi ecological park
infrastructure, which will be inaugurated in 2009
•To inform society about the efforts made by PEMEX in the protection of the
environment through actions and investments
•To open the Jaguaroundi ecological park in Veracruz
•To decrease the environmental impact caused by accidental leaks and spills
•To remediate 100% of the accumulated environmental liabilities and support in
protected areas
•Land Management and protection of buffer zones in land and sea facilities
GRI EN14, management approach, EC1, EN11
Ecological Land
Management (OET, Spanish
acronym)
One of the three axes of the 2007-2012 Environmental
Protection Strategy is the Community Environmental
Responsibility, which comprises the activities responsible for
conservation and compensation focused on a sustainable
maintenance and use of oil basin by the owners. The full
and sustainable use of water, forest restoration, fire
control, protection of the agricultural frontier and
ecological land management are included among the
strategy activities.
The 2007 - 2012 National Development Plan (PND,
Spanish acronym) promotes a general land and sea
ecological management to revert damages caused to
ecosystems, through actions to preserve water, land
and biodiversity. (Strategy 10.1 on the PND)
Community Environmental
Responsibility as Strategic
Policy
07
Accordingly, the land ecological management is aimed at
identifying and using the national territory’s productive
potential through actions that keep in harmony with the
environment that guarantee the sustainable use of
resources. Therefore, it is necessary to implement actions in
order to execute (strategy 9.1) and develop policies for a full
and sustainable use of seas and coasts (strategy 9.2).
PEMEX, as a decentralized government agency, is
committed to the implementation of all PND strategies
in order to carry out the management according to the
place where it operates. Thus, it is a permanent
member of the Ecological Management Committee and
it currently co-participates with the SEMARNAT and
State Governments in the management of:
Project
Area of Influence Project Status
Gulf of Mexico and Caribbean Sea
Regional
In process
Tuxpan
Regional
In process
Burgos’ Basin
Regional
In process
North of Chiapas
Review of the Ecological
Management Program in Tabasco
Campeche, Oaxaca, Madero-Altamira
Regional
In process
State
Regional
In process
In planning
process
Environmental Protection Strategy 2007-2012
OET
Objective: Give certainty to
investments by incorporating them
to the land planning in order to
avoid conflicts with communities.
Support for Biodiversity Protection and Conservation
Protected Natural Areas
Reforestation
Restoration of hydrological basins
Objective: To prevent and
compensate environmental impacts
of oil activities in natural protected
areas.
Objective: Contribute to the
decrease of negative effects in
climate change.
Objective: To prevent and
compensate environmental impacts
of oil activities in water.
Follow up on:
• Natural resources in oil zones
(PEP)
• Construction of the Jaguaroundi park
• Environmental monitoring (PEP)
• Relaunch the support to Protected
Natural Areas in oil basins
(Pantanos de Centla, Términos
Lagoon, Otontepec mountain
range, Alvarado)
Follow up on:
• Identify areas to be reforested (PEP
and CONANP)
• Locate and follow up on areas
through SIG
• Identify projects with State
governments
• Support projects for fire fighting
and prevention
Follow up on:
• Characterization study for the
restoring of the low basin of the
Coatzacoalcos river
• Support for the preservation of
the high basin of Tabasco’s plain
(Montes Azules)
Description of the current
vegetation of Montes Azules Lacantún to prioritize the areas
to be protected and kept in 415
mil ha.
Reforestation of more than 300
ha in Alvarado involving the local
community.
Treatment of sewage collected from
three municipalities to be used in
processes of the “Francisco I.
Madero” Refinery.
(See Study Case “Measures for the
preservation of Alvarado wetlands,
Chapter 7)
(See study case “Restoration of the
Low Basin of the Coatzacoalcos
River”)
2008 ACTIONS
Follow up on:
• Gulf of Mexico
• Tuxpan
• Cuenca de Burgos
• North of Chiapas
• Coatzacoalcos
• Tabasco
PEMEX 2008
74
RELEVANT ACTIONS
The Ecological Land Management
Plan (POET, Spanish acronym) of
the Cuenca de Burgos was officially
published. Also, the log in which the
regional development will be
recorded was prepared, along
with the work group in charge of
following up on this matter.
The development of the Strategy for
the Preservation of Biodiversity and
Environmental Services began in
PEMEX. Currently, such strategy is
being consolidated.
(See “Project continuity and
improvement”, Chapter 7)
Measures
Petroleos Mexicanos has entered into joint ventures with
other sectors on the aforementioned management projects,
which are aimed at fostering an organized, productive and
responsible development, as well as recovering national
soil with sustainability criteria (strategy 9.3).
Additionally, it is expected that the application of the
crossed sector management within the communities
were PEMEX operates will bring, among other things,
the following benefits:
• Enable the identification of compatible practices for
development
•Reduce conflicts between practices and users
•Give certainty to the private sector for new investments
•Promote an efficient use of resources and space and
reduce the impact on the environment
•Establish areas of environmental importance and
awareness and reduce the risk of conflicts with
development
•Achieve the goals of marine planning and
comprehensive management
•Assure a space for the conservation of biodiversity and
nature
•Provide a context in order to establish sustainable
management networks in ecosystems and its
resources
The interaction among survival needs of different plants,
animals and other living beings has caused a decrease and,
in extreme cases, the extinction of new species; thus, the
earth’s biological land inventory, also known as biodiversity,
has been modified. From this extinction, and the constant
demand of more resources for the survival of human beings
and an environment comprising factors such as population
growth, arises PEMEX’s responsibility awareness as
regards biodiversity, and protection and preservation of
the environment, in line with a sustainable development.
For this reason, and given that the origin of oil exploitation
is based on these needs, PEMEX has gathered efforts to
participate in the Mexican biodiversity conservation
within the communities in which it operates or has
operated. These efforts have been reflected on a strategy
implemented the previous year, including the financial
support given by PEMEX in 2007-2008 for environmental
conservation projects located in those States which have
had a relevant impact due to production procedures of
the oil industry. Chiapas, Tabasco and Veracruz are
among the States that have received resources for
prevention, mitigation or remediation of impacts caused
by PEMEX. The following charts give detailed information
of the projects.
In 2007 and 2008, PEMEX invested 29.67 MM$ in support
of protected natural areas and sensitive areas.
Main Areas Rich in Biodiversity Located in Oil Influence Zones
Supported Area
Classification*
Physical Description of the Area
Protected Species in the Area
Ramsar site since 2004 302,707 ha. It belongs to the estuaries-lagoon system
comprised of costal salty water lagoons and several
rivers, such as the Papaloapan; 81 of its registered
species are migratory and 120 are resident.
Rhizophoramangle,Lagunculariaracemosa
andAvicenniageminans,Royalduck,Manatee,
aratingaholochlora,MazonaoratrixandDoricha
eliza,Geranospizacaerulescens,Falcofemoralis,
Botauruslentiginosus,Campylorhynchusufinucha,
Opornis tolmiei, Nomo
Mangrove swamps
and wetlands of
Tuxpan, Veracruz
Ramsar site since 2006 267,010 ha. This is the largest mangrove swamp that
still remains north of the Papaloapan. It has four species
of Mexican mangrove swamps (Rizophora mangle,
Avicennia germinans, Laguncularia racemosa and
Conocarpus eructus)
Zolcuate or Cantil moccasin snakes, Dark
herons,Minorsmallblackeagle,Silver-beak
woodpeckers,Crocodiles,Pricklyulfiguanas,
Monarchbutterflies,Redegrets,Turtles,American
storks, and the Moctezuma oropendola
Otontepec mountain
range, Veracruz
Natural Protected Area
since 2004
Road eagle, Gray small eagle, Canoe-bill
toucan,Eleutherodacylussp.andLaemanctus
serratus,Kinkajoubadger,Oldan’shead,and
Anteaters.
6,870 ha. It has five important ecosystems based on its
altitude grade (evergreen forest, evergreen sunflower,
medium subperennifolia jungle and medium jungle
acahual )
* According to the National Commission of Protected Natural Areas
Wetlands of
Alvarado, Veracruz
75
Pantanos de Centla, Biosphere Reserve since 331,200 ha. It has glen and marsh ecosystems, medium 13 flora species, 56 bird species, 46 mammal
Tabasco
1992
jungles and low sub-perennifolia and mangrove swamps species, 36 reptile and amphibian species and
six fish species
GRI EN15, EN25, EN13,
EN14, EN12
07
“Pantanos de Centla” Biosphere Reserve
(RBPC, Spanish acronym)
Follow-up on and Improvement of Conservation
Projects
The RBPC has the seventh place in the world for its
contribution concerning environmental services. This is
due to the amount of fresh water discharged from the high
basin of the Usumacinta and Grijalva rivers Furthermore, it
is considered as a museum of the most important aquatic
plants in Middle America. In the RBPC, 567 plant species
have been identified. These have been grouped into eight
vegetable associations: hydrophytes (associations of
emerging, floating and sub aquatic hydrophytes), medium
altitude evergreen forest of Bucida buceras (pukteal), low
evergreen forest of Haematoxylon campechianum, bushes
of Dalbergia brownii (mucal), palm trees of Acoelorraphe
wrigtii (tasistal) and Sabal mexicana (guanal), mangrove,
riparian vegetation, different crops and pastures.
During 2008, PEMEX followed-up the projects implemented
in 2007 for biodiversity conservation and oil basin
compensation. The most outstanding projects are
listed below:
The RBPC is the habitat and shelter of 255 species of local
and migratory birds such as the chocolatera and the coco
ducks, 104 mammal species, 68 reptile species and 52
fish species such as the sea bass and the alligator gar,
besides 27 different species of amphibious. In the calm
waters of the swamps we may find sea bass, shrimps
and shads among other species that use the area as
shelter or for nesting. The swamps have been shelters for
important endangered species such as the manatee, the
swamp crocodile, the black howler monkey, the jaribu,
and seven different turtle species (guo, mojina,
pochitoque, icotea, chiquiguo, white turtle and taiman).
The swamps enable the retention and infiltration of water
to interior soil layers, reducing the effect of the large river
avenues, since they act as sponges and wind barrier.
Moreover, the large amount of alluvial deposits from the
rivers allows swamps to occupy little by little sea land,
with which it is possible to stabilize the coast line and
avoid the soil salinization.
76
•The Program for improvement of productive systems
aimed at increasing the forage of native plants of
fast development, the enrichment of patches of
successional vegetation known locally as acahuales
and the incorporation of green manure in crops. The
economic investment of 13 million pesos produced
600 beneficiaries and 6000 hectares
•The creation of 15 modules of aquiferous production with
native species. An investment of 700 thousand pesos has
already enabled the first successful harvest
•Technical studies were supported through the payment
of environmental services to four communities in
Marqués de Comillas (Chajul, Galacia, Playón de la Gloria,
Quiringuicharo), in order to protect 3,269.29 hectares
Main Activities for Biodiversity Conservation in Oil Areas
INTERVENED AREA Affectation by PEMEX*
Affectation by OTHERS*
Continuity of the activities
focused on the biodiversity
protection during 2008
Otontepec mountain
range since 1952.
NA
Ecosystem fragmentation, advances in the
agricultural and stockbreeding frontier and
change of use of soil
Program on environmental education and
w etland and jungle recovery in Veracruz
1.20
Pantanos de Centla
since 1952
Hydrology modification through the
ecosystem’s fragmentation channels
Extension of the agricultural and
stockbreeding frontier, w etland burning,
hunting and illegal traffiking of w ild fauna,
untreated sew age
Environmental education actions for Pemex
employees and contractors and their familis;
fire control. Operation and maintenance and
construction financial support for the “Centro
de interpretación la casa del agua”
7.80
Mongrove sw amps
and wetlands of
Tuxpan
since 1963
Change the land use to agricultural and
Dredging activities causing the
blocking of the outlets of Barra Galindo industrial, discharge municipal untreated
and Corazones in the Tampamachoco sew age and dismount
Lagoon, as w ell as affecting the
oyster banks and changes in its
hydrodynamics.
Environmental education activities in order
to contibute to mongrove sw amps and
wetlands conservation
1.21
Environmental education and w etlands
restoration activities
5.06
Currently not operating
PEMEX 2008
• The Lacandon Jungle project with Natura y Ecosistemas
Mexicanos A. C., aimed at describing the current
vegetation. The change of use of soil in the last seven
years caused the lost of 30% of the original vegetation.
This study made possible the definition of priority areas
for conservation, restoration and establishment of
biological corridors in order to contribute to the conservation
of the 415 thousand hectares of Montes Azules and
Lacantún
Wetlands of Alvarado Construction activities causing the
since 1970
blocking of the outlets of Laguna
la Mancha in the Alvarado region,
affecting significant areas of swamps
and wetlands.
* Not necessarily during 2008
** During 2007 (MM$) applied in the 2007-2008 period
Extension of the agricultural and
stockbreeding frontier, non-sustainable use
of the mangrove sw amp and municipal
untreated sew age
PEMEX
investment**
Conservation measures for wetlands in Alvarado, Veracruz
The lack of pasture during drought periods forces the cattle to look for food in areas other than those designated for cattle farming, in such a way that
the mangrove swamps of the lowlands have been invaded and transformed into pastures. This transformation of the ecosystem has contributed to the
reduction of the manatee population to a few hundred manatees in Alvarado’s wetlands. Currently, this specie is classified as endangered specie by the
SEMARNAT.
As a support to revert the environmental degradation of this ecosystem, PEMEX has participated in the Program for environmental education and
wetland recovery in Veracruz. In this program, the company is in charge of the Fund for Communication and Environmental Education and it has
contributed to the reforestation of 61.4 hectares by planting 51,655 mangroves, and 154,500 jungle plants in other 244 hectares. Likewise, it
is expected to continue contributing by reforesting 300 additional hectares with the support of the stockbreeding community under a voluntary
participation program. The vegetable species were obtained from 585,425 plants grown in two nurseries built with 54 members of a cooperative
committed to change the stockbreeding soil.
Furthermore, environmental related activities and workshops were carried out in five different schools as regards matters such as wetland restoration.
Three hectares were reforested with the participation of 150 children from Alvarado and Tlacotalpan within the Wetland Festival.
At the beginning of the current decade, PEMEX-Petrochemicals developed, in collaboration with the Universidad Nacional Autónoma de México (UNAM,
Spanish acronym), the project of “Jaguaroundi conservation, reforestation, capture of carbon and ecological park” in the municipality of Coatzacoalcos,
Veracruz. The UNAM’s scientific participation, with six of its institutes coordinated by the Environmental University Program has been fundamental for
the identification of the biodiversity found at the landed property of 960 hectares. In 2002, the collaboration work of both institutions achieved the first
certification from the National Commission of Protected Natural Areas (CONANP, Spanish acronym), acknowledging this park as the first private reserve
designated for biodiversity conservation. Jaguaroundi has an interesting biodiversity were we can find 21 protected species and eight threatened
species, three of which are deemed endangered species.
Protected
ESPECIALLY
PROTECTED
Flora*
316
Insects
134
Amphibians
17
4
Reptiles
24
6
Fish
0
Birds
117
10
Mammals
29
1
TOTAL
637
21
*It is believed that collection of these species represents only 40% of the park’s total flora
Threatened with
extinction
In danger of
extinction
3
2
1
6
1
2
3
In 2008, in collaboration with the PUMA of the UNAM, the SEMARNAT and the INE, PEMEX coordinated and completed the publication of “Jaguaroundi
Ecological Park. Conservation of the tropical jungle of Veracruz in an industrialized area”. This publication consists on a descriptive study of the territory
and the fauna and flora protected by PEMEX.
A bidding process took place for the construction of the necessary infrastructure to facilitate the reception of visitors of the “Jaguaroundi Ecological
Park”, planned for 2009. This included the park’s design through the combination of activities related to conservation, research, recreation and
environmental education.
77
Species
NOM-059-ECOL-2001
JAGUAROUNDI
GRI EN23, EN29, EN13, EN26
Environmental Impacts of
Leaks and Spills
Remediation of
Environmental Liabilities
Environmental impacts caused by fuel leaks and spills
may occur during fuel extraction, transformation and
transportation. Therefore, PEMEX has implemented safety
processes and procedures in order to safeguard the
resource being handled as well as the social and natural
environment. Nevertheless, acts of vandalism and
meteorological phenomena cause incidental leaks and
spills having, in turn, an impact on the biodiversity, soil
and water bodies. For these cases, PEMEX carries out
immediate actions to reduce the impacts.
The inventory of affected areas at the end of 2008 registered
before the Securities and Exchange Commission (SEC)
increased to 465 hectares, of which 71% of the liabilities
is associated to PEMEX-Refining, highlighting the
Refinery in Minatitlan, the Santa Alejandrina marsh and
the former 18 de Marzo Refinery. PEMEX-Exploration and
Production concentrates its environmental liabilities in
the Northern Region with 24% of the total liabilities. The
remaining 5% is located in PEMEX-Gas and Basic
Petrochemicals and PEMEX-Petrochemicals’ process
facilities.
The result of the spills registered in 2008 is of 13,899
barrels, of which 8,745 barrels (63%) relate to pipelines
systems, mainly in PEMEX Refining; and 5,154 barrels
(37%) to facilities other than pipelines (refineries,
terminals, auto tanks, etc.)
07
A great majority of the events caused in pipeline
transportation systems are directly related to third party
damage (clandestine acts and vandalism).
The statistics of spills in PEMEX’s pipeline systems
(2005-2008), decreased 39% which means that, taking
into account the four previous years, 2008 presented the
lowest number of events (329 events). This decrease is
due mainly to the results of the application of strategies
focused on improving the operational integrity and
reliability in systems and equipment since 2005.
Though there has been progress on the aforementioned
matters, it is necessary to mention that a relevant event,
because of its business impact, occurred on July 16,
2008 in the Gas pipeline of 30”Ø N. Teapa- Venta de Carpio,
near the town of El Calvario, Municipality of Tepetlaoxtoc,
State of Mexico. The volume spilled amounted to 4,104
barrels of Istmo crude. In response to the emergency there
was a recovery of 3,677 barrels with a minimum area
affected of approximately 500 squaremeters among
urban and cultivated area.
“18 de Marzo” former refinery
For the construction of the Bicentenario Park, PEMEXRefining works on the remediation of 55 hectares in the
north area of the former Refinery “Azcapotzalco”. This
construction was divided into two stages.
In the first stage, in an area of 22 hectares, the remediation
program was concluded in September 2008. The remediation
techniques used were the following:
• Vapor extraction
• Bioventing
• Bioremediation
For the second stage, in an area of 33 hectares, the
remediation program began in October 2008, and it is
planned to be concluded in December 2009.
The pollutants on the second stage are very similar to
those of the first stage, therefore the remediation
techniques are the same, adding only the air bubbling
technique on the saturated area.
Restoration of the Low Basin of the Coatzacoalcos River
PEMEX continues participating in the Restoration Program of the low basin of the Coatzacoalcos River coordinated by the SEMARNAT. The project
includes an area of 2,786.759 square kilometers of seven municipalities in the south of the State of Veracruz. At the end of 2007 the reference terms
of the Strategic Plan were settled for the works that will be done. It is important to mention that the diagnosis will be made in 2009.
Relevant Accidental Spills and Leaks in 2008
PEMEXEXPLORAtioN and
PRODUCtioN
PEMEX-GAS
and Basic
Petrochemicals
PEMEXRefining
PEMEXPetrochemicals
TOTAL
Spills (liquids)
Registered number
152
-
75
-
227
2,008
-
11,891
-
13,899
280
-
1,644
-
1,924
65
16
20
1
102
8
70
1
2
81
Registered number
217
16
95
1
329
Estimated released amount (tons)
288
70
1,645
2
2,005
14
-
657
-
671
Estimated spilled volume (barrels)
PEMEX 2008
78
Estimated spilled amount (tons)
Leaks (gas)
Registered number
Estimated leaked amount (tons)
Total (Spills + Leaks)
Estimated recovered amount (tons)
Remediation of the Environmental Liability in Texistepec
Texistepec is a municipality located in the south of the State of Veracruz where the Istmo Exploring Company (CEDI, Spanish acronym) operated. CEDI is
a company that exploits natural sulfur from the subsoil and operated from 1960 to 1993 until it became part of the PGPB after the sulfur market crisis.
With the liquidation of the CEDI in 1994, PEMEX acquired the assets and liabilities, and also the degraded environmental assets. The drill of a landed
property of 2,900 hectares left millions of square meters of waste, for which PGPB implemented in 2001 a project of Environmental Remediation in
order to thwart the environmental impact in 1,400 of its hectares.
REMEDIATION ACTIVITIES BY PEMEX
PEMEX STATUS (%)
525,000 cubic meters of solid waste
Construction of the Waste Stabilization Cell
100
11 million cubic meters of acid
wastewater in dams
1. Beginning of acid water neutralization tests
2. Massive neutralization of acid water in dams with 3,865 tons of magnesium oxide
100
230,000 cubic meters of weathered
hydrocarbons in 43 natural depresions (“chapopoteras”) and dam beds
(200,000 cubic meters)
1. Strengthen dam levees and delimit the “chapopoteras”
2. Collect and dispose of hydrocarbons in the “chapopoteras”
3. Collection and disposal of supernatant and dambed hydrocarbons
100
4
6
2,800 sulfur wells with a 200
to 600 meters depth
Coverage, blockage and sealing of wells
7
30 km of communication routes
with solid waste
Roadway normalizations
4
Damaged facilities
Collection of scrap and garbage, and structure demolitions
These measures were associated to actions involving the community into the process of remediation. Job sources were generated, thus creating
positive social and economic impacts. The project achievements and success show the feasibility of an environmental management related to the
company’s social responsibility, because it has managed to restore ecosystems in dams in order to reincorporate species that belong to the region such
as the crocodile and the alligator gar.
79
ENVIRONMENTAL LIABILITIES
ENVIRONMENTAL PERFORMANCE
Environmental Performance Strategy: Implementation
Atmospheric Emissions
Management of Water Resources
Waste Management
PEMEX 2008
80
08
Desempeño ambiental
Environmental
Performance
ASPIRATION:
CONSOLIDATE THE ENVIRONMENTAL STRATEGY AS FACILITATOR OF
THE COMPANY’S BUSINESS STRATEGY, THROUGH ITS THREE ACTION
AXES: CAPTURE OF OPERATIONAL OPPORTUNITIES, COMMUNITY
ENVIRONMENTAL RESPONSIBILITY AND INVESTMENT SUSTAINABILITY.
Carlos de Régules
Environmental Protection Manager
Corporate Operations Office
For PEMEX, 2008 was a year of mixed results regarding
environmental performance. A historical improvement
in the refineries emissions in critical zones as the
city of Salamanca was achieved, but the increase of
the emissions caused by the gas burning in off-shore
operations raised the net balance of air emissions,
including the greenhouse effect gases. As regards
dangerous waste, the results were the best: throughout
the year 2008, a runoff discharge rate of 21% higher than
the generation pace was reached, as a result of which
the inventory at the end of 2008 was 27.1% lower than
at the beginning. Our water performance in question
was relatively maintained still: The use of fresh water
increased marginally 3.2%, while the total pollutants
quantity in our water discharges was reduced 8.4%.
PEMEX wants to improve on these subjects,
understanding that the challenges of the Sustainable
Development are the business challenges from the
triple environmental, social and economic perspective.
Indeed, the company has a series of operative, financial
and executable challenges, and each of them includes
an environmental and social content to be efficiently
resolved. Under these terms, I would say that it is not
merely about having an environmental strategy, but it is
about counting with an axis that activates the business
strategy as regards environmental matters. In order to
encourage the business challenges such as increasing
the reserves recovery rate, maintaining our production
platform, extending our refining capacity, improving
the quality of our products, optimizing our distribution
network and making the conversion process more
efficient, it is necessary to understand and manage much
more complex environmental and social challenges that
we used to some time ago.
We are aware that we are working against the clock
to mature this new perspective in all the company’s
decision-making areas, as regards current needs of
improvement, and the requirement of investment to
achieve the goals of the measures we should take.
In order to boost all this, we have maintained the
course of action of the strategy published in the 2007
Sustainable Development report. We have also started
the implementation of the environmental management
system focusing our efforts on the control and
improvement of those facilities of the company with
higher environmental impact. At the same time, with
the sight set on a farther future, we have focused on
management tools that accelerate the introduction of
the environmental factor in the decision-making process.
Tools that allow assessing from the first moment the
costs arising from environmental impacts inherent to
a project and thus, having the possibility to assess the
profitability of the mitigation measures. The guidelines
for the introduction of environmental external factors
in projects will be listed in 2009, and it will be the key
leverage of the preventive approach of the environmental
management of PEMEX in the future time.
In the institutional environment, 2008 was also a year of
very important changes. The House of Representatives
passed the Energy Reform and granted us a very clear
power regarding Sustainable Development: guarantee
the oil development sustainability and the energy offer
sustainability. At this point, the Reform is targeted
to a transition towards an energy model with more
participation in special renewable energies, and towards
the systematic reduction of the environmental print of
our fuels in general.
In this way, the company’s environmental protection
has to be strengthened under the light of these new
challenges. We have to develop competencies and skills
related to the new subjects arising from the Reform. The
environment changed, and we have to adapt to it.
When we talk about the environment in PEMEX, we do not
think about it as a complementary or additional matter.
Oil workers are aware of its importance, not only as a
regulatory demand, but also as a key element in the
future viability of the oil business.
FACTS
CHALLENGES
• 66.5% increase on SOx emissions
• 1.9% reduction on sulfur recovery efficiency in refineries
• 71.4% reduction on the amount of days in which the value
established by the SO2, regulation in Salamanca was exceeded
• *21.0% rate of waste availability
• 24% of energy valorization of drilling cuts
•Incineration, by third parties, of 31.8% of the historic inventory
considered on services contracting of heavy hydrocarbons
•Valorization of 2,567 tons of used catalyzers, with an income for
the company of 44.1 MM$
• 3.2% increase in the use of fresh water
• 8.2% decrease in total water pollutants
• 33.4% of the facilities have valid clean industry certifications
•Conclude the infrastructure for the re-injection of gas in off-shore coast
•Conclude the rehabilitation, optimization and maintenance work in sulfur recovery
plants of the Salamanca and Salina Cruz refineries
• Standardize improvements in waste processes
•Elaborate handling plans of used soda, drilling cuts, organochlorated compounds,
oil mud, used oils, used catalyzer and infectious biological hazardous waste, in
accordance with the Institutional Program for Integrated Waste Management (PIMIR,
Spanish acronym)
•Begin the operation of the treatment plant for sewage water in the refinery in Madero
•Conclude the diagnosis of efficient water use in critical facilities
•Extend the implementation of the environmental management system to Work Centers
with the most significant environmental aspects
•Elaborate guidelines of environmental external factors for investment projects
*(((Initial waste inventory + Waste generation– Final waste inventory)/ Waste
generation) – 1)*100
GRI 4.11, management approach, 4.9, 4.10,
2.10, EN18
Strategy: Implementation
A year after the implementation of the Environmental
Protection Strategy 2007-2012, the work on each of the
lines of action comprising its main axes has been
intensified, as it can be observed below:
AXIS 1. Capture of operational opportunities
OBJECTIVE: To regulate compliance and environmental
risks elimination through projects related to emissions to
air, fuel quality, energy efficiency, cogeneration, GHG
mitigation, efficient use of water and environmental
liabilities reduction.
ADVANCES: Projects for 7.46 billion dollars to reduce by
36.9% the sulfur monoxide in respect to the trend scenario.
Projects for 3.759 billion dollars to reduce by 20.5% the
carbon monoxide in respect to the trend scenario.
Waste Management
Projects for 232 million dollars to reduce by 14.5% the
fresh water consumption in respect to the trend scenario.
08
Projects for 216 million dollars to reduce by 56.6% the
environmental liabilities in respect to the trend scenario.
AXIS 2. Sustainability of investments
OBJECTIVE: To improve the social-environmental
feasibility to facilitate the development of the oil sector
through the incorporation of external factors within the
investments planning and assessment process, the
adoption of necessary standards to guarantee access to
financial markets, as well as the design of specific
Sustainable Development strategies for large oil projects.
ADVANCES: To design the jobs for the elaboration of useful
application guides for main projects, as well as training
for investment work teams.
Sustainable Development Strategy of the Gulf Tertiary Oil
Project.
AXIS 3. Community environmental responsibility
OBJECTIVE: To reduce the dependence relationship on the
company’s activities when establishing links of
coresponsibility with local actors, thus fostering the
participation process of ecological land management, as
well as conservation and compensation initiatives that
allow the oil basin natural capital to be sustainably
maintained and used by its owners.
ADVANCES: To broaden the conservation program of the
Lacandon Jungle with Natura Mexicana, A.C. In December
2008, 7.665 MM$ were given to the Biosphere Reserve
Pantanos de Centla to maintain the continuity of the Project.
In collaboration with the NGO Espacios Naturales y
Desarrollo Sustentable A.C., 7.82 MM$ were given in
December 2007 to be used during 2008 and 2009.
In December 2007 7.487 MM$ were given to the Fund for
environmental communication and education to be used
in 2008 and a part of 2009 for the restoration of the
Alvarado’s mangrove swamps and for the environmental
education campaign in the Otontepec mountain range.
Design of the plant protection project in natural
protected areas.
PEMEX participates in the Ecological Land Management
(OET, Spanish acronym) of the Gulf of Mexico and the
Caribbean Sea, Tuxpan river basin, as well as in the
General land management and the Tabasco and North of
Chiapas management. The OET of the Burgos basin was
concluded in December 2008 and its activities are being
followed up on.
For the 2007-2012 period, this strategy includes projects
that will enable a reduction in 2012 of 59.4% of the sulfur
monoxide emissions, 20.5% of the CO2 emissions, 14.5%
of the fresh water consumption and 56.6% of the historic
environmental liabilities. This chapter describes the most
important actions and results in 2008.
Testimonial by Enrique Kato Miranda
Director General of the Ecology Institute of Guanajuato
Salamanca has now a better quality in the air. On February 16, 2009 the results report of the Program to Improve the Air Quality in Salamanca, Proaire
2007-2012, was published. This report emphasizes that the sulfur monoxide (SO2) is no longer the main pollutant in Salamanca.
In a wide exercise of consent of wills and agreements achieved after several months of work sessions, in July 2008, before the President Felipe Calderón
Hinojosa as witness of honor, the agreement was signed by the governor of the State of Guanajuato, Juan Manuel Oliva Ramírez, the secretaries of the
SEMARNAT and the SENER, the corporate directors of PEMEX-Gas and Basic Petrochemicals and PEMEX-Refining, the CFE, the Federal Commission for
Protection against Health Risks and the mayor of the Municipality of Salamanca.
To improve the air’s quality has been a strong demand of the population of Salamanca for years, and it became a commitment in the campaign of those
occupying the Presidency of the Republic and the government of the State of Guanajuato. Taking as basis the inventory of emissions and the registry of
out-of-regulation days in 2006 in Salamanca, at the end of 2008 the following progress was registered: out of 67 out-of regulation days in 2006, during
2008 only 20 days were registered and only two were caused by SO2. As regards the annual average of said pollutant, we achieved a historic number in
Salamanca, since for the first time the three fixed automatic monitoring stations registered values that were beneath what has been established by the
Mexican Official Regulation for sulfur dioxide.
PEMEX 2008
82
Salamanca has a system of response to pre-contingencies and contingencies for bad quality in air. In addition, regarding the indicators, we obtained
positive results: out of 29 contingencies registered in 2006, at the end of 2008, only five were registered and only one was due to SO2 and occurred
in March 2008. This information means that at the end of that same year, we achieved a record of nine months without precontingencies nor out-of
regulation days because of SO2 .
The latter was achieved thanks to the precise fulfillment of commitments assumed by the decentralized government agencies PEMEX and CFE. We may
highlight the investment made specifically by PEMEX in sulfur recovery plants, as well as the supply guarantee of 70 MMpcd of natural gas to the CFE,
widen to maximum 100 MMpcd at the end of 2008.
The assessment of these figures was carried out by a coordinating and follow-up group conformed by all interested parties as well as their social
representatives. This committee was created in September 2008 and proceeded to create eight work groups for the different aspects contemplated in
the 2007-2012 Proaire Salamanca program. After a large number of work sessions, they created the indicators, gathered information from each part and
approved the first results report in February 2009.
The results obtained probably place the program Proaire Salamanca as the most successful in the country and the only one of its kind among the cities in
the country with a refinery. These results show that the dream of a clean Salamanca is possible in complete coexistence with the refinery and allows us
making an acknowledgment of PEMEX’s effort in favor of Guanajuato.
VALID CERTIFICATIONS
PEMEX got 142 certifications of Clean Industry by
complying with the environmental regulation and the
application of better environmental practices. Out of the
total amount of certifications granted by the PROFEPA, 39
were given to facilities that for the first time concluded
the environmental auditing process and 103 correspond
to ratifications for facilities that showed that their
environmental performance is in compliance with the
regulations on this matter.
Since the beginning of the National Program of
Environmental Auditing (PNAA, Spanish acronym), the
company has voluntarily incorporated its facilities in
order to obtain a total of 754 certifications, which allowed
obtaining 458 certifications since the beginning of the
program. Currently, it has 252 valid certifications, 206
are in re-certification process and 296 are in certification
SUBSIDIARIES
CLEAN INDUSTRY CERTIFICATIONS
process. PEMEX will continue incorporating a greater
number of new facilities to this program as a result of its
expansion activities in exploration, exploitation, refining
and hydrocarbons distribution areas.
PEMEX has maintained the incorporation of the best
practices and the standardization of its processes in
compliance with the world’s standards in occupational
quality, environmental management, hygiene and health
related matters for its industrial land facilities. Regarding
port and sea facilities and its vessels, the company has
maintained certifications in the Safety Code of Vessels
and Port Facilities Protection and the International Code
of Maritime Safety.
At the end of 2008, regarding certifications obtained and
maintained, the results were as follows:
ISO 9001
ISO 14001
OSHA S 18001
ISM
PBIP
CERTIFICATIONS
177
13
2
2
-
2
PEMEX - Refining
PEMEX - Exploration and Production
46
7
9
-
1
34
PEMEX - Gas and Basic
Petrochemicals
27
2 certifications on integral systems,
1 ISO 900 and ISO 14001 multi-site
and 3 ISOS 9001.
-
-
PEMEX - Petrochemicals
2
-
-
1
1
-
Project of O2 Enrichment and NH3 Production
In 2008 PEMEX-Petrochemicals, in collaboration with the IPN, developed an analysis Project for a “Cleaner production and energy efficiency in the
Morelos Petrochemical Complex”. This project’s environmental benefits are aimed at reducing CO2 emissions, water consumption and the generation of
hazardous wastes. As a result of these efforts, the following opportunities were identified:
OBJECTIVE
ACTIONS
To reduce fuel consumption in pyrolysis
furnaces and boilers.
To decrease the energy waste due to N2 heating,
as well as reduce air infiltrations in furnace with
precise maintenance measures.
Enrichment of combustion air from 21% to 35%
through the injection of pure O2 into burners.
To reuse treated water (with high conductivity) of the effluent treatment plant
as refilling water for the ethylene oxide
cooling tower.
To reduce by 8% the current water consumption
of 1.46 millions m3/year, equivalent to one month
of consumption at the CPQ Morelos.
Redistribution of waste currents of UDAS, of ethylene oxide and rusty used soda, of ethylene quench
to the wastewater current of the CPQ Pajaritos.
To change the acquisition system of oils,
lubricants, catalyzers and other materials
acquired in containers that instead of
being emptied, are transformed into
hazardous waste.
This measure avoids the purchase of containers
from suppliers, thus focusing the amount only
on the products and avoiding the generation and
confinement of 23 t/year of these recipients.
Delivery of empty containers to suppliers for its
recycling under a returnable system.
To change the disposal system of used
batteries.
Valorization of 15 t/year of hazardous waste.
Recycling actions for used batteries in service lifts
and other equipment, with an authorized recycling
company.
Among other activities, there has been a follow-up of other recommendations such as the discharge of the neutralized water of regeneration from the
UDAS of the ethylene oxide plant to the west pluvial drainage, use of rain water from the pluvial drainage, the reduction of water consumption in sanitation,
regeneration of used accumulators, application of thermal isolation with technology change, increase of the heat transference area in pyrolysis tubes and
redistribution of thermal charge in pyrolysis furnaces.
83
OPPORTUNITY
GRI EN20, EN8, EN10, EN9
Ever since 1994, the Council of the Commission for
Environmental Cooperation (CEC) integrated by ministers
of the environment from Canada, the United States and
Mexico has boosted the comparison of information from
atmospheric emissions inventories in North America. At
the end of 2007, it published the National Inventory of
Emissions in Mexico (INEM, Spanish acronym), which
contains detailed information of atmospheric emissions
from all the Mexican states, such as nitrogen oxides,
sulfur oxides, volatile organic compounds, carbon
monoxide, ammonia and particles. PEMEX, with the idea
of contributing to national and international efforts to
protect the environment, continues quantifying the
emissions generated by its productive processes. Among
these emissions, it is possible to identify mainly NOx,
SOx, as well as VOC and solid particles.
ANNUAL EMISSIONS, Metric Tons
Waste Management
Emissions
PEMEX 2008
84
08
2005
2006
2007
2008
SO2
516,976
512,145
568,202
946,156
NOx
91,292
94,023
109,196
108,718
VOCs
55,109
49,180
46,959
50,422
PST
19,346
19,827
19,958
19,485
Total
682,723
675,175
744,316
1,124,782
Note: The VOC and TOC emissions data are outside the scope of
the verifying process.
Atmospheric emissions are estimated according to the
AP-42 factors of the United States Environmental
Protection Agency (USEPA). These emissions are
controlled and monitored based on the scope and
frequency established within the regulations. Between
2007 and 2008 there was an increase of 53.0% in the
emission of atmospheric pollutants.
SOx (%)
SOURCE OF SO2 AND NOx EMISSIONS
During 2008, SO2 emissions accounted for 84.1% of the
total emissions, and NOx emissions accounted for 9.7% of
the total emissions to the atmosphere. Both pollutants
are produced because of the following:
• PEMEX-Exploration and Production: SOx emissions
increased by 163.7% due to release of sour gas with
high nitrogen content, maintenance of compression
equipment, and unscheduled shut downs. The larger
volume of NOx emissions was due to production and
maintenance operations on wells and increased
offshore releases
• PEMEX-Refining: The slight increase of SO2 and NOx was
caused mainly by the maintenance of the sulfur
recovery plants as the NOM-148 came into force in the
Refineries of Cadereyta, Madero, Salamanca and Tula
ACTIONS TO REDUCE SO2 AND NOx EMISSIONS
The NOM-148-SEMARNAT-2006 came into force as of
March 2008 and concerns the recovery of sulfur from oil
refining processes. This regulation sets the minimum
limit of 90% for the recovery of sulfur in the Refineries in
Cadereyta, Cd. Madero, Tula and Salamanca and in Refineries
in Salina Cruz and Minatitlán for 2010. Compliance with this
regulation will reduce SO2 emissions in refining
processes by 30%.
At the end of the year, the refineries fulfilled the sulfur
recovery established by the NOM-148 and they continue
working on the projects to use waste gas sent to burners
and to operate tail gas treatment units. There was also an
acquisition of two new sulfur recovery plants in the
refineries of Minatitlán and Salamanca.
NOx (%)
64.7
31.6
3.6
0.1
PEP
PREF
PGPB
PPQ
55.0
28.7
9.0
7.3
PEP
PREF
PGPB
PPQ
Water Resources Management
WATER CONSUMPTION BY SOURCE
Fresh water consumption increased by 3.2% as compared
to the previous year, from 182.2 MM cubic meters to
188.0 MM cubic meters. This is due to a larger use of
surface water, mainly in PEMEX-Petrochemicals
because of an increase in production. Nevertheless,
water treated for re-use increased for the fourth
consecutive year by reaching a volume equal to 15.7%
of its total consumption.
RECYCLING WATER USED IN PROCESSES
Over the last eight years, PEMEX has invested in projects
to improve the quality of treated water and to increase
the use of recycled water. In 2008, PEMEX recycled 8.47
MM cubic meters of water used in its operations.
Almost all the refineries have recycling methods because
they have wastewater treatment plants that treat water
before discharging it to reception bodies, thus using all
the water that has the necessary quality to be used in
cooling towers and through a subsequent treatment via
ultrafiltration or inverse osmosis to be used in heat
generation. The reduction of recycling processes for said
resource is due mainly to restrictions in the quality of
wastewater supplied to the PTAR of the Tula refinery.
WATER SOURCES AFFECTED BY RECEPTION MEANS
80.5% of the fresh water consumed comes from surface
and underground sources. Its consumption is focused
only on industrial activities.
In November 2008, PEMEX formalized the activities of the
water specialized group. For 2009, it will be necessary to
have a diagnosis of the use of water and existent
technologies for facilities with higher demand. And
consequently, do a strategic planning that will allow
using the highest efficiency level in water use.
WATER CONSUMPTION BY SOURCE
FRESH WATER CONSUMPTION
2005 – 2008
TREATED WATER CONSUMPTION
2005 – 2008
3
2008 DISTRIBUTION OF WATER BY SOURCE
AND SUBSIDIARY ENTITIES (%)
Millions of cubic meters (MMm3)
Millions of cubic meters (MMm )
85
100
80
60
40
20
0
2008
2007
PEP
30.4
PREF
24
20
PPQ
PGPB
2006
140
2008
150
25
2007
30
2006
160
2005
37.4
35
2005 21.9
188
182.2
180
40
185.7
190
190.8
Superficial
Underground
Marine
Potable Water Pipeline
Others
GRI EN21, EN22, EN2, EN24, EN1, EN27
Waste Management
TOTAL DISCHARGE OF WASTEWATER
WASTE MANAGEMENT
The pollutants discharge registered a decrease of 14.54%
of the total volume of pollutants drained into receptor
bodies of water in 2008 as compared to 2007. This
continued the decreasing trend throughout the current
decade. This decrease took place in the main organic
pollutants such as total grease, oil and solids, and thus,
was directly reflected on the 28.2% decrease of the DBO5.
The operation of PEMEX’s activities produces
hazardous, non-hazardous and special handling waste.
TOTAL DISCHARGE OF WASTEWATER
Waste Management
2007
Total volume discharged
(millions of m3)
Total pollutants load
(thousands of tons)
2008
Total volume discharged
(millions of m3)
Total pollutants load
(thousands of tons)
PEP
PREF
PGPB
PPQ
4,910
38,604
12,429
23,517
0.39
1.40
0.37
0.53
7,452
42,142
11,390
22,661
0.26
1.29
0.37
0.59
The hazardous waste generated in a greater volume
consists on oils mud, heavy chlorine hydrocarbon and
used sodas. This waste represents 69.8% of the total
hazardous waste generated by the oil industry.
The special handling wastes generated in a higher
volume are drilling cuts produced by exploration and
drilling activities and used oils. Drilling cuts represent
the higher volume of special handling waste
generation in the entire oil industry.
Pollutants increased in comparison to 2007, mainly due
to the siltation of the effluents system in the CPG Nuevo
Pemex and due to problems with the handling of carried
on waters in the Marina Dos Bocas Terminal, in Tabasco.
The positive results of the pollutant content of water
waste discharges are due mostly to the improvement of
the effluents water treatment, and this improvement is,
in turn, due to a soda decrease in the refineries’ draining
systems after setting it under a co-processing scheme
under contract for the period of 2008-2009.
08
Substitution of Chlorine Biocide for Chlorine Dioxide
POLLUTANT
COMPOSITIONS (t)
2008
2007
2006
As a result of the study carried out in April 2007 to the Petrochemical Complex of Cosoleacaque by Granherme (Ammonia Plant Risk Assessment), it
was recommended to eliminate the handling, storage and use of chlorine anhydride in cylinders because of the risks involved. Among the profitable
solution alternatives it was determined that the chlorine dioxide was adequate for:
• Containing a high reactivity as oxidant and disinfectant, almost three times more reactive than the chlorine
• Not reacting with ammonia, which inhibits the formation of chloramines
• Having high effectiveness in a wide range of pH (4 to 10)
• Not storing, since it is produced at the time of dosing
2,000
1,500
Its successful application to the T-7 cooling tower, which serves the ammonia plant, enabled the following benefits in 2008:
1,000
• Significant saving in water consumption, enabling high concentration cycles in the cooling tower
• Reduction of backward washing of heat exchanger equipment with water and chemicals saving
• In a medium term, it estimates the extension of the equipment’s useful life
• Reduction of total costs because, when comparing to an identical tower, T-6, this distributed 11 MM$ against 10.55 MM$ of the T-7 in 2008
• Greater ammonia production (40 t/day) as a consequence of higher operational continuity
500
0
Oil and
Grease
Total
Suspended Solids
Total
Nitrogen
These kinds of actions not only increase the profitability of PEMEX’s facilities, but also achieve additional benefits such as environmental impact
reduction, less use of natural resources and higher security level.
GENERATED WASTE
The total amount of hazardous waste was sent to a
specialized treatment provided by companies authorized
by the SEMARNAT for this purpose. 11 Mt of heavy chlorine
hydrocarbons that were stored and generated by the
production activities of the Plant Clorados III in the CPG
Pajaritos were set for incineration starting in October 2008.
This incineration will be concluded in October 2009.
Generated Waste (%)
Hazardous
Non Hazardous
PEP
12.13
96.22
PPQ
26.58
3.19
PGPB
3.21
0.01
PREF
58.08
0.58
100
100
total
WASTE TRANSPORTATION
In compliance with the applicable regulation, and as part
of its responsibility, PEMEX has a systematic control on
the waste transported inside and outside of its facilities.
WASTE TRANSPORTED (t)
Imported
Exported
2005
0.00
230
Internally transported
59,017
59,247
Total
2006
0.00
3,209
92,119
95,328
2007
0.00
5,520
62,824
68,344
2008
0.00
3,494*
42,364
45,858
Main means of transportation
Ship and
land transportation
* During 2008 3,494 t of heavy chlorine hydrocarbons were exported, still 7,506 t will be exported from a total amount of 11,000 t
generated before 2008. In 2008, 17,901 t were generated and they will be subsequently available.
Valorization of Used Catalyzers, Oils and Solvents
In 2008, the SEMARNAT authorized PEMEX-Refining and PEMEX-Petrochemicals to register the plan of used catalyzer, oils and solvents,
respectively, for these to be valorized in order to extend their useful life.
Through the implementation of this plan, in 2008, PEMEX-Petrochemicals managed to use as an alternative fuel 18 MT of used oil and solvents
generated by the Petrochemical complexes in vapor generators in the Cangrejera, Morelos, Pajaritos and Independencia Complexes. The
saving of fuel gas amounted to 18,899 square meters and US$ 5.2 MM a year. As there is an available capacity, it is planned to serve other
Subsidiaries of Petróleos Mexicanos and even private companies, which opens the possibility of a new business line for the company.
87
The successful operation of PEMEX-Refining’s used catalyzer handling plan enabled the transference of 2,566.9 t of used catalyzer with Ni, Va,
Mo content, coming from the H-Oil process of the Salamanca Refinery, which represents an income for the Subsidiary of 44 MM$. This handling
plan will allow valorizing this waste through the recovery of metals containing vanadium, molybdenum and nickel for their corresponding recycle.
Community Development in PEMEX
Management Model
2008 Actions for Community Development Instruments
Transparency Guarantee
PEMEX 2008
88
09
Commitment to the Oil-Producing
ASPIRATION:
Gain recognition in the communities where the company
operates due to its capacity to harmonize operation and
welfare for the current and future generations, under a
comprehensive policy of social responsibility.
Carlos A. Rábago Saldívar
Regional Liaison Coordinator
General Director’s Office
The commitment to the oil communities’ development
is a priority for the company. Articulating this situation
efficiently and in an open manner is a constant challenge
for PEMEX.
The principal operations carried out by PEMEX
concentrate in four States. It is in these entities where
PEMEX manages 80% of its corporate efforts as regards
community development. During 2007, the company
made an effort to unify and provide higher transparency
to the grants and donations allocation instruments,
trying to increase the positive impact of the company’s
contributions to oil communities and improve the
accountability to citizens. During 2008, the application
of these criteria has already reaped the first fruits being
able to avoid the difficulties found and the cultural
resistance presented in all these types of changes.
The clear framework of corporate activities has allowed us
to step towards the coordination and alignment of other
instruments operated by the Subsidiaries – such as the
mutual benefit works – and which complete and reinforce
the commitment of the company in oil communities.
This is not a simple work. Many times, the contributions
of the company in this field are not well understood. We
try to clarify the application criteria efficiently, stating
the goal that we pursue, so as to carry out a transparent
management. We also seek to fight against the claiming
industry that has proliferated in some places. All of these
are daily priorities of our teams.
During 2009, PEMEX’s works on these matters will
be under the coordination of internal structures and
our workers will be more involved in order to deal with
the problems of the communities where they develop
their activities. We will try to anticipate the problems,
identifying the social and environmental dilemmas
that appear in the decisions that are to be taken during
the programming of the new developments that the
country and the company need, definitely boosting
the community development and the environmental
protection, with a medium and long-term vision.
With the Reform, the door is open to have new
instruments and mechanisms that strengthen the
transparency and accountability. This means new
possibilities for more coordination and alignment
of the company’s efforts and faster development of
actions, that allow us continue collaborating with local
governments more efficiently for the development of
oil-producing regions. PEMEX now has new opportunities
to work in coordination with other institutions and
companies in the constant pursue of being a recognized
company in the communities where it operates due to its
capacity to harmonize the operation and welfare for the
current and future generations, under a comprehensive
policy of Social Responsibility.
Communities
Facts
Challenges
•Begin developing multi-institutional projects with a multi-annual vision
•Execute medium and long-term collaboration programs between State governments
and PEMEX
•Create the Inter-subsidiaries Work Team for community development
•Design and implement the “Social Development” section on PEMEX’s Website
•Develop indicators that enable the measurement of PEMEX’s investments impact in
communities
•Balance the sustainable and environment protection community development with
urban development within the area
• Gradually incorporate indigenous communities from oil-producing areas to sustainable
community development
•Involve the employee in ethic values of commitment to the community and the
environment
GRI Management Approach,
EC8, 4.12
Community Development
in PEMEX
The community development in PEMEX involves several
tools that foster the Sustainable Development of the
communities in which it operates. PEMEX considers that
the involvement of citizens and local and federal
authorities is essential to boost community development
from social, environmental and economic perspectives.
Management Model
Petróleos Mexicanos and its Subsidiaries carry out
community development and environmental protection
actions through various instruments. These actions are
performed in a permanent manner in order to maintain
and strengthen bonds with the authorities and
communities in States and Municipalities, especially in
those with a significant presence of the State’s oil
industry. Consequently, PEMEX has several instruments
such as:
09
• Mutual benefit works
• Grants3 and Donations4
• Granting of goods and chattel
• Suppliers’ development
• Agreements with institutions of higher education
• Environmental protection
• Investment and job encouragement
Through these instruments, PEMEX makes an effort to
strengthen bonds with the authorities and to establish a
productive relationship that will enable the development
of its activities.
3
Grants are the free transmitted goods and chattel regulated by the fifth
article of the General Act of National Goods that are no longer useful for
Petróleos Mexicanos and its Subsidiaries, as well as some products
elaborated by the Subsidiaries.
4
Donations are free help through monetary resources given to business or
companies that comply with the regulations established in the Federal Act
of Budget and Treasury Responsibility.
COMMUNITY DEVELOPMENT STRATEGY
COMMUNITY
NEEDS
PEMEX 2008
90
LEGAL
FRAMEWORK
INSTRUMENTS
STATES
MUNICIPALITIES
CIVIL ASSOCIATIONS
Framework Agreements
The relationship with the communities is inscribed within
the context of the Framework Agreements that Petróleos
Mexicanos has established with the State authorities of
the federal entities where it develops its most relevant oil
activities: Campeche, Chiapas, Tabasco, Tamaulipas and
Veracruz.
The aforementioned agreements set forth the basis of
collaboration, coordination and communication of PEMEX
and its Subsidiaries with the authorities of States and
Municipalities, in accordance with criteria related to social
responsibility, respect for communities, its activities and
the environment. Within the “Framework Agreements for
an Institutional and Productive Relationship”, it has been
established that Petróleos Mexicanos shares the vision of
economic activity growth in federal entities without
leaving aside its commitment to sustainable
development. Therefore, with this productive relationship,
it chases the consolidation of the necessary conditions to
assure that the oil industry operation is carried out within
a context of complete respect for the environment, as
well as for the communities and its activities.
Said agreements include the commitment of Petróleos
Mexicanos to make an effort to take short, medium and
long-term actions in the following strategic axes: Safety,
including industrial safety and civil protection; Development
of Infrastructure Projects; Environmental Protection and
Ecological Restoration; Social Development; Response to
claims derived from negative effects in oil activities;
Strengthening of the Public Image of the company and its
Subsidiaries and Transparency and Accountability.
Additionally, and in accordance with this social
responsibility policy, the improvement of the relationship
with communities is set as one of the objectives of the
2007-2015 Strategic Program of PEMEX-Exploration and
Production.
Management Model
2008 Actions for Community
Development Instruments
The Social Development Corporate Management analyses
the different requests made by states, municipalities and
civil society organizations based on the guidelines
concerning grants and donations of Petróleos Mexicanos
and other Subsidiaries. It intends to give the presented
projects the strongest social impacts on the population’s
welfare and to comply with several indicators.
Mutual Benefit Works (OBM, Spanish acronym)
We aim to eliminate discretional matters within the
distribution of authorized resources, based on the
aforementioned guidelines and taking into account the
methodology for assignment and distribution of social
support, which includes calculated indicators reflecting
the presence and impact of the oil activity on states and
municipalities.
The Social Development Corporate Management
elaborates the proposal of grants and donations
presented to the Council of Administration of Petróleos
Mexicanos. The priority areas for the Oil Industry are the
states of Campeche, Chiapas, Coahuila, Guanajuato,
Hidalgo, Nuevo León, Oaxaca, Tabasco, Tamaulipas and
Veracruz, were 90% of the budget will be assigned. The
remaining 10% could be assigned to other states and
municipalities, as well as to civil society organizations
which have an impact in high-priority states and
municipalities.
For further information visit
http://www.pemex.com/index.cfm?action=content&secti
onID=113&catID=11000.
The Program of infrastructure works annually executed
by PEMEX-Exploration and Production seeks to improve
the relationship with communities. This program is aimed
at keeping good communication means towards its
facilities. These actions facilitate the access to oil
facilities as well as insist on the improvement of the
regional road and urban infrastructure, thus benefiting
the communities in the region. Therefore, these actions
are known as “mutual benefit works”.
In 2008, PEMEX-Exploration and Production concluded
the execution of 189 mutual benefit works, with a total
investment of 761.96 MM$ in 56 municipalities in the
states of Campeche, Chiapas, Nuevo León, Puebla, San
Luis Potosí, Tabasco, Tamaulipas and Veracruz.
Mutual Benefit Works 2006-2008
STATE
2006
2007
2008
Campeche
Chiapas
Nuevo León
Puebla
San Luis Potosí
Tabasco
Tamaulipas
Veracruz
TOTAL
55.0
118.3
132.4
96.9
15.2
6.6
3.1
70.3
14.5
374.7
713.8
84.9
109.3
27.7
26.4
1.7
116.7
64.6
330.7
761.96
3.8
3.0
131.8
93.2
155.9
561
The main actions consisted of:
• Maintenance and construction of paved and dirt
roads (1,738 km)
• Rehabilitation and construction of vehicle
bridges (240 m)
• Paving and rehabilitation of streets (150 mil m2)
• Construction of pluvial drainage (17,850 m)
PEMEX’s contributions to communities were mainly
related to the fulfillment of the United Nations Millennium
Development Goals (MDG), in which Mexico participates.
What society demands from the companies:
Wealth Creation
Environmental Conservation
Access to Benefits
INTEGRITY
SOCIAL
Economic
PEMEX
91
Environmental
< Commitments >
< Answers
Companies look for the following in communities:
Operational Reliability
Investment Attraction
Legitimacy to Transform
Preference for Professional Development
Community
< Expectations >
Trust >
GRI EC8
Grants and Donations
The priority development sector for Petróleos Mexicanos
and its Subsidiaries’ grants and donations allocation are
those concerning productive and job training projects,
improvement, construction and extension of
infrastructure and rural and urban equipment, projects
and actions on environment preservation and
conservation and on community and oil facilities
protection, and support to the preservation of public
services and actions for the conservation of the national
archeological heritage that has been affected by works
and activities of the oil industry.
Management Model
Petróleos Mexicanos received a total of 950 grants and
donations requests, mainly from state and municipal
governments. From the total amount, the Administration
Council authorized 235 agreements in the amount of
1,901.2 million pesos. Said amount was divided and
91.8% was allocated to federal entities where most of the
oil activity takes place, such as the States of Campeche,
Chiapas, Tabasco, Tamaulipas, Veracruz, Coahuila,
Guanajuato, Hidalgo, Oaxaca and Nuevo León, and the
remaining 8.2% was distributed among the other states,
including support to national projects managed by
non-profitable civil associations. Details of the
distribution of the resources authorized to each State
may be consulted in the web site of Petróleos Mexicanos,
in the “Social Development” section, www.pemex.com.
The outstanding infrastructure works carried out with
support from Petróleos Mexicanos were as follows:
Campeche:The Universidad Tecnológica de Campeche in the
Península de Atasta was provided with electricity, and there
were pavement works and other productive projects carried
out within the riverside and sea fishing sector, both in the
Municipality of Carmen.
Chiapas: Construction of the Regional Hospital in Reforma
which will provide health services and medical specialties to
benefit the Municipality of Reforma and several neighboring
municipalities in the north of the state.
Coahuila: Periodic maintenance of pavement in the
municipalities of Acuña, Frontera, Monclova, Saltillo and San
Juan de Sabinas.
Operation of the amount of vehicles and machinery of the
state administration.
Pavement program in several streets.
Acquisition of folding bleachers for the Gym of the Secondary
School “Ramos Arizpe”.
Hidalgo: End of the rehabilitation work in the state’s highway
Actopan – Tula.
Nuevo León: Reconstruction of the roads that communicate
the States of Nuevo León and Tamaulipas, in the stretch that
goes from the municipalities of China, Nuevo León to
Méndez, Tamaulipas, as well as that of Los Herreras – La
Palmita – Aldabas Station, in the municipalities of Los
Herreras and Los Aldabas.
Oaxaca: Paving of the road stretch of Aguascalientes La
Mata, Municipality of Asunción Ixtaltepec
Extension of the potable water system in the Reforma
district, in the Municipality of Juchitán de Zaragoza.
Rehabilitation of the potable water system in the Agency of
San Antonio Monterrey, in the Municipality of Salina Cruz.
Paving with hydraulic concrete on the streets of
Teniente Azueta, San Pablo Sur district, in the
Municipality of Salina Cruz.
Rehabilitation of the potable water system in the
Municipality of San Blas Atempa.
Rehabilitation of the PTAR, in the Municipality of Asunción
Ixtaltepec.
09
91.8 % of the grants and donations were
allocated to oil-producing areas.
1,901 millions in grants and donations,
11.7% more than in 2007.
761.96 millions in Mutual Benefit Works.
2008 GRANTS AND DONATIONS DISTRIBUTION BY
SOCIAL DEVELOPMENT LINE (%)
Production promotion
Infrastructure
strengthening
Education and culture
Health and social welfare
Leisure and sports
Trade and supply
Communications and
transportation
Housing and services
Environment
Studies, projects and
research
Donations and Grants Distributed by Social Development Item between 2006 and 2008 (Pesos)
ITEM
Production promotion
Infrastructure strengthening
Education and culture
Health and social welfare
Leisure and sports
Trade and supply
Communications and transportation
Housing and services
Environment
Studies, projects and research
TOTAL
2006
%
2007
%
2008
%
86,340,836
793,983,198
80,244,387
36,598,524
14,484,731
62,197,358
492,494,178
50,995,680
14,731,049
5.29
48.65
4.92
2.24
0.89
0.00
3.81
30.18
3.12
0.90
371,184,765
899,334,873
34,060,535
117,931,241
31,821,392
6,000,000
100,408,834
54,343,103
36,754,161
50,220,428
21.81
52.84
2
6.93
1.87
0.35
5.9
3.19
2.16
2.95
75,296,179
1,168,740,326
152,635,686
38,588,785
23,693,505
13,330,000
226,492,035
117,377,649
74,115,422
10,959,000
3.96
61.47
8.03
2.03
1.25
0.70
11.91
6.17
3.90
0.58
1,632,069,941
100
1,702,059,330
100
1,901,228,587
100
Tabasco: Construction of the Potable water plant La Isla II,
which will be located in the Municipality of Centro.
Studies regarding ecological matters and development of
environmental protection and preservation projects.
Ecological and environmental strategies for the elimination
of claims for alleged damages attributed to PEMEX.
Technological strengthening and technical assistance for the
efficient operation of the Environmental Geographic
Information System.
Promotion of an environmental culture in oil-producing
zones.
Productive projects consisting of: investment fund for
sustainable projects, backyard management, integration of
local commercial networks, program of support to fishing
and aquiferous production.
Tamaulipas: Support to the construction of the distributor
roads “Los Encinos” and “Arboledas”, on the Industry Avenue
in the Municipality of Altamira.
Rehabilitation of streets to respond to the situation of the
population affected by extreme rains and atypical floods
occurred from July 4 to 10, 2008.
Pavement with hydraulic concrete of different roads.
Veracruz: Support to the Program of schools reconstruction
and rehabilitation, to schools located in municipality with
presence and influence of the oil industry.
Productive projects that will enable the increase of quality
life levels for the State’s population.
In 2008, there was a strengthening of the Comprehensive
System of Grants and Donations with the incorporation of
modules that enable transparent procedures for granting
social supports and follow-up on the allocation and
verification of grants and donations given. These results can
be consulted in the web site of Petróleos Mexicanos, http://
www.PEMEX.com/index.cfm?action=content&section
ID=113, in order to consolidate mechanisms of openness
and accountability, in compliance with federal government
regulations.
Additionally, and in accordance with federal and local
regulations on this matter, it was established the notifying
procedure for beneficiaries of the approval of the requested
grants and donations. The corresponding legal instruments
were subscribed to formalize the delivery of the authorized
resources, thus establishing the obligations they must
comply as donees, mainly providing evidence supporting the
allocation of said resources. In 2008 more than 220
notifying procedures were carried out and 180 legal
instruments were subscribed.
In order to increase the openness in the application of social
supports granted, it was established that the donees most
open a specific bank account for the management of the
monetary donation and it was determined that the possible
donees most specify the purpose and use of the grant or
donation previously to the authorization.
In accordance with the Energy Reform, it is necessary to
update the regulations established in the aforementioned
guidelines, which will be done during the budgetary exercise
in 2009.
Granting of Goods and Chattel
For the first time, the Goods and Chattel Committees of
Petróleos Mexicanos and Subsidiaries, authorized the
donation of goods and chattel, among which we may
highlight the delivery of computer equipment and
ambulances, destined mainly to social actions such as
providing equipment for school centers with computer
rooms, health services and public safety.
In this sense, the Goods and Chattel Committees of
Petróleos Mexicanos and Subsidiaries, during 2008
granted directly the donation of goods and chattel of their
property, in accordance with the following terms:
Donations by State
States with a higher rate of oil-industry activities
Campeche, Chiapas, Tabasco and Veracruz
States with average oil-industry activities
Coahuila, Guanajuato and Hidalgo
Other States in Mexico
Federal District, State of Mexico, Puebla and Yucatán
Total
PESOS
4,900,623
1,080,979
170,659
6,152,260
Petróleos Mexicanos, through PEMEX-Exploration and Production, organized the Workshop “The ABC’s of Supplying and Services” for members of the
Enterprise Coordinator Council of Ciudad del Carmen, which took place from November 26 to 28, 2008.
This course is a pilot program so that entrepreneurs from Campeche may do business with the decentralized government agency and have
more information related to the bidding processes. With these actions, PEMEX continues its job of development for local suppliers and openness
in its activities.
An example of Petróleos Mexicanos’ activity on this matter is the Workshop “The ABC’s of Supplying and Services” organized for entrepreneurs in
Ciudad del Carmen.
93
Development actions for local suppliers
GRI EC9, human resources training, EC8, LA3, 4.8, 4.9
Management Model
PEMEX 2008
94
09
Suppliers’ Development
PEMEX takes measures to boost actions for local suppliers’
development in the communities where it operates;
therefore, within the social development program it includes:
PEMEX supports works and actions related to
environmental protection in oil facilities. During 2008, the
most outstanding are:
• Promotion of local suppliers and contractors linked to
the oil industry
•Workshops of development for suppliers concerning
supplying and services, public work and maintenance,
as well as drilling. Such workshops are organized by
the Subsidiaries; therefore, this does not involve the
transference of resources to local governments
• Actions to boost investment and jobs related to the oil
industry, which stimulates a relationship of SMEs with
the oil industry. Said program will be organized by the
Subsidiaries; therefore it does not involve the
transference of resources to local governments
•Conservation of the Lacandon Jungle in the medium
basin of the hydrological system of Tabasco’s plain
•Research for the assessment of critical environmental
aspects in the development of refining infrastructure
•Strategic studies on climate change for the oil sector
in Mexico
Agreements with Higher Education Institutions
Agreements have been executed with local academic
institutions that provide technical support to the oil
industry and offer special research services as well as
opportunities for internships.
Actions to boost investments and employment
With the grants and donations, PEMEX boosts the
investments and employment, strengthens the
relationship with the communities and establishes a
productive relationship between the company and the
society, which enables a better development of its
activities.
PEMEX supports productive projects that are selffinanced. In this sense, it works with specialized
institutions such as SAGARPA and CONAPESCA that follow
the process and assure the project’s execution.
Successful sustainable projects of the Integral Asset of Burgos
Name
PLACE
DESCRIPTION
Jobs
generated
Benefited
population
Women’s Group “La Esperanza”
Community La Mota
Corona, Progreso,
Coahuila
Company integrated by 12 women created with
tripartite participation
12
200
“San José” Greenhouse
Community San José de
Aura, Progreso, Coahuila
Company integrated by 18 inhabitants of the Ejido
18
120
Hydroponic Greenhouse
Community San Andrés,
Progreso, Coahuila
Company integrated by 9 members for the
production of forage by means of hydroponics
9
52
Community Learning Center
Community Las
Esperanzas, Muzquiz,
Coahuila
Learning center where the participants have access
to educational programs through information
technology
5
50
Community Learning Center
Community La Mota
Corona, Progreso,
Coahuila
Learning center where the participants have access
to educational programs through information
technology
5
150
Women’s Group “Escobedo”
Escobedo, Coahuila
Company integrated by 12 women who work on the
production of industrial cloth and bed linen, created
with a bipartite participation
12
270
Bakery
Ejido La Mota Corona,
Progreso, Coahuila
Company integrated by six inhabitants of the
Community
6
250
Community shop “La Mota
Corona”
Community La Mota
Corona, Progreso,
Coahuila
Company integrated by three persons with bipartite
participation and supplied by Diconsa
3
200
Community shop “San Alberto”
Community San Alberto,
Progreso, Coahuila
Company integrated by three persons with bipartite
participation. The land property was granted under a
bailment agreement
2
190
Other Initiatives in Oil-Producing Communities
Additionally, supports were given to the following
initiatives in oil-producing communities:
Family Plan of Civil Protection
Safety is a high priority subject for PEMEX. Furthermore,
the Corporate Operations Office made available for all the
staff members in the company, the Family Plan of Civil
Protection of Petróleos Mexicanos. Said plan is a guide
designed by experts that provides the actions to be
followed by the family before, during and after an
emergency. These useful advices, easy to apply, are of
high-value to the families’ safety.
XXVII Oil National Sports Games
Among the activities that encourage comradeship and
unity, within the framework of PEMEX’s 70th anniversary
and of the physical education and sports year, the XXVII
Oil National Sports Games were celebrated. Under a
schema of collaboration between the company and the
union, there was a participation of 1744 oil sports men
and women coming from 36 union delegations of
Petróleos Mexicanos.
DISCIPLINES INCLUDED IN THE NATIONAL OIL
SPORTS GAMES
• Chess
• Beach Soccer
• Athletics
• Softball
• Basketball
• Tennis
• Baseball
• Beach Volleyball
• Field soccer
• Volleyball
PEMEX 2008 Summer Course
Additionally, support will be given to PEMEX personnel
and beneficiaries desiring to participate in such games
and events.
Millions of Mexican Pesos (MM$)
Mutual Benefit Works
Donations and Grants
Award of moveable goods
3,000
6
2,500
2000
1,500
1,000
500
1,632
1,702
1,901
561
714
762
2008
0
2006 and 2007 include grants and donations
and mutual benefit works (OBM). 2008 includes
grants and donations, mutual benefit works
(OBM) and delivery of goods and chattel
95
In order to prevent overweight and health problems, such
as diabetes and diseases generated by sedentary habits,
which are common in our society, PEMEX and the
CONADE entered into an agreement to promote physical,
recreational and sports activities among the workers of
Petróleos Mexicanos. Sport trainers will help PEMEX by
participating in the promotion and diffusion of these
activities.
Social Development Investments
PEMEX 2006 – 2008
CONADE Agreement
The grants and donations given by Petróleos Mexicanos
keep their Legal nature of Federal Public Resources for
fiscal and openness effects, in accordance with the
Federal Act of Budget and Treasury Responsibility.
Likewise, as part of the openness actions of its
operations, PEMEX subscribes legal instruments and
reports to the Ministry of Finance and Public Credit about
the delivery of grants and donations, as well as about the
OBM it carries out.
From 2006 to 2008 the contribution to
communities has increased by 21.7%
2007
These activities were possible thanks to a team made up
of direct and indirect, as well as internal and external
co-workers.
According to the federal government guidelines, all grants
and donations from PEMEX are auditable and are subject
to be verified in such a way that the authorities can
monitor the use and destine of these resources.
2006
The coordination of Social and Cultural Activities managed
to provide a different kind of recreational activities during
the summer of 2008 for the children of PEMEX’s workers.
This consisted on the Summer Course “Let’s take care of
the environment”. Around 700 children participated on
this course that included recreational and educational
activities.
• Cinema Park Show
• Nursery projects in the Coyoacan Nurseries
• Visits to Los Pinos Official Residence, Zoo and Butterfly
Farm in Chapultepec, amusement parks and the
Granjas de las Américas Farm
GRI SO1, EC8, EC9, 4.11
Gulf Tertiary Oil Project (PATG)
It covers and area of 3,785 square kilometers from the north of Veracruz to the west of Puebla, which represents 39% of the total reserve of hydrocarbons in the country; i.e,
approximately 17 thousand million barrels of equivalent crude oil.
New Model of Sustainable Development
The PATG is extremely complex because of the geological characteristics of the area. It is estimated that it will be necessary to drill around 16 thousand wells in a minimum
period of 20 years, which began in 2002. One of the goals is to manage that, theoretically, by 2015 the production of the Paleochannel of Chicontepec (PC) will partially
compensate the loss of national production caused by the decline of Cantarell.
Moreover, the Project has unique characteristics in its design, because in addition to the technical aspects it integrates concepts of sustainable development. These concepts
consist of caring about the social and environmental contexts and improving the life quality of the inhabitants of the region through the promotion of sustainable productive
actions alternative to the extent of the company’s economic activities. The objective is to promote the creation of new life conditions.
To achieve this goal, in which the government, the productive sector and the civil society participate, PEMEX gathered a multidisciplinary group of experts to design a strategy of
comprehensive sustainable community development in an exploitation and production project.
This group is conformed by:
• United Nations Development Program
• The Universidad Veracruzana
• The University of Calgary
• The Environmental Resources Management Mexico (ERMM) group
• The Universidad Nacional Autónoma de México (UNAM)
The PC’s Sustainable Development Strategy is divided into three stages:
1. Immediate Action Plan developed by PEP that defines the basic principles to complement, improve and undertake Sustainable Development actions
2. Environmental and socioeconomic diagnosis developed by the UNDP and the Universidad Veracruzana. The UNAM will strengthen the social liaison strategy at municipal and
community levels
3. Design of the first local sustainable development strategy prepared by the UNDP, Calgary University and ERM Mexico
Results after a year of implementation of the Sustainable Development Model
In 2008, the first stage of methodology and strategies design was concluded, which made possible the beginning of the implementation of the Sustainable Development Model
strategies designed by PEP and incorporated to the Master Plan of the Integral Asset of the Gulf Tertiary Oil based on the aforementioned starting point or base line study. As a
consequence, the following results have been achieved:
• Study of social liaison made by the UNAM which shows in detail, the perception, opinions, values, attitudes and mechanisms of social and economic organization existent in the project’s
area of influence. Moreover, it identifies leadership in the community to locate spokepeople and promoters of this strategy
•First stage of the Program of sustainable development awareness
•Implementation of the Immediate Action Plan in 12 high-priority municipalities of the project. As part of the plan, a municipal headquarter was designed and elaborated to link the
socioeconomic and environmental vulnerability level with the oil activity
•Consolidation of macro platforms as part of the development strategy. These gather in one single facility 19 wells through which it is possible to reduce the project’s carbon footprint by
using a surface slightly above the platform’s surface. In this sense, besides the reduction of the affected soil, we obtain a decrease on the number of roads required, as well as a shorter
extension of the pipeline network that connects the various facilities, which in the past was made well by well. This is relevant due to the intensity of activities that define the project
• Adoption of design standards that incorporate Sustainable Development factors (guidelines for macro platforms and roads location (concluded) and transit rights (in process)
• Adoption of guidelines for the construction of platforms that intend to diminish the carbon footprint, through the installation of a buffer zone with the flora of the region in an at least 3
meters wide surface around the platform
•Reforestation program in oil activities (platforms, batteries, process centrals) and roads
•Reorientation of donations through the Social Development Management for works and actions in benefit of municipalities and communities integrating the region of influence of the ATG
• Support for the establishment of municipal plant nurseries that assure the local offer of trees. PEMEX will support the process and will incorporate them in accordance with the nursery
regulation in order to have the required plants with the proper size, quality and vegetable health parameters. Donations were authorized for two nurseries, one in Ixhuatlán de Madero
and the second one in Coatzintla, both in the State of Veracruz.
• Adoption of a sustainable development annex in order to commit PEMEX’s workforce to comply with the environmental regulations, reduce carbon footprints and decrease to the highest
point the impacts that may damage the environment
•Program for the implementation of the Environmental Administration Subsystem for the Integral Asset of the Gulf Tertiary Oil
2009 Program
PEMEX 2008
96
Environmental Actions
• Second awareness stage on Sustainable Development for the staff members of the ATG and the North Region: 100 awareness actions to foster the adoption of better practices
for sustainability within the company
•Community awareness in order to foster the adoption of a culture that supports sustainability: 100 awareness actions
• Awareness to contractors with obligations within the Sustainable Development Annex to guarantee development, fulfill standards and foster the development of a culture of
social responsibility
•Reforestation of facilities and platforms
•Foster the installation of municipal nurseries
•Characterization of natural interest areas
Actions for Social and Economic Development in Communities
•Consolidate the Sustainable Development Annex included within the contracts of the Asset for more than 100 million pesos
•Redesign wells and infrastructure to lighten structures and decrease costs and use of material
• Sign institutional and coordination agreements with state governments
• Strengthen grants for sustainability goals in projects
•Elaborate guidelines to boost the participation of SMEs within the project
• Support and consolidate an ecological land management in the region of the ATG Asset
•Program of surface restoration at the end of the useful life of well platforms
Actions within the SSPA-PEMEX Framework
•Implementation of the Environmental Management Subsystem (SAA, acronym in Spanish) in the ATG Asset
•Link the Subsystem to the Sustainable Development model
•Development of a gas handling program
•Design of a plan regarding the comprehensive handling of drilling cuts and fluids
•Integration of a program for water handling
•Incorporation of technologies that reduce emissions and therefore the environmental and social impact
• Second and third stage of training in ISO 14000
Immediate Municipal Action Plan
With the purpose of establishing a communication and synergy relationship for sustainable development, and based on the premise of
optimizing the use of PEMEX’s financial and human resources, a program was created under which the following results were obtained:
• An inquiry was hold in order to identify the needs and problematic issues in 12 municipalities
• General introduction to the PATG and presentation of the sustainable development model and its work team
•New image and agenda for a sustainable relationship
• Grants and donations focused on sustainability:
- Remodeling and construction of classrooms
- Urban equipment
- Road construction and rehabilitation
- Construction of recreational and training centers and community development centers
- Construction of nurseries
- Construction of sanitation sewerage
- Construction of a potable water system
ÁLAMO-TEMAPACHE
CASTILLO DE TEAYO
COATZINTLA
CHICONTEPEC
IXHUATLÁN DE MADERO
PAPANTLA
POZA RICA
TIHUATLÁN
TEPETZINTLA
PUEBLA
FRANCISCO Z. MENA
PANTEPEC
VENUSTRIANO
CARRANZA
97
First inquiry to municipal presidents
VERACRUZ
• Attention to the methodology framework and the nine strategic axes of sustainable development
•Organization into a hierachy of actions according to the diagnosis and the project’s operational program
•Design and elaboration of a municipal matrix
•Inquiries to municipal presidents to obtain the first catalog of possible actions
•Validation of the 2008 program of PEMEX-Exploration and Production in a second inquiry
to municipal presidents
•Fulfillment in time and form of acquired commitments
•Establishment of a single coordination channel between PEMEX-Exploration and Production
and local leaders within the project’s region
Products and Services
Goods and Services Supply Process
Continuous Improvement of Products
Life Cycle of Products
Continuity of Services
PEMEX 2008
98
10
ASPIRATION :
Develop and distribute products of less environmental
impact, by introducing cleaner fuels to the main
metropolitan zones and to all the country.
Deputy Director of Planning, Coordination and Assessment
PEMEX-Refining
Petróleos Mexicanos may proudly affirm that some of its
products compete with the worldwide market due to its
quality, thanks to the effort invested in the development
of fuels with low environmental impact, such as the
ultra-low sulfur diesel, natural gas and the reformulation
of gasoline with low content of sulfur. These actions
highlight the company’s commitment to a better
coexistence with the environment and the society.
As a unique gasoline producer in the country, PEMEX has
the double challenge of producing fuels of the highest
quality, with the higher efficiency, along with the growing
tendency of its prices due to the changes observed in the
worldwide economy. It is known that during crisis times,
the economy may fall fast to later restate the growing
pace in subsequent years, which leads to maintain the
company’s effort and the attention continuously on the
products quality. In a crisis situation, PEMEX should
maintain its research and technological innovation effort
seeking for the standardization of productive processes
to unify the regional products quality, first, to satisfy the
energy demand and also due to the eventual growing of
the amount of vehicles that demand clean fuels.
With legislative changes as regards the improvement of
the products quality, it is necessary to have a more
efficient production, dealing with two essential problems:
The efficiency in the use of resources and the possibility
of obtaining additional resources to generate new
products. For this reason, during 2008, two researches in
high efficiency projects were carried out, obtaining
positive results in the low sulfur fuel production.
Likewise, an important project with the government of
Mexico City was concreted for the supply of UBA diesel for
mass transportation purposes. Additionally to these
efforts, it is important to obtain the perception of the
company’s distributors on the quality of the products and
services of PEMEX, thus, an opinion survey on
transparency and quality is being applied to the
distributor’s network to have a complete vision of the
effectiveness of our actions in the search of quality.
For the year 2009, PEMEX has the objective of supplying
low sulfur fuels in all the metropolitan zones first, as an
important help to improve the environmental quality,
followed by the rest of the territory in different states in
projects to distribute UBA fuels for the public
transportation system, private transportation and school
transportation, as well as to continue boosting the
improvement culture on the products quality and
customer service.
FACTS
Challenges
•PEMEX already has a Process of goods, leasing and services supply
•Life Cycle Assessment (LCA) for the last three years in Refining and Petrochemicals
•UBA fuels supply in the metropolitan area (Monterrey, Guadalajara and the Mexico
City Valley)
•Monitoring customers’ satisfaction through surveys of PEMEX’s customer perception
• Achieve ISO 9001:2000 quality certification in all the processes
•Continue promoting the means to reduce impacts in the selection of inputs,
manufacturing and construction, waste handling, energy and water
•Continue with technology research and innovation
GRI 2.2, PR3
PEMEX, as the national industry of hydrocarbons, generates,
among other things, the following products:
Main products by Line of Business
Exploration and Production:
Crude Oil
Natural Gas
PEMEX 2008
100
10
Refining
PEMEX Premium UBA: 92 octane low sulfur content
gasoline
PEMEX Magna: 87 octane lead-free gasoline
PEMEX Diesel: fuel for internal combustion engines
Special Marine Diesel: fuel for sea vessels
Low Sulfur Industrial Diesel: industrial fuel with low
sulphur emissions
Fueloil: fuel used for industrial processes and large sea
vessels
Aircraft Fuel: fuel used by airplanes with traditional
internal combustion engines
Jet fuel: fuel used in aircraft with turbine engines
Others: naphta fuel, gas solvent, oil coke, citroline,
asphalts, basic lubricants and paraffins
Gas and Basic Natural Gas Petrochemicals: fuel for
domestic and industrial use, which is also used as raw
material for petrochemical processes
Liquefied Gas: mix comprised primarily of propane and
butane, for domestic use
Basic petrochemicals: ethane, propane, butane, pentane,
hexane, heptane, raw material for lampblack, naphtha,
methane, used primarily as fuel and industrial raw
materials
Sulfur: byproduct derived from sweetening of sour gas
and refining oil
Petrochemical methane derivatives: ammonia and
methanol
Ethane derivatives: raw materials for the plastics industry
Aromatics: petrochemical chain for the production of
solvents, sealants, and paint industry supplies, among
others
Propylene and derivatives
Others: glycols, reformed fuel, oxygen, hydrogen,
nitrogen, hydrochloric acid, muriatic acid, hexane and
heptane
Services offered by PEMEX are linked to the market of
products it serves both, at a national and international level,
generating an economic value throughout its supply chain. A
good example is the product marketing management, as well
as customer and supplier support for the development of its
operations. Moreover, in accordance with its philosophy,
PEMEX has worked to obtain ISO 9001:2000 certifications in
particular or comprehensive processes that cover the
following areas: production, transportation, trading, planning,
human resources, maintenance, safety, supply, finances,
accounting and costs.
In 2008, the following actions were taken:
•For the production area in each organism, 14 Best
Practices have been implemented integrating the
operational reliability model of PEMEX as a
comprehensive business initiative (for further
information see the chapter on Safety in supply)
•For the supply area, the process of goods, leasing and
services supply was designed as a response to the
modification made to the Acquisitions, Leasing and
Public Sector Services Act, concerning the supply
process5
5
The acquisitions, leasing and services related to productive activities
established in Articles 3rd. and 4th of the Regulatory Act, Section 27 of
the Constitution as regards the Oil Sector, carried out by Petróleos
Mexicanos and its Subsidiaries are excluded from the application of this
regulation. Therefore, they will be governed by what has been established
within their Act, except when it expressively refers to this regulation.
Goods and Services
Supply Process
1. A differentiated operation regime regarding debt, budget,
acquisitions, leasing, services and public works, special
hiring methods as well as control and accountability.
2. It restates that individuals will be able to participate in
works and services only by providing contracts, which
will be compensated in cash, and forbids shared
production and risk agreements.
In order to adapt such changes, PEMEX developed during
2008 the Annual Hiring Plan which includes the process of
goods supply, leasing and services, integrated by the
following five key stages:
Goods, Leasing and Service Supply Processes
Need / Request for goods, leasing and
service supplies
Supply planning and
strategies
Agreement and contracting
Contract management
Warehouses and inventory
control management
Follow-up on supply process
performance indicators
Evaluation
• Define the acquisitions, leasing, works and services
required by each Subsidiary
• Begin a diagnosis of participation of Mexican suppliers and
contractors in works, acquisitions, goods leasing and
services
• Structure the contracts of the new hiring modalities, for
annual content effects
• Define the support strategy for national suppliers and
contractors development
• Create a specialized area of promotion and incorporation
of new national suppliers and contractors
• Develop a proposal of administrative regulations proposed
by the committee on this matter
• Develop operational policies, bases, guidelines and rules
• Propose a restructuring strategy for purchase
organizations so that these may conform to PEMEX’s new
operational model
• A new hiring system for substantial productive activities:
- Hiring for key business will be exempt from the
Acquisitions, Leasing and Public Sector Services Act and
the Public Works and Related Services Act
• The Committee of Acquisitions, Leasing, Services and
Works will carry out the development examination,
assessment, follow-up and recommendations concerning
annual contracts of acquisition, construction and service
- It determines the reason for not making public bidding
processes
- The president of said committee will be a professional
counselor
Green Purchases
PEMEX purchases are made in accordance with the
Acquisitions, Leasing and Public Sector Services Act, as
well as the General Supply Policies, Bases and Guidelines
related to Acquisitions, Leasing and Services for
Petróleos Mexicanos, Subsidiaries and Affiliated
Companies (PBLs). This set of regulations establishes
the aspects that must be considered for hiring
procedures within the environmental sustainability
scope; i.e. “green purchases”.
Likewise, within the planning, programming and
budgeting bases and guidelines, it is necessary to detect
goods and services that may be substituted by alternate
or advanced technologies, under criteria that contribute
to save energy, reduce the generation of polluting
emissions and pollutants, the use of water and/or provide
a higher capacity for water reuse and reduce the
generation of the amount of waste.
101
In this sense, concerning the provision of goods, leasing and
services as inputs for PEMEX, the modifications derived from
the Energy Reform to the Petróleos Mexicanos Act in the
supply process, sets forth the following changes:
The following actions were established for the
aforementioned stages:
As an important link of the supply chain in which it
participates on the exchange of raw material, services and
final products, PEMEX requires that its inputs (goods, leasing
and services) be acquired through third parties that meet
certain specifications and guidelines, in order to guarantee
quality to the final user. Therefore, it is very important that, in
accordance with the law, contracts be made under specific
procedures.
GRI Management approach PR, PR3, EN26, PR1
Continuous Improvement
of Products
Quality of Products
Technological Innovation for Better Products
PEMEX processes three varieties of crude oil, according to
the mix exploited in Mexican oil fields. These mixes are
characterized by the density in degrees standardized by the
American Petroleum Institute (API) and by its sulfur content:
PEMEX bases its actions on the research made by the
Mexican Oil Institute (IMP, Spanish acronym) which has the
main objective of doing technological research and
development in the oil industry, as well as providing
specialized services focused on PEMEX’s strategic and
operational needs. Among the last researches published by
the IMP for the improvement of products, the most
outstanding are the following:
• Maya, heavy crude oil with an API density of 22° and 3.3%
of sulfur
• Istmo, light crude oil with an API density of 33.6° and 1.3%
of sulfur
• Olmeca, very light crude oil with an API density of 39.3° and
0.8% of sulfur
Natural gas allows reaching combustion of 100% of
efficiency and is considered one of the cleanest fuels
because of its methane content in 95% of the cases.
Nevertheless, it requires to be processed for its
consumption in the gas processor centers of PEMEX so
as to eliminate impurities such as small quantities of
ethane, propane, nitrogen traces, carbon dioxide, sulfuric
acid and water.
10
Refined products, such as gasoline, have suffered several
reformulations to provide the expected quality to
consumers. For example, depending on the octane rating
required by vehicles currently distributed, because in
1940s it was of 70 for Mexolina and since 1991 with the
inclusion of catalytic convertors of 87 and 92 octanes, for
Magna and Premium gasoline respectively. Said changes
in the products’ quality have also been developed to
satisfy concerns regarding environmental and health
matters, in response to national demands, such as to
decrease tetraethyl lead in gasoline since 1973 until its
entire elimination in 1990, which allowed producing the
first Mexican gasoline without lead content.
• Formulation of an inhibitor dispersant additive of
asphaltenes, new inhibitor-dispersant denominated
IMPDAIM- 1000, used to efficiently control the
accumulation of asphaltenes in the pipeline of wells
production affected by the sedimentation of heavy
organics
• Process for the catalytic hydro treatment of heavy
hydrocarbons in oil. This technology was in development
process since 1999, in order to facilitate the refining of
heavy crudes produced by PEMEX and increase its value.
The crude quality improvement obtained through the
application of this technology is significant, because in
addition to higher distillates yields, improved crudes
present low content of sulfur, metals, asphaltenes and
precursors of carbon formation
PEMEX and the Centro Mario Molina para Estudios
Estratégicos sobre Medio Ambiente, A.C., entered into an
agreement in 2006 to make studies related to the
“Cost-Benefit Evaluation of the Quality Improvement in
Automobile Fuels in Mexico”. Therefore, researches are still
being performed regarding the possibility of creating
projects with a lower environmental impact.
For further information visit the website http://www.imp.mx/
Ethanol in Gasoline Pilot Test
In response to the Program of Bioenergetics Introduction of the Ministry of Energy (SENER, Spanish acronym) for the development of the production and
consumption chain of the fuel mix for transportation, PEMEXRefining requested the IMP to make experimental studies and the documental analysis to estimate
the behavior that gasoline, engines and its emissions would have when incorporating anhydride ethanol in gasoline.
PEMEX 2008
102
The ethanol is not classified by the USEPA as a toxic compound, but its estimated concentration is notorious in the steam of the gasoline containing it, therefore
when substituting MTBE for ethanol, it would eliminate the ether steam which is considered as toxic.
As a consequence of the studies, it has been proposed that the gasoline’s oxygenation with ethanol anhydride is done in storage and delivery terminals (TAR)
in an approximate concentration of 2% in oxygen weight, equivalent to 11% of volume of methyl tert-butyl ether (MTBE) which has been contained in the
Magna gasoline oxygenated in metropolitan zones and 6% of the anhydride ethanol volume. Nonetheless, in compliance with the respective specifications, it
is necessary to make adjustments in the formulation of base gasoline without oxygenation, because ethanol in low concentrations tends to increase the steam
pressure and the octane rating in gasoline.
With this formulation, pilot tests were carried out in the Metropolitan Zone of Mexico’s Valley (ZMVM, Spanish acronym) for eleven weeks, in a fleet of vehicles
that used base Magna gasoline with an ethanol volume of 6%. Results showed that vehicles can have a performance similar to that obtained from gasoline
oxygenated with MTBE. Observations of this fleet allowed inferring that a pilot test in the Cadereyta TAR should be developed without showing behavior conflicts
in the engines. Since the equipment manufacturers and terminal users operate under regulations developed by ASME, NFPAL and UL, the adaptation to new
schemas of ethanol containing gasoline production has been relevantly fast and in general terms there has been a consent and disposition to guarantee a safe
management of new fuels. PEMEX’s proposal to add 6% v/v of anhydride ethanol to oxygenated gasoline is based on the works that have been developed, and
also on a wide international experimentation, through which it may be inferred that the proposed schema for the use of fuel ethanol can be assimilated by the
great majority of engines conforming the total amount of vehicles, with an adequate program of gasoline handling and control.
Focusing the Life Cycle of Products on Sustainability
LCA in PEMEX-Petrochemical
The tendency observed in consumers’ expectations about
the products they buy, indicates there is a preference for
product quality that includes measures of natural resources
preservation and environmental protection within their
elaboration processes. In this sense, the oil sector confronts
the challenge of developing high quality products in order to
satisfy its consumers’ expectations through the
implementation of methodologies that identify said
opportunity areas, such as the products’ LCA.
During the last two years, life cycle assessments have been
carried out in different petrochemical plants, such as the
esthyrene plant in the CPQ Cangrejera (2006) and the
chlorate plant III in the CPQ Pajaritos (2007). After these
evaluations were performed, there was a substantial
improvement on the reduction of environmental impacts.
PEMEX considers that the life cycle approach is fundamental
for the evaluations of sustainability, since it promotes the
necessary means to diminish environmental impacts on
communities and companies from the selection of material
to be used as inputs, manufacturing and construction
practices, waste handling, energy and water.
The implementation of the LCA methodology during the last
three years has been carried out under the approach of a
continuous learning process among its technical workforce,
based on the ISO 14040 standards through introduction
courses and workshops such as the International Forum of
Eco-Efficiency that took place during 2008.
Ethylene and acrylonitrile plants in the CPQ Morelos were
evaluated in 2008. In the case of the first one, there was an
evaluation of the plant’s design in relation to the operation
and recycling of used oils, solvents and diesel generated in
other plants and workshops of the Work Center. Based on
this evaluation, we can highlight the reduction of fuel oil and
natural gas consumption in auxiliary service boilers, through
the recycling and energetic use of used oils. As regards the
acrylonitrile plant, the current plant design was considered
in relation to that proposed by the contractor company, in
order to evaluate the recovery of some sub-products which
means a more profitable production.
LCA in PEMEX-Refining
The application of the life cycle assessment methodology
allows determining the environmental impacts of the oil
production. Likewise, it provides the rates of mass / BPCE
emissions throughout the entire cycle of oil extraction,
production and consumption. A very important achievement
would be the establishment of the inventory in the value
chain of oil products from the Refinery in Tula, such as the
crude extraction in marine regions and crude transportation
to the maritime terminal in Dos Bocas. As a consequence of
this project’s results, there are plans now to perform this
assessment in other refineries, the gas processor centers
and the petrochemical facilities of PEMEX.
International Forum of Eco-efficiency 2008: Life Cycle Management
The International Forum of Eco-efficiency 2008 took place in September, in the City of Coatzacoalcos, Veracruz. The Forum’s main subject was “Life Cycle
Management in the Oil Industry of Latin-America and Environmental Costs” and there was a participation of important figures from Mexico, Brazil, Costa Rica,
Cuba, Argentina and Chile, as well of the Coordinator of the Life Cycle Initiative of the United Nations Environment Programme which has its headquarters
in Paris, France. As regards Mexico, there were representatives from the SEMARNAT, the IMP, the Universidad de Guanajuato, PEMEX, as well as municipal
authorities and public institutions of higher education.
The Forum of Eco-efficiency organized since 2005 and headed by PEMEX-Petrochemicals, has been an opportunity for PEMEX to show the work that has
been carried out to reduce the ecological footprint of the organization starting from its products and to promote the environment protection. The speeches that
provided information about PEMEX products’ life cycle were:
• Assessment concerning the life cycle in oil production in the Miguel Hidalgo Refinery (IMP)
• Integration of the inventory for life cycle assessment in oil production in the Miguel Hidalgo Refinery (IMP)
• Life cycle assessment in PEMEX-Petrochemical (PEMEXPetrochemical)
• Biodiesel production: study of kinetics in a sustainable process with a life cycle approach (Universidad de Guanajuato)
GRI PR5, PR8, EN29, PR3, PR4
Continuity OF Services
Support and Follow-up of Customers’ Satisfaction
PEMEX gives high priority to customers’ support and
satisfaction. Accordingly, it is essential to establish
communication, deliver information and assure a quality
product in service providing and product delivery; therefore, for
such purposes, direct communication channels have been
established. Among these channels we may find the
Subsidiaries’ web site, in which there is information regarding
products and services, claims and suggestions, service of
technical support, which enables to clarify questions and
comments from the customers and the general public. These
efforts are annually measured through the “PEMEX’s Survey of
Customers’ Perception”.
For further information visit http://www.pemex.com
Results of Customer Satisfaction in PEMEX-Gas
Since 2004, PEMEX-Gas conducts an annual survey to
measure the customer satisfaction rate regarding natural
gas. This survey is conducted by an external company that
guarantees that the sample of customers surveyed is
representative, that the data is consistent and that the
confidentiality of the surveyed customers’ identity is
protected. The rate of customer satisfaction measures the
percentage of natural gas customers that are completely
satisfied with their relationship with PEMEX-Gas. For this
reason, the Deputy Office of Natural Gas follows-up on the
findings derived from the surveys and has developed trading
strategies that respond in a better way to customers’ needs.
It is worth mentioning that during 2008, 93 service
complaints were registered, mainly related to the gas
measuring revision, invoicing and business portal. That is,
out of 20,822 generated invoices, there was a percentage of
0.13% complaints whereas out of 56,354 customers that
accessed the website, 0.07% complaints were received:
There were also 31 complaints for the natural gas quality,
related to liquids, dusts, nitrogen, calorific power and water.
As a result of the analysis of the customer satisfaction
survey results, PEMEX-Gas developed an internal strategy
for the Customer Relationship Management (CRM), which in
2008 consisted of:
• Improving processes such as pre-manufacturing and
measure reconciliation in the portal and procedures
related to gas quality
• Achieving better customer knowledge: four customers
gave talks about their process in our offices
• Delivering information to customers: customers were
notified about the evaluation results of financial
information, the termination notice of contracts under
transitory regimen and the request of legal documentation
to sign Modifying Agreements
• Interacting with customers: there were 307 visits to
natural gas customers
• Carrying out training actions: the percentage of customers
that invoice through the portal has increased
10
Cualli Franchises
PEMEX-Gas
Customer Satisfaction Index (%)
The Company has a PEMEX Franchise Distinction Program for those Service Stations operating
approved model gas tanks or prototypes and a certification of compliance with the NOM-005SCFI-2005 regulation.
Those franchises that comply with the program’s requirements are authorized to use the Cualli logo
on their corporate image. Likewise, PEMEX published the magazine “Octanaje”, which is the official
gazette of the PEMEX Franchise. This magazine presents interesting topics for the members of this
sector –Gasoline entrepreneurs, Suppliers and staff members of PEMEX-Refining-, so as to
improve the Service Stations through the consolidation of the PEMEX Franchise System developed
throughout the country. For further information go to www.pemex.com
66
72
73
69
2006
2007
2008
0
2005
20
67
40
2004
104
60
PEMEX 2008
80
Products’ Safety within the Delivery Process
PEMEX’s Geographic Information Service
Products traded by PEMEX have Quality Certifications
regarding their production, transportation and trading
processes. During the load process, before being
distributed to the customer, characteristics and
specifications are detailed based on the respective safety
sheet. Even the units used for land transportation of
hazardous products are subject and required to provide
the identification of the product according to regulations,
as well as to have the loading related documents in which
the product’s origin and destination are stated.
Since 1992, PEMEX established the Corporate
Information System (SICORI, Spanish acronym) in order
to generate corporate information of geographical data
from the operations of exploration, production, gas,
refining and petrochemicals, focused on the physical,
socio-political and economic environment of the country.
When products are delivered to the customer, PEMEX is in
charge of providing the quality certifications and the
corresponding information of the product’s risk in case of
accident, and it provides training to the customer as
regards the product’s handling, storage and
transportation. Additionally, PEMEX carries out safety
inspections in its customers’ facilities in order to assess
the risk level with which products are handled as regards
different aspects: processes, product handling, storage,
facilities, emergency system and personal protection.
It is worth mentioning that PEMEX produces raw material
for the petrochemical industry, where customers are
responsible for the use and disposal of finished products,
under the hazardous products use and handling
regulation and the hazardous waste disposal regulation.
As regards service stations of PEMEX Franchises and gas
pipelines of PEMEX, through which liquid and gas fuels
are supplied to medium and final customers, the
Company acknowledges its joint responsibility and has
accident prevention plans and emergency plans.
Nowadays, based on this system, PEMEX provides
services to the oil industry and has a database that
contains information regarding oil facilities, communities,
municipalities, cartography at different scales, satellite
images, weather, facilities real-time monitoring, among
others. Its main services are technical support and
training in the geographic information systems, with the
opportunity of access to PEMEX geographic database,
among other things.
During 2008, by means of the SICORI system, services
and products related to geographic information were
provided, based on three business lines of this system:
application and consulting development, geographic
information services to be required by the customer and
online information services, which were carried out
based on processes registered within the Quality
Management System of the SICORY under the ISO
9001:2000 Regulation.
Mobile Laboratories
During 2008, PEMEX-Refining acquired 18 new mobile laboratories, with which the total amount
increased to 42 laboratories as of January 2009. This equipment is used for commercial visits to
service stations and distributors to verify the fuels’ quality and quantity and contribute so that the
final consumer receives the product with the proper specifications for the good functioning of their
vehicle. Furthermore, these measures are taken to support the franchisees in response to any
customer complaint about product quality.
During 2008, a total of 11,673 visits throughout the country were paid to service stations in order to
verify the quality of all the fuels. Other 788 visits were made in order to verify the quality of the
PEMEX Magna gasoline of ultra-low sulfur, after the entry to the market of this new gasoline in the
Metropolitan Zones of Monterrey and the Valley of Mexico.
105
The 42 mobile laboratories are strategically distributed along the country.
GRI 4.9, management approach
A Single Management System:
PEMEX-SSPA System
One of the functions of the Inter-subsidiary Commission of
Safety, Health and Environmental Protection (CAISSPA,
Spanish acronym) is to coordinate that all the organisms and
Work Centers of Petróleos Mexicanos use the same criteria and
methodology to achieve the implementation of a system as
broad and transcendental as PEMEX-SSPA. This Commission
developed and implemented a guide for the different areas to
know and apply the System.
The PEMEX-SSPA System is based on the 12 International Best
Practices (MPI, Spanish acronym) and three Subsystems:
Processes Safety Management (SASP), Occupational
Health Management (SAST) and Environment Management
(SAA). The first two have 14 Elements whereas the third has 15
Elements. The documents of each element are: description and
requirement; technical guides / guidelines; auto evaluation
guides; auditing protocol; and auto evaluation table.
12 International Best Practices
1. Visible and proven commitment of top management
and chain of command
2. Documented and communicated SSPA Policy
3. Chain of command responsibility for SSPA
4. Structured organization for SSPA management
5. Aggressive goals and objectives
6. High Performance Standards
7. SSPA Role
8. Effective Audits
9. Incident Reports and Analyses
10. Permanent Training Programs
11. Effective Communications
12. Progressive Motivation
The system’s application is aimed at improving the
performance as regards safety, health and environment
protection and to contribute to the reduction of incidents,
lesions and sickness at work, as well as to consolidate a
culture of prevention within PEMEX.
Operational Discipline Sub-team
In order to strengthen the operation of the structured
organization, specifically the operational discipline process,
the OD directive leadership sub-team started to operate. This
sub-team is in charge of conducting, standardizing and
evaluating the implementation of best practices on this
matter; therefore, in 2008 a goal was set regarding the
application of a cycle at 100% of OD for the eight critical
procedures stated on the PEMEX-SSPA System Manual and the
Health and Safety Regulation of Petróleos Mexicanos.
Among the main actions carried out by this team during
2008 we can find:
• Implementation diagnosis of the OD
• Support for the application of OD to critical procedures
• Design of the standardized process of OD within the
framework of the management system by processes with
the integration of primary processes, human resources and
maintenance
• Incorporation of the auto evaluation table with the eight
critical procedures
• Revision and improvement of technical guides of OD
• Strategic workshop of OD 2009-2011
• Development of requirements to implement an institutional
technological solution for OD
• Program to implement the standardized process and tool of
OD in 27 pilot centers of PEMEX
Auto-evaluation by organisms
In order to verify compliance with the PEMEX-SSPA System,
during 2008 each organism carried out autoevaluations
within their Work Centers, which enabled the identification of
the implementation degree of each element of the system, as
well as the key areas of opportunity to achieve the system’s
consolidation. The autoevaluation begins with the Level 1 of
the Element to be evaluated, and as the fulfillment of each
“descriptive action” of that level is verified, it is possible to
move to the next level.
Operational Discipline (OD)
The key axis of the PEMEX-SSPA system is Operational
Discipline, which is a process that ensures compliance with all
regulations established in the regulating documents in use by
Petróleos Mexicanos, Subsidiaries and corporate offices, in
order to verify that all operations and activities are performed
in a correct, consistent and safe manner. The implementation
of the operational discipline process in PEMEX, seeks to
standardize the application and execution of activities,
including operational and preventive controls in those
actions involving risk.
PEMEX 2008
Availability
Quality
Communication
Compliance
100
80
60
HO
PPQ
0
PGPB
40
PREF
PEMEX 2008
106
The performance measurement and evaluation of operational
discipline during 2008 was done through implementation
indicators of the four stages mentioned above and these are
described as follows:
OPERATIONAL DISCIPLINE (%)
PEP
Operational discipline entails four stages:
a) Availability of procedures and documents
b) Content quality in procedures and documents
c) Communication and understanding
d) Strict execution fulfillment in all areas through work
cycles for the workers
Self -evaluation levels
5
Continuous Improvement
Corresponds to the level at which all of the procedures and mechanisms required by each Element have been both fully
implemented and included the implementation and establishment of more than one improvement cycle with the purpose
of achieving excellency, which translates into effectiveness and continuous improvement.
4
Established system
Corresponds to the level at which all of the procedures and mechanisms required by each Element have been fully
implemented. This level can only be reach by fully implementing all level 2 procedures and mechanisms and
systematically assuring that they are free of any type of variation. Staff members at this level follow the procedures
because they are convinced of the benefits they represent, which includes the completion of at least one improvement cycle.
3
Establishing the System
This corresponds to the level at which the procedures and mechanisms required by each Element have been
implemented. This level is satisfied once all of the procedures and mechanisms that were developed to satisfy level 2
have been disseminated, the staff members have been trained and the procedures and mechanisms are
applied as a rule, with implementation levels that only present certain variations.
2
Developing the System
Corresponds to the level at which each Element’s procedures and mechanisms are designed, prepared, documented and
implemented. This level is only satisfied upon fully designing, developing and documenting each required procedure
and mechanism.
1
Evaluating the System and
Raising Awareness
This implementation level is the basis of the Element, which determines the desired direction the Company wants to
follow. The Company believes it must raise critical awareness levels among all staff members –through reflection– and
regarding the importance of the impact the Element creates as part of the system, and how meeting its requirements
contributes to improving the Organization’s SSPA performance and increases personal benefits. This level is satisfied
when the staff members objectively prove that they are aware of the importance of working on the element and how this
can contribute to improve the SSPA performance.
In 2008 the auto assessments conducted by Petróleos
Mexicanos and its organisms provided the following results:
Management System by Processes:
Institutional Process for SSPA Auditing
PEMEX’s Levels of Implementation
Within the framework of the Management System by
Processes (SGP, Spanish acronym) that Petróleos Mexicanos
is implementing as of 2008 in all its complementary and
support processes, during this year the implementation
strategy was developed and instrumented for the Institutional
Process of SSPA Auditing, used as a technological tool of SAP
Audit Management AM support.
Goal 2008 - 2010
December 2008
SASP
SAST
SAA
12 IBPs
SASP
SAST
SAA
The implementation of this process initiated for all the
Subsidiaries and corporate areas and this will continue
and will be consolidated during the 2009-2010, so as to
include all the staff members involved in this process and in
all the following types of SSPA audits:
PEMEX-SSPA System (12 IBPs)
and SASP, SAST, SAA
subsystems:
Quality, safety, health and environmental
protection management systems
Regulatory Requirements
International reinsurance
Clean Industry
Mixed Commission on Health and Safety
SSPA Task Force
Comprehensive level of the facility’s
environmental safety
Mechanical integrity
Subsidiary Specific
107
12 IBPs
Training was provided to 125 key users of the organisms for
the implementation of the institutional process with the
following scope:
•Process, functions and auditors roles in SSPA
• Corporate planning guidelines, auditing management and
follow up on recommendations
• Standardized auditing protocols for the PEMEX-SSPA
System
• Functionality of SAP AM
1.5
2.0
1.2
2.0
1.9
2.0
2.0
3.0
The strategy comprised the following stages:
• Logistics
• Training
• Change administration
• Implementation for key users of the process
• Initiation of operations
GRI 4.9, management approach LA
Agreements of the Professional Joint Groups of
Health and Safety
During 2008, the Joint National Commissions of Industrial
Health and Safety (CNMSH, Spanish acronym) held 12
ordinary meetings of evaluation and agreements about
specific matters presented by the joint coordinating groups of
the corresponding Local Joint Commissions of Health and
Safety (GMC, Spanish acronym). Six meetings were held in
Mexico City and the others were held in different regions. For
the regional meetings the CNMSH were summoned under the
jurisdiction of the host organism within the framework of
accountability and performance evaluation.
The CLMSH carried out extraordinary on-site examinations in
357 Work Centers and the results were presented to the Board
of Directors of Petróleos Mexicanos and the representatives of
the Mexican Oil Labor Union. From these visits, the following
agreements were established and complied:
• Approval and disclosure for application of the “General
Guidelines for the Creation, Organization and Functioning of
the Joint Commissions of Health and Safety of Petróleos
Mexicanos and Subsidiaries based of the Collective
Bargaining Agreement currently in force and the NOM-019STPS-2004, last edition”
• Elaboration, approval and spreading for application of the
“Guidelines issued by the Joint National Commissions of
Industrial Health and Safety for full-time activities to be
carried out by the Union Commission of Health and Safety
as a member to the Joint Local Commission in the Work
Center of its jurisdiction”
• Elaboration and approval of the “Guide for ordinary visits of
the Joint Local Commissions of Health and Safety in
accordance with the program of verification visits”, which
will be disclosed for application during 2009
• Along with the Social Communication Management, the
Company participated in the strategy for the “Spreading
Campaign of the Health and Safety Regulation of Petróleos
Mexicanos and Subsidiaries” to be developed in all the Work
Centers of the company during 2009
• Elaboration of the strategy of “Training in the Health and
Safety Regulation of Petróleos Mexicanos and Subsidiaries”,
that the GMC and CLMSH will develop during 2009
• Proposal of risk evaluation methodology based on the
NOM-028-STPS-2004, “Work organization- Safety in chemical
substances processes”
In addition, the CNMSH held monthly sessions with the
objective of consolidating and evaluating the process of
attention to CLMSH agreements.
Verification Unit
Petróleos Mexicanos has an internal verification unit that is
periodically audited to maintain its accreditation from the
Mexican Accreditation Entity and its approval from the Ministry
of Labor and Social Welfare, for the evaluation of compliance
with the Official Mexican Regulations concerning occupational
health and safety, health and environment. This unit provides
services under the NOM-020-STPS-2002 “Containers subject to
pressure and boilers-functioning-safety conditions” and the
NOM-026-STPS-1998 “Colors and health and safety signs, and
risks identification in fluids conducted by pipelines”.
In 2008, the verification unit received the accreditation to
evaluate compliance with the following regulations:
• NOM-002-STPS-2000 Safety conditions, prevention and
fire-fighting in Work Centers
• NOM-010-STPS-1999 Health and safety conditions in Work
Centers involved in handling, transportation, process or
storage of chemical substances capable of generating
pollution within the labor environment
• NOM-011-STPS-2001 Safety and health conditions in Work
Centers involved in noise generation
• NOM-017-STPS-2001 Personal protection team –Selection,
use and handling in Work Centers
• NOM-019-STPS-2004 Constitution, organization and
operation of the safety and health commissions at the
Work Centers
• NOM-028-STPS-2004 Work organization – Safety in chemical
substances processes
On July 31, 2007 the representatives of the STPS, SENER and
Petróleos Mexicanos executed the General Agreement of
Collaboration Basis to support the activities of the Verification
Unit of PEMEX and the PASST Agreement of the Auto
management Program of Occupational Heath and Safety.
Likewise, the program 2008- Attention to the CLMSH
2012 of compliance with the NOM-020-STPS-2002 regulation
of containers subject to pressure was established.
Attention to the CLMSH Agreements
40% Compliance
PEMEX 2008
108
PEP PREF PGPB PPQ
16,214
6,425
1,246
516
952
206
1,941
1,051
5,806
2,863
6,269
1,789
Agreements generated
Agreements served
PM TOTAL
Within the same line of activities, the Network of
Institutional Liaison with the Organisms was created for
compliance with the STPS regulations. In this regard, training
courses were given to 66 specialist engineers of the Subsidiaries.
In addition, we continued with the census and diagnosis of
containers subject to pressure and concluded, during 2008,
33 additional facilities to the six refineries built during 2007. To
date, this represents a total of more than 27,600 pieces of
equipment registered, with 1,000,000 registries and 120,000
photographs for 39 facilities of PEMEX’s Subsidiaries. The
progress regarding the total amount of containers to be
certificated allows determining the investments required in
this effort to comply with the official regulation.
During 2008, the verification unit contributed with the
elaboration of 150 files of containers subject to pressure for
the refinery in Tula, and the certification of 2,260 pieces of
equipment in accordance with the NOM-020-STPS-2002: 413
by its own means and 1,847 more by contract with a private
verification unit (635 in PEMEX-Refining, 886 in PEMEXPetrochemicals, 696 in PEMEX-Exploration and Production and
43 in PEMEX-Gas and Basic Petrochemicals). Therefore, since
the beginning in October 2003, 5,285 containers have been
audited. It has been established that we will continue with the
process of development to fulfill the work program 2008-2012
arranged in collaboration with the STPS and the SENER.
In 2008, considering the services hired directly by the
Subsidiaries, 6,456 containers subject to pressure
were verified.
The total amount of containers certified to date is
of 17,007 from a total census of 29,617, which
means that there was an increase from 37% in
December 2007 to 58% currently, as regards
compliance with the NOM-020-STPS-2002.
Number of accrued Pemex
U.V. 2008 opinions
Occupational Health Management Subsystem (SAST)
The Central Coordinating Group of Occupational Health decided to
focus its performance regarding development on three
fundamental strategic lines for the consolidation of Occupational
Health in Petróleos Mexicanos and Subsidiaries:
• Implementation of the SAST
• Human Resources training
• Organization
As regards the implementation of the SAST – and in response
to the need of external support for the attention of some SAST
elements related to psychosocial and ergonomic factors and
occupational health services management in Subsidiaries and
Corporate Areas- a plan was carried out to develop the element
of psychosocial factors and a methodology to assess the
psychological requirements of the position. Likewise, there
was a proposal of training for professionals specialized on
Management of Occupational Health Services, with technical
and administrative abilities that allow them to be responsible
for the coordination of occupation health at strategic, tactic
and operative levels, in compliance with the established
statutes of the official Mexican regulation NOM-030STPS-2006, regarding Organization and Functioning of
Occupation Health and Safety Services. Furthermore, we
contacted suppliers of external services for the attention of
SAST ergonomic requirements and their possible participation
in the formation of resources on this matter.
As part of the activities carried out within this group, there was a
negotiation before the Committee of Internal Regulated
Improvement (COMERI, Spanish acronym) for the issuance of the
organization and operation guidelines of the multidisciplinary
services of occupational health, which was revised by the
representatives of the Subsidiaries, of the Deputy Office of Health
Services and the Internal Control Body, whose observations were
considered in order to have a final version and continue its
negotiation before the General Lawyer’s Office.
During 2008, works continued for the consultancy and
participation as regards diffusion and training of leadership
sub-teams of occupational health in Subsidiaries and the head
office. The advances in the implementation of the SAST in
Subsidiaries and corporate areas show the establishment of a
structured organization in all of them, the execution of the
auto-evaluation and the elaboration of programs of
improvement actions. The results of PEMEX’s joint autoevaluation, places it on the 1st level of the Subsystem
related to the level of awareness, but at the same time
highlights the fulfillment of descriptive actions from the
2nd and 3rd level in some of the 14 elements.
537
707
PPQ
84
171
171
238
398
PEP
432
689
972 1,453 1,536
797 2,644
109
448
2006
100
2008
2005
0
PVU
REF
2007
2004
PVU
PREF
PPQ
PEP
GRI 4.9
In order to contribute to the advance to the 2nd level of the
SAST, and in response to the initiative of PEP’s representatives
in the Central Coordinator Group of Occupational Health, the
generation of standardized processes initiated in collaboration
with the DCO, PEP and Health Services. Said documents were
spread within the PEP in all its regions and in the other
Subsidiaries and corporate areas to carry out the adaptation to
be applicable in each organism and initiate the respective
operational discipline cycle.
The experiences and feedback received during the actions of
support to the implementation of the SAST, conducted to the
revision and update of the SAST manual, which, in turn, gave
place to the version 0.1 of the System of PEMEX-SSPA
Administration, which will be in force as of January 2009.
Team of Directive Leadership of Occupational Health
In August 2008, chaired by the Corporate Director of dministration,
the Team of Directive Leadership of Occupational Health (ELDST,
Spanish acronym) was integrated. The purpose of this team is to
lead, through the structured organization established by PEMEX
and Subsidiaries, the participation of the line of command in
the company, for the implementation and development of the
subsystem of administration of occupational health of the
PEMEX-SSPA system. Said group comprises, among others,
representatives of the human resources and administrative
areas, the DCO and health services.
PEMEX 2008
110
The main strategic lines established by the ELDST are
proposing the creation of standardized structures of
multidisciplinary services regarding occupational health in
operational and tactic levels, training human resources
prepared on the different multidisciplinary specialties such as
administration of occupational health services, industrial
hygiene, work ergonomics and psychology, as well as
establishing mechanisms for the coordinated participation of
the union representatives.
As regards the activities of the SAST development, health
services had an active involvement in collaboration with the
Subsidiaries within the central coordinator group. The
outstanding activities were the following:
• PEP had the task of elaborating the procedures of
identification of physical, chemical, biological, ergonomic
and psychosocial agents. With the appropriate delimitation
of the range of competence of each area involved (health
services, hygiene, safety, human resources, etc.)
• Participation in the general training course about the SAST
that PEMEX-Exploration and Production carried out at a
regional level, which enabled the appropriate integration of
the members of multidisciplinary services of occupational
health with a process system approach. This will allow
optimizing the identification of cases of workers exposed to
these agents in order to carry out medical examinations
focused on preventing health damage
• Participation with PEMEX-Refining personnel in the update of
the safety guide to carry out works in confined spaces (DGSASIPA-SI-02510), within the Workshop that took place in the
“Francisco I. Madero” refinery
• After the analysis carried out by the personnel in charge of
the SAST development, it was approved as an institutional
procedure for gathering anatomo-functional data
concerning the position’s profile. Likewise, the method to
determine position/person compatibility is developed and
used since 2003 by the medical expert services of the
Deputy Office of Health Services
Processes’ Safety Management
(ASP, Spanish acronym)
As part of the implementation of the Processes’ Safety
Management Subsystem (SASP, Spanish Acronym) the
following actions were undertaken:
• The Sub-team of Directive Leadership of Processes Safety
was formalized at a corporate level, as part of PEMEX’s
leadership team
• The ASP implementation strategy was determined
• The level of ASP implementation in Subsidiaries was
determined through auto-evaluations
• The Corporate Technical Guidelines of the 14 ASP elements
were developed
• Performance indicators were determined in order to
measure the effectiveness of the ASP implementation. The
measurement will be carried out as of January 2009
PEMEX-STPS Agreement for the incorporation of the PEMEX-SSPA system to the Automanagement
Program of Occupational Health and Safety (PASST, Spanish acronym).
On July 31, 2008, the CEO of Petróleos Mexicanos, the Secretary of Labor and the Secretary of Energy, signed the agreement for the incorporation of Work
Centers of Petróleos Mexicanos an its Subsidiaries to the Auto management Program of Occupation Health and Safety, according to which, the Work Centers or
implementation units that have reached the second level of the PEMEX-SSPA system as regards industrial occupation health and safety, may request their registry
before the labor authorities in the PASST. After the verification of compliance with 85% of the applicable STPS regulation, and the verification of a low accident
rate of the organisms or business line to which it belongs, it will grant the certification of Safe Industry at 1st level, thus having the possibility of reaching levels 2
and 3, as it achieves better levels of implementation of the SSPA and improves its accident rates and regulation compliance.
111
AIR EMISSIONS (t)
SOx
Other
Total
Total
organic
Heavy Pollutants
TSP
TOCs*
VOCs*
Emissions*
grease
TSS
Ntot
BOD
Metals
to Water
0
0
0
3
0
0
0
0
0
0
0
0
DCA-Deputy Office of Medical Services
0
2
0
0
0
2
0
0
0
0
0
0
0
0
DCA-Deputy Office of Corporate Services
0
1
0
0
0
1
0
0
0
0
0
0
0
0
612,591
59,781
992
14,146
12,981 686,345
41
222
0
0
263
114
2
265
0
1
0
0
0
1
0
0
0
0
0
0
0
0
LOGISTICS MANAGER’S OFFICE
0
0
0
0
0
0
0
0
0
0
0
0
0
0
INTEGRAL MAINTENANCE MANAGER’S OFFICE
0
1
0
0
0
1
0
0
0
0
0
0
0
0
UNIT FOR INDUSTRIAL SAFETY, ENVIRONMENTAL
PROTECTION & QUALITY
0
0
0
0
0
0
0
0
0
0
0
0
0
0
MARINE SERVICES COORDINATION OFFICE
NORTHEAST MARINE REGION
Org discharges
581,457
27,362
286
1,154
87 609,192
4
41
0
0
45
101
0
45
529,304
20,658
145
509
35 550,142
2
14
0
0
16
10
0
16
KU-MALOOB-ZAAP EXPLOITATION ASSETS
45,507
3,286
46
448
9
48,848
2
22
0
0
24
13
0
24
TRANSPORTATION AND DISTRIBUTION
OF HYDROCARBONS MANAGER’S OFFICE
6,646
3,417
96
197
43
10,202
0
4
0
0
4
77
0
4
9,253
5,640
97
914
71
15,060
35
162
0
0
197
7
2
199
341
2,249
13
541
49
2,652
34
152
0
0
185
4
2
187
8,912
3,391
83
373
22
12,408
2
11
0
0
12
3
0
12
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14,310
5,508
86
7,883
5,857
25,760
0
0
0
0
1
1
0
1
ALTAMIRA PRODUCTION
1,046
764
4
521
284
2,097
0
0
0
0
0
0
0
0
CERRO AZUL – NARANJOS PRODUCTION
7,277
173
1
86
753
8,204
0
0
0
0
0
0
0
0
CANTARELL EXPLOITATION ASSETS
SOUTHWEST MARINE REGION
TRANSPORTATION AND DISTRIBUTION OF HYDROCARBONS
Abkatun Pol-chuc Integral Assets
Tabasco’s Coastline Assets
NORTH REGION
POZA RICA PRODUCTION
4,828
1,013
31
1,087
4,351
10,223
0
0
0
0
0
0
0
0
REYNOSA - BURGOS PRODUCTION
1,156
2,557
34
5,653
335
4,082
0
0
0
0
0
0
0
0
3
1,001
15
536
134
1,153
0
0
0
0
1
1
0
1
4,397
9,212
159
3,707
6,966
20,733
0
0
0
0
0
0
0
0
VERACRUZ PRODUCTION
SOUTH REGION
CINCO PRESIDENTES INTEGRAL ASSETS
JUJO-BELLOTA INTEGRAL ASSETS
MACUSPANA INTEGRAL ASSETS
126
3,703
55
2,047
2,670
6,554
0
0
0
0
0
0
0
0
3,353
1,804
29
350
471
5,656
0
0
0
0
0
0
0
0
0
81
892
11
543
183
1,167
0
0
0
0
0
0
0
SAMARIA - LUNA INTEGRAL ASSETS
153
1,111
25
175
898
2,187
0
0
0
0
0
0
0
0
MUSPAC INTEGRAL ASSETS
684
1,457
33
448
2,743
4,917
0
0
0
0
0
0
0
0
CONSTRUCTION & MAINTENANCE MANAGER’S OFFICE
0
245
5
8
2
252
0
0
0
0
0
0
0
0
TRANSPORTATION AND DISTRIBUTION OF HYDROCARBON’S
MANAGER’S OFFICE
0
0
0
136
0
0
0
0
0
0
0
0
0
0
3,175
12,059
365
488
0
15,599
1
19
0
0
20
5
0
20
1,285
4,247
88
131
0
5,620
1
19
0
0
20
5
0
20
WELL DRILLING AND MAINTENANCE UNIT
MARINE DIVISION
112
Oil and
2
PEP
PEMEX 2008
Total
0
HEAD OFFICE
NOx
POLLUTANTS DISCHARGE INTO WATER (t)
NORTH DIVISION
980
4,605
182
227
0
5,767
0
0
0
0
0
0
0
0
SOUTH DIVISION
909
3,207
95
130
0
4,212
0
0
0
0
0
0
0
0
HAZARDOUS
HYDROCARBONS LEAKS AND SPILLS
WASTE
PRODUCTION
GHG
(Mt)
(t)
ENERGY CONSUMPTION AND PRODUCTION
Gcal
waste**
Number
Amount
Number
of spills spilled (t)***
Amount Crude process
Total Energy
CO2 Consumption
CONGENITAL WATER
m3 / t
m3
Total Energy
Total Energy
Total Energy Consumption/
Consumption
Supply /
Consumption and Crude process
and gas burning
Crude process
(t)
Hazardous
WATER MANAGEMENT
Gcal / Mt
of leaks
leaked (t)***
product
Supply
Discharges
Consumption
product
Separated
147
0
0
0
0
0
1,533
24,543
gas burning
24,543
product / Crude proc. prod.
0
0
331,703
243,123
88,626
0
0
Injected
0
145
0
0
0
0
0
1,508
24,534
24,534
0
0
331,703
243,123
88,626
0
0
0
0
0
25
9
9
0
0
0
0
0
0
0
0
8 185,792 25,703,724 40,377,345139,354,150
217
750
8,460,391
7,457,439
5,688,641
2
0
0
0
10,674.2
152
280
65
753
0
0
0
0
0
37
1,102,153
1,102,153
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,102,028
1,102,028
0
0
0
0
0
0
0
0
504
0
0
0
0
0
37
125
125
0
0
0
0
0
0
0
0
249
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
312
0
0
1
0 102,123 20,342,919 17,214,676106,206,955
169
1,040
1,183,707
845,394
772,087
12
429,425 429,425
168
0
0
0
0
66,959 17,663,162 10,077,436 95,868,607
151
1,432
342,484
294,328
477,582
5
429,425 429,425
102
0
0
0
0
35,164
1,233,132
2,849,602
5,963,323
81
170
186,913
184,854
2,059
5
0
0
42
0
0
1
0
0
1,446,624
4,287,637
4,375,025
0
0
654,310
366,213
292,446
0
0
0
278
1
1
0
0
27,196
1,567,845
7,485,585
8,703,691
275
320
1,356,872
6,268,008
777,068
50
3,033,381
0
150
0
0
0
0
0
210,171
986,020
986,020
0
0
1,108,106
6,181,421
614,889
0
3,033,381
0
121
1
1
0
0
27,196
1,357,673
6,495,961
7,714,067
239
284
244,117
82,280
161,837
9
0
0
6
0
0
0
0
0
0
3,604
3,604
0
0
4,649
4,308
342
0
0
0
50
63
98
50
1
21,423
1,171,839
3,739,058
9,859,847
175
460
2,609,357
47,288
798,275
122
0
1
0
0
0
0
68,500
140,814
140,814
0
0
0
0
0
0
0
0
0
4
14
0
0
691
246,834
8,628
840,942
12
1,217
491,829
251
275,313
711
267,675
0
0
47
78
5
0
3,271
302,572
584,814
5,770,304
179
1,764
2,008,377
0
460,848
614
50
7
0
36
0
9,895
451,868
2,320,332
2,320,332
234
234
22,075
19,989
2,086
2
1,399,650
0
0
4
5
9
0
7,566
102,065
684,470
787,455
90
104
87,076
27,048
60,028
12
249,411
0
6.1
64
162
14
7
35,050
2,023,753
9,469,057 12,114,688
270
346
1,755,371
24,463
2,033,362
19
6,908,540 553,890
4
38
34
6
5
3,042
277,932
1,430,703
2,310,509
470
760
216,708
11,016
102,748
71
1,062,538
0
0.01
13
22
1
0
10,911
644,974
2,564,599
3,977,053
235
364
373,767
4,380
369,387
5
794,174
0
0.3
0
0
1
0
2,926
107,674
475,261
475,261
162
162
0
0
0
0
107,351
0
0.2
3
19
1
0
5,064
372,873
1,845,180
1,866,226
364
369
209,698
2,146
608,170
41
2,431,129 553,890
2
6
54
2
0
13,107
535,971
2,661,408
2,993,732
203
228
948,615
0
948,615
72
2,513,348
0
0
0
0
0
0
0
84,328
446,659
446,659
0
0
0
0
0
0
0
0
0
4
34
3
2
0
0
45,247
45,247
0
0
6,584
6,921
4,442
0
0
0
9,276
24
20
0
0
0
597,331
1,366,816
1,366,816
0
0
1,555,084
272,286
1,307,849
0
0 147,359
1,298
24
20
0
0
0
218,027
751,734
751,734
0
0
1,213,511
219,586
997,110
0
0
7,359
0
0
0
0
0
210,205
355,864
355,864
0
0
297,238
11,029
286,406
0
0 147,359
619
0
0
0
0
0
169,099
259,218
259,218
0
0
44,336
41,671
24,333
0
0
35 14,104,376 1,750,846
0
3,733,030 620,172
1,816,294 620,172
0
113
0
AIR EMISSIONS (ton)
POLLUTANTS DISCHARGE INTO WATER (ton)
Total
Total
SOx
PPQ
CAMARGO
CANGREJERA
NOx
TSP
Heavy
TOT
TOCs*
VOCs*
Emissions*
O&G
TSS
Ntot
Org discharges
BOD
Metals
water co
592
579
7,971
587
1,722
2,392
11,530
81
459
24
14
578
333
13
0
0
0
0
0
0
0
0
0
0
0
0
0
0
23
3,097
225
1,068
1,221
4,565
54
241
10
5
311
70
4
315
COSOLEACAQUE
4
1,356
51
88
35
1,446
5
9
0
0
14
13
0
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ESCOLIN
0
289
6
107
6
301
0
0
0
0
0
0
0
0
INDEPENDENCIA
190
443
44
224
73
750
7
11
6
2
26
18
1
26
MORELOS
344
1,897
208
182
959
3,408
0
159
8
7
174
79
8
182
PAJARITOS
19
885
43
45
95
1,043
15
38
0
0
53
153
1
54
REYNOSA
0
0
0
0
0
0
0
0
0
0
0
0
0
0
TULA
0
5
9
8
2
17
0
0
0
0
1
0
0
1
34,262
9,772
679
13,738
2,220
46,933
80
230
54
5
368
333
1
369
Pipelines Deputy Office
0
406
10
287
3
419
0
0
0
0
0
0
0
0
Liquefied Gas and Basic Petrochemicals
Deputy Office
0
2
0
34
0
2
0
0
0
0
0
0
0
0
34,261
9,364
669
13,416
2,218
46,512
80
229
54
4
368
333
1
368
80
557
34
117
552
1,224
0
1
0
0
1
1
0
1
1,619
4
1
5
0
1,624
0
0
0
0
0
0
0
0
Production Deputy Office
CPG AREA COATZACOALCOS
CPG ARENQUE
CPG BURGOS
0
599
14
127
145
758
0
0
0
0
0
0
0
0
CPG CACTUS
15,436
2,172
214
11,368
322
18,143
9
65
16
0
90
99
0
90
8,957
1,708
92
280
159
10,915
0
0
0
0
0
0
0
0
0
508
16
63
137
660
1
5
1
0
7
6
0
7
CPG CD. PEMEX
CPG LA VENTA
CPG MATAPIONCHE
2,983
41
14
105
19
3,056
0
0
0
0
1
0
0
1
CPG NVO. PEMEX
2,450
2,811
230
796
558
6,049
58
123
33
3
218
187
0
218
CPG POZA RICA
2,736
590
33
329
78
3,437
6
22
3
1
32
34
0
32
1
374
21
228
249
645
4
13
1
0
19
6
0
19
298,723
31,192
17,227
4,067
32,829 379,971
166
813
263
35
1,277
526
12
1,294
7
18
1
21
2,598
2,624
1
2
1
0
4
4
0
4
Distribution Deputy Office
7,131
4,727
115
272
7,128
19,101
4
16
3
13
35
23
0
36
Production Deputy Office
291,586
26,446
17,111
3,774
23,103 358,246
160
795
260
23
1,237
499
12
1,254
AZCAPOTZALCO EXREFINERY
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28,370
3,558
2,618
1,996
8,667
43,212
40
140
11
1
191
39
3
193
2,890
21
CPG REYNOSA
PREF
Warehouse and Distribution Deputy Office
FRANCISCO I. MADERO REFINERY
GRAL.LAZARO CARDENAS REFINERY
ING. ANTONIO DOVALI JAIME REFINERY
ING. ANTONIO M. AMOR REFINERY
28,143
2,896
1,974
1,050
35,903
6
11
3
0
20
17
0
106,274
6,255
5,151
180
1,851 119,532
8
35
0
0
43
29
1
44
27,450
4,485
1,650
186
4,972
37
140
78
12
267
121
3
275
38,557
ING. HECTOR R. LARA SOSA REFINERY
24,771
3,520
1,648
166
913
30,852
45
311
126
6
488
128
2
490
MIGUEL HIDALGO REFINERY
76,578
5,732
4,071
195
3,809
90,189
25
158
42
4
228
167
3
231
946,156
108,718
19,485
33,673
50,422 1,124,782
367
1,723
342
54
2,486
1,307
27.8
2,519
TOTAL
* The data of TOCs and VOCs emmissions are out of the assurance’s scope
** The hazardous waste generation excludes used oils and drill cuttings as these are considered Special Waste Management
*** Estimated ammount
114
organic
CRAE AREA COATZACOALCOS
PGPB
PEMEX 2008
Other
HAZARDOUS
HYDROCARBONS LEAKS AND SPILLS
WASTE
PRODUCTION
GHG
(Mt)
(t)
ENERGY CONSUMPTION AND PRODUCTION
Gcal
Number
Amount
waste**
of spills
spilled (t)
Number of
Amount Crude process
leaks leaked (t)***
product
Total Energy
CO2
Consumption
CONGENITAL WATER
m3/ton
m3
Total Energy
Total Energy
Total Energy Consumption/
Consumption
(t)
Hazardous
WATER MANAGEMENT
Gcal / Mt
Consumption Crude process and gas burning/
and gas burning
6,963,812 27,111,593 27,190,800
product Crude proc. prod.
Discharges
Consumption process product
23,395.86
0
0
1
2
6,634
4.07
0
0
0
0
0
218
0
0
0
0
2,669
2,759,433 13,034,604 13,090,803
4,884
4,905 21,613,520
5
0
0
1
2
1,032
1,709,974
3,057,532
3,057,532
2,964
2,964
9,829,314
690,806
9,138,508
0
0
0
0
0
0
0
0
0
0
0
0
0
0
126
0
0
0
0
0
99,412
422,001
434,005
0
0
12,840
8,706
447
0
0
0
0
55
273,743
1,612,160
1,613,327
29,402
29,423
1,979,930
801,300
1,256
0
0
0
0
2,183
1,686,602
7,305,025
7,314,550
3,347
21,314
0
0
0
0
697
426,721
1,635,272
1,635,585
0
0
0
0
0
0
0
0
0
7,927
44,999
44,999
0
6,631,044 23,941,382 31,798,338
496
0
0
0
4,086
Supply / Crude
Supply
Separated
Injected
8,582
0
0
0
0
0
0
7,898,684 13,697,233
8,099
0
0
9,527
0
0
0
0
0
4,134
0
0
0
1,271,801
36,109
0
0
3,351 19,735,625 10,688,282 11,285,797
9,042
0
0
2,348
2,348
3,684,116
2,540,338
1,112,079
5,289
0
0
0
0
0
0
0
0
0
0
0
79,166
50,645
28,901
0
0
0
659 41,996,372 11,375,528 21,825,172
870
0
0
0
4,098 56,934,511 22,678,761 36,538,453
0
0
0
27
0
0
0
0
0
2,822.7
0
0
16
70
48,246
1,429
0
0
15
7
0
147,161
777,542
7,991,391
0
0
174,738
80,131
95,101
0
0
0
4
0
0
1
63
0
715
69,423
75,513
0
0
86,277
5,576
64,670
0
0
0
1,390
0
0
0
0
48,246
45
0
0
0
0
5,986
479
492 41,735,357 11,289,821 21,665,402
865
0
0
1,367,315
228
228
436,621
179
0
0
0
0
0
0
0
180
12,834
7
0
0
0
0
5,669
245,761
54,812
58,592
305
1,388,975
1,531,236
245
246
0
0
0
0
13,696
2,103,519
385
0
0
0
0
7,497
1,081,271
6,252,712
6,252,712
3,206,035
3,215,892
45
0
0
0
0
1,207
171,835
861,185
54
0
0
0
0
430
61,741
84
0
0
0
0
12,103
121
0
0
0
0
404
0
0
0
0
51,123.7
75
1,644
20
1
1,160
1
7
0
0
6,483,167 23,094,416 23,731,434
281,275
1,367,315
1,074,433
42,099
326
5,429
4,238
1,191
30
0
0
270
41,738
0
41,738
7
0
0
457
457 11,693,535
3,551,292
6,155,824
854
0
0
428
429
6,555,839
9,100
5,214,552
874
0
0
863,677
714
716
388,015
156,488
243,867
322
0
0
246,207
246,207
572
572
399,925
112,680
287,245
930
0
0
2,129,088
8,037,750
8,037,750
664
664 13,872,188
6,183,118
7,646,564
1,146
0
0
645
262,415
1,039,784
1,515,295
1,613
834
133,427
639,642
642,759
767
66,036 15,619,860 63,607,254 67,706,523
963
0
3,932
370,267
370,267
0
862,236
4,328,962
4,328,962
0
66,036 14,753,692 58,908,025 63,007,295
892
1,298
73
1,087
20
1
48,665.7
1
551
0
0
0
0
0
0
0
0
0
0
0
0
0
545
0
0
0
0
8,011
2,444,032 10,444,410 10,859,299
17,242
0
0
0
0
8,451
1,533,828
2,969
0
0
0
0
11,792
0
0
0
0
2,350
6,766,400
796,043
1,078,380
10,493
0
0
771
937,854
434,763
559,418
1,125
0
0
1,025130,042,074 42,146,086 88,956,663
1,969
0
0
0
0
0
0
0
1,287,824
217,796
923,713
0
1,295,991
581,493
939,123
0
0
954127,458,259 41,346,798 87,093,828
1,930
0
0
0
0
0
0
0
0
0
1,304
1,356 18,137,976
5,820,430 12,000,590
2,264
0
0
7,007,414
803
829 15,063,059
6,475,908
8,345,605
1,782
0
0
14,812
3,099,298 11,355,377 12,856,157
767
868 23,900,547
4,287,829 18,940,123
1,614
0
0
10,388
2,472,258 10,286,430 10,961,873
990
1,055 22,846,811
6,319,052 19,555,920
2,199
0
0
6,788,346
4,855
1
551
0
0
10,753
2,079,447
9,258,461
794
861 19,348,916
3,803,226 15,708,605
1,799
0
0
11,262
0
0
0
0
13,621
3,124,829 11,493,195 12,064,091
844
886 28,160,950 14,640,353 12,542,984
2,067
0
0
88,163.3
227
1,924
102
80
306,708
54,919,972 155,062,117 266,074,355
506
868 237,765,051
653
14,104,376 1,750,846
115
83,900,937 153,097,555
8,540,268
GRI INDEX
IGRI G3 Indicator
Strategy and Analysis
Commitments to External Initiatives
Page
MANAGEMENT APPROACH TO THE ORGANIZATION
14, 16
1.1
Statement from the most senior decision maker of the organization
6, 7
1.2
Description of key impacts, risks, and opportunities
16
4.11
Explanation of whether and how the precautionary approach or principle is
addressed by the organization
26, 31, 82, 96
4.12
16, 91
4.13
Externally developed economic, environmental, and social charters, principles, or
other initiatives to which the organization subscribes or endorses
Memberships in associations (such as industry associations) and/or
national/international advocacy organizations
Stakeholder Engagement
4.14
List of stakeholder groups engaged by the organization
4.15
Basis for identification and selection of stakeholders with whom to engage
4.16
Approaches to stakeholder engagement
4.17
Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to them
Organizational Profile
2.1
Name of the organization
2.2
Primary brands, products, and/or services
2.3
Operational structure of the organization, including main divisions, operating
companies, subsidiaries, and joint ventures
1
2, 3, 4, 5, 100
1a5
2.4
Location of organization’s headquarters
2.5
Number and names of countries where the organization operates
1a5
1
1, 34
2.6
Nature of ownership and legal form
2.7
Markets served (including geographic breakdown, sectors served, and types
of customers/beneficiaries)
2.8
Scale of the reporting organization (employees, net sales or net revenues,
products, services, assets)
26, 28, 64,
1 a 5, 20
2.9
Significant changes during the reporting period regarding size, structure,
or ownership
18, 29, 43
2.10
Awards received in the reporting period
68, 83
Reporting period (e.g., fiscal/calendar year) for information provided
8
3.2
Date of most recent previous report (if any)
9
3.3
Reporting cycle (annual, biennial, etc.)
8
3.4
Contact point for questions regarding the report or its contents
120
Process for defining report content (materiality, prioritizing topics, identifying
stakeholders)
8
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers)
8
3.7
State any specific limitations on the scope or boundary of the report
9
3.8
Basis for reporting on joint ventures, subsidiaries, outsourced operations
9
3.9
Data measurement techniques and the bases of calculations
9
3.10
Explanation of the effect of any re-statements of information provided in
earlier reports, and the reasons for such re-statement
9
Significant changes from previous reporting periods in scope or boundary
9
3.11
GRI Content Index
3.12
Table identifying the location of the Standard Disclosures in the report
116 , 117
Assurance
3.13
External assurance for the report
111
Governance
4.1
Governance structure of the organization
34
4.2
Indicate whether the Chair of the highest governance body is also an
executive officer
34
4.3
State the number of members of the highest governance body that are
independent and/or non-executive members
34
4.4
Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance body
34
4.5
Linkage between compensation for members of the highest governance
body and the organization’s performance
Processes in place for the highest governance body to ensure conflicts of
interest are avoided
34
Process for determining the qualifications and expertise of the members of
the highest governance body
34, 39
PEMEX 2008
116
4.6
4.7
4.8
4.9
4.10
34
Internally developed statements of mission or values, codes of conduct, and 14, 16, 18, 39, 95
principles relevant to economic, environmental, and social performance and
the status of their implementation
Procedures of the highest governance body for overseeing the organization’s
35, 48, 95 , 106,
identification and management of economic, environmental, and
107,109
social performance
Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance
17, 30, 35, 36,
45, 83
17
17, 43
9, 10, 17
6, 14
EC1
Direct economic value generated and distributed
20, 22
EC2
58, 61
EC3
Financial implications and other risks and opportunities for the
organization’s activities due to climate change
Coverage of the organization’s defined benefit plan obligations
EC4
Significant financial assistance received from government
68
20
Market Presence
EC5
Range of ratios of standard entry level wage compared to local minimum
wage at significant locations of operation
71
EC6
Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation
22
EC7
Procedures for local hiring and proportion of senior management hired from
the local community at locations of significant operation
67
Report Scope and Boundary
3.5
17
Economic Performance
21
Report Profile
3.1
MANAGEMENT APPROACH TO THE ECONOMIC INDICATORS
19
Indirect Economic Impacts
EC8
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in kind, or pro
bono engagement
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts
MANAGEMENT APPROACH TO THE ENVIRONMENTAL INDICATORS
91, 93, 95
94
58, 74, 82
Materials
EN1
Direct energy consumption by primary energy source
87
EN2
Percentage of materials used that are recycled input materials
87
Energy
EN3
Direct energy consumption by primary energy source
59
EN4
Indirect energy consumption by primary source
59
EN5
Energy saved due to conservation and efficiency improvements
60
EN6
Initiatives to provide energy-efficient or renewable energy based products and
services, and reductions in energy requirements as a result of these initiatives
60
EN7
Initiatives to reduce indirect energy consumption and reductions achieved
60
Water
EN8
Total water withdrawal by source
85
EN9
Water sources significantly affected by withdrawal of water
85
EN10
Percentage and total volume of water recycled and reused
85
Biodiversity
EN11
Location and size of land owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected areas
75
EN12
Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas
76
EN13
Habitats protected or restored
76, 78, 79
EN14
Strategies, current actions, and future plans for managing impacts
on biodiversity
74, 76, 77
EN15
Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk
76
Emissions, Effluents, and Waste
MANAGEMENT APPROACH TO HUMAN RIGHTS INDICATORS
EN16
Total direct and indirect greenhouse gas emissions by weight
58
EN17
Other relevant indirect greenhouse gas emissions by weight
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
EN19
Emissions of ozone-depleting substances by weight
59
EN20
NO, SO, and other significant air emissions by type and weight
84
EN21
Total water discharge by quality and destination
86
EN22
Total weight of waste by type and disposal method
86
EN23
Total number and volume of significant spills
78
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous
EN25
Identity, size, protected status, and biodiversity value of water bodies
and related habitats significantly affected by the reporting organization’s
discharges of water and runoff
59
Percentage of products sold and their packaging materials that are
reclaimed by category
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
Significant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce
Overall
EN30
Total environmental protection expenditures and investments by type
MANAGEMENT APPROACH TO LABOR PRACTICES AND DECENT
WORK INDICATORS
52
HR3
Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including the
percentage of employees trained
Total number of incidents of discrimination and actions taken
65, 66
HR4
HR5
HR7
78, 102
87
HR8
HR9
42
42
Operations identified in which the right to exercise freedom of association
and collective bargaining may be at significant risk, and actions taken to
support these rights
Operations identified as having significant risk for incidents of child labor,
and measures taken to contribute to the elimination of child labor
71
Operations identified as having significant risk for incidents of forced or
compulsory labor, and measures to contribute to the elimination of forced
or compulsory labor
Percentage of security personnel trained in the organization’s policies or
procedures concerning aspects of human rights that are relevant to operations
64
Total number of incidents of violations involving rights of indigenous people
and actions taken
42
MANAGEMENT APPROACH TO SOCIETY INDICATORS
64
69
16, 90
Social
Transport
EN29
Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken
HR6
Compliance
EN28
HR2
28, 78, 105
22
64, 106, 109
Labor Practices
LA1
Total workforce by employment type, employment contract, and region
64
LA2
Total number and rate of employee turnover by age group, gender, and
region
67
LA3
Benefits provided to full-time employees that are not provided to temporary
or part-time employees, by major operations
LA4
Percentage of employees covered by collective bargaining agreements
67
LA5
Minimum notice period(s) regarding operational changes, including whether
it is specified in collective agreements
71
68, 70, 95
LA6
Percentage of total workforce represented in formal joint management–
worker health and safety committees
47, 71
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and
number of workrelated fatalities by region
49, 52
LA8
LA9
Education, training, counseling, prevention, and risk-control programs in
place to assist workforce members, their families, or community members
regarding serious diseases
Health and safety topics covered in formal agreements with trade unions
52, 71
LA10
Average hours of training per year per employee by employee category
47, 69
LA11
Programs for skills management and lifelong learning that support the
employability of employees and assist them in managing career endings
69
LA12
Percentage of employees receiving regular performance and career
development reviews
70
LA13
Composition of governance bodies and breakdown of employees by gender,
age group, minority group membership, and other indicators of diversity
LA14
Ratio of basic salary of men to women by employee category
SO1
Impacts of operations on communities, including entering, operating and exiting
SO2
Percentage and total number of business units analyzed for risks related
to corruption
36
SO3
Percentage of employees trained in organization’s anti-corruption policies
and procedures
39, 69
SO4
Actions taken in response to incidents of corruption
SO5
Public policy positions and participation in public policy development
and lobbying
36, 40
SO6
Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country
39
SO7
Número total de acciones por causas relacionadas con prácticas monopolísticas y contra la libre competencia, y sus resultados
39
SO8
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations
42
MANAGEMENT APPROACH TO PRODUCT RESPONSIBILITY INDICATORS
39
26, 102
Product Responsibility
PR1
Life cycle stages in which health and safety impacts of products and services
are assessed for improvement
103
PR2
Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their life cycle, by type of outcomes
Type of product and service information required by procedures, and percentage
of significant products and services subject to such information requirements
42
51
PR3
64, 65, 66
50, 55, 96
101, 102, 105
PR4
codes concerning product and service information and labeling
PR5
Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction
104
PR6
Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, and
sponsorship
codes concerning marketing communications
39
PR8
Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data
42, 104
PR9
Monetary value of significant fines for noncompliance with laws and
regulations concerning the provision and use of products and services
PR7
64
42, 104
42
42
117
EN27
39
Initiatives to mitigate environmental impacts of products and services, and
extent of impact mitigation
Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening
76, 77
EN26
HR1
61, 83
87
65, 66
Human Rights
The following index describes the relation between the GRI
Indicators and the United Nations Global Compact Principles. This
relation was made following the guidance “Making the
Connection”, document that introduces and explores ways to
address GRI and Global Compact requirements simultaneously.
http://www.unglobalcompact.org/COP/
United Nations Global Compact Principles
GRI Indicator
Chapter
Human Rights
GC1
Businesses should support and respect the protection of
internationally proclaimed human rights
EC5, LA4, LA6-9,
LA13, LA14, HR1-9,
SO5, PR1, PR2, PR8
Health and Safety
GC2
Businesses should make sure they are not
complicit in human rights abuses
HR1-9, SO5
Health and Safety
GC3
Businesses should uphold the freedom of association and the
effective recognition of the right to collective bargaining
LA4, LA5, HR1-3, HR5,
SO5
Health and Safety
GC4
Businesses should uphold the elimination of all forms of
forced and compulsory labour
HR1-3, HR7, SO5
Health and Safety
GC5
Businesses should uphold the effective
abolition of child labour
HR1-3, HR6, SO5
Health and Safety
GC6
Businesses should uphold the elimination of discrimination
in respect of employment and occupation
EC7, LA2, LA13, LA14,
HR1-4, SO5
Health and Safety
Labour
Environment
GC7
Businesses should support a precautionary approach to
environmental challenges
EC2, EN18, EN26,
EN30, SO5
Climate Change
GC8
Businesses should undertake initiatives to
promote greater environmental responsibility
EN1-30, SO5, PR3,
PR4
Supply Security
Climate Change
GC9
Businesses should encourage the development and diffusion of environmentally friendly technologies
EN2, EN5-7, EN10,
EN18, EN26, EN27,
EN30, SO5
Climate Change
SO2-6
Anti-corruption
PEMEX 2008
118
GC10
Businesses should work against corruption in all its forms,
including extortion and bribery
Glossary
119
NOM-148-SEMARNAT-2006: Official Mexican Standard related to atmospheric
contamination. Recovery of sulfur derived from oil refining processes.
OHSAS: Evaluation specifications for Occupational Health and Safety
Management Systems. It was developed in response to the need for
companies to efficiently comply with health and safety obligations.
Oils and greases (O & G): Any material that can be recovered as a soluble
substance in the following solvents: n-hexane, trichlorotrifluoroethane or a
mix of 80% n-hexane and 20% methyl tertiary butyl ether.
Oily mud: Solid waste with hydrocarbon content, such as crude oil’s
congenital solids, hydrocarbons that impregnate the ground, sediments of
hydrocarbon containment systems (tanks, septic tanks, dams, etcetera).
Outsourcing Index: Total of outsourcing deaths within PEMEX facilities.
Phenols: Class of chemical compounds consisting of a hydroxyl group
attached to an aromatic hydrocarbongroup.
PIDIREGAS: These are long-term productive infrastructure projects. The
difference between PIDIREGAS and Non-PIDIREGAS expenses is
significant in terms of budgetary matters, as the PIDIREGAS designation
guarantees that financing for a project is immune to budgetary cutbacks.
PEMEX finances its annual budget (without including PIDIREGAS) through
revenues generated by its financial operations and activities. Capital expenses are assumed by PEMEX and its Subsidiaries. Capital investments and
operating expenses must be authorized in PEMEX’s annual budget, which is
in turn, approved by Congress.
Portage: electrical energy transfer from cogeneration plants that cover the
required thermal energy demand.
Restoration: Environmental restoration aims to eliminate, reduce or control risks
to human health and the environment at sites that are environmentally affected.
Severity Index (SI): Reference to the number of work days lost due to accidents that lead to disability and demise in a period that includes one million
man hours of exposure to the risks, worked in a certain period, that do
not include accidents to and from work and those work accidents caused by
third parties and/or unsafe conditions that are out of PEMEX’s control.
Sour gas: Natural gas containing significant amounts of hydrogen sulfide
that requires treatment to be used as a fuel.
Subsidiaries: PEMEX-Exploration and Production, PEMEX-Refining, PEMEXGas and Basic Petrochemicals, PEMEX-Petrochemicals.
Sulfur oxides (SOx): Generic term for sulfur oxides. Compounds generated by
energetic combustion processes that contain sulfur compounds. They contribute
to the acid rain phenomenon. The Council on Environmental Quality (CEQ) and
the agencies are responsible for the proposed actions or projects.
Sustainable Development: Development which meets the needs of the present without compromising the ability of future generations to meet their own
needs. (UN’s Bertrand Report).
Total Suspended Particles (TSP): Finely divided solid material produced by
the combustion of gasoline or other fuels, or derived from mineral and metal
powder, paint pigmentations, pesticides, soot and smoke from burnt oils.
Turnover Index: Number of employees that leave the organization / total
number of employees X 100).
United Nations Global Compact: Initiative that aims to spread among organizations, the commitment to environmental and labor commitments, the protection
of human and the fight against corruption. In order to obtain the closest number
of employees that left the organization during 2007, the profiles
Volatile organic compounds (VOC): A carbon-containing compound that
vaporizes at a relatively low temperature, including sulfur content products.
Methane is not considered as a VOC. In the atmosphere VOCs can
react with other gases in the presence of sunlight to form ozone or other
photochemical oxidants.
Workers: The organization’s union, non-union workers and staff members.
AA1000: Procedural norm that guarantees the transparent quality of
accountability, evaluation and disclosures concerning the social and ethical
aspects of corporate management.
Biofuel: Any fuel that is derived from organic material or metabolic waste.
Carbon dioxide (CO2): Greenhouse gas produced by the oxidation of
carbon compounds.
Catalyzers: Substances that accelerate a chemical reaction but remain
unchanged by it. It increases the rate of the reaction at lower temperatures,
and remains static through the end of the reaction. However, spent catalysts
must be periodically replaced in industrial processes to ensure efficient
production levels.
Clean Mechanism Development (CMD): Is an arrangement under the Kyoto
Protocol allowing industrialized countries with a greenhouse gas reduction
commitment (Annex 1) to invest in projects that reduce emissions in
developing countries as an alternative to more expensive emission
reductions in their own countries.
Cogeneration: Generation of electric power and heat using a combined system.
Cryogenic Plant: A gas processing plant which is capable of producing
natural gas liquids products, including ethane, at very low operating
temperatures.
Drilling cuts: Dirt and rocks removed during exploration and production well
drilling operations. The cuts are impregnated with oil as the come in contact
with drilling mud.
Drilling spud: A mixture of clays and chemicals and water; pumped down
the drill pipe to lubricate and cool the drilling bit and to flush out the cuttings
and to strengthen the sides of the hole and control the ascending flow of
crude oil to gas.
Ecological balance: State of dynamic equilibrium within a community
of organisms in which genetic, species and ecosystem diversity remain
relatively stable, subject to gradual changes through natural succession.
Effluent: The wastewater discharge from industrial facilities.
Environmental impact: Any environmental change, positive or negative,
partially or fully derives from activity, products or services.
Environmental Impact Studies: document prepared to provide a brief
summary of environmental coordination, impacts and benefits and is
published for comment and review. An EIA must comply with the National
Environmental Policy Act (NEPA) requirements.
Fatality Index: The ratio of total deaths to total population in a specified
community or area over a specified period of time that is one year within PEMEX.
Frequency Index (FI): Reference to the number of accidents that lead to
disability and demise in a period that includes one million man hours of
exposure to the risks, worked in a certain period, that do not include
accidents to and from work and those work accidents caused by third
parties and/or unsafe conditions that are out of PEMEX’s control.
Fugitive emissions: Emissions that escape an allegedly closed system.
Fugitive emissions generally include volatile organic compounds.
Gigajoule (GJ): Energy unit equal to 1,000,000,000 joules (1 Calorie=
4,184 joules).
Global Reporting Initiative / GRI / GRI G3: Sustainability reporting guidelines.
Greenhouse gases (GHG): Gases, whose presence in the atmosphere
contributes to potential climate change. The greenhouse gases group
includes the following: Water vapor (H2O). Carbon dioxide (CO2). Methane
(CH4). Nitrous oxide (N2O). Ozone (O3) and Chlorofluorocarbons (CFC).
ISO 14001: International standard that establishes a process to control
and improve environmental management. ISO 14001 is the international
standard that is recognized by the Environmental Management
System (EMS).
ISO 9001: Certifiable Quality Management Standard. Kyoto Protocol:
International agreement that went into force in 1997 through which
developed countries commit to reduce their greenhouse gas emissions to
stabilize the concentration of these atmospheric gases at a level prevents
dangerous interferences with climate changes.
Materiality principle: Applied to matters of sustainability or corporate
responsibility. Reference is made to the significance or relevance the
different aspects related to corporate responsibility have for the business.
Methane (CH4): Is considered a greenhouse gas. It is not included in the
category of so-called volatile organic compounds, due to convection.
Mitigation: Series of actions that minimize the atmospheric emissions and
discharges
Nitrogen oxides (NOx): Generic term for nitrous oxides. Gas compounds
generated during the combustion process, due to the oxidation of the
nitrogen that is found in the air. They contribute to the formation or
troposphere ozone and the acid rain phenomenon.
NOM-001-SECRE-2003: Official Mexican Standard on natural gas
characteristics and specifications.
NOM-001-SEMARNAT-1996: Official Mexican Standard that establishes the
maximum limits of pollutants allowed in wastewater effluents into national
waters or assets.
NOM-005-SCFI-2005: Official Mexican Standard related to measurement
instruments – system to measure and dispatch gasoline and other liquid
fuels. Testing and assurance specifications and methods.
NOM-019-STPS-2004: Official Mexican Standard on constitution, organization
and operation of the safety and health commissions at the work centers.
NOM-020-STPS-2002: Official Mexican Standard on “Boilers and containers
that are subject to pressure. Safety operations and conditions”.
NOM-026-STPS-1998: Official Mexican Standard on “health and safety colors
and signage, and the identification of the risk represented by the fluids that flow
through pipelines.”
NOM-085-SEMARNAT-1994: Official Mexican Standard on environmental
pollution.
Fixed sources: for fixed sources that use solid, liquid or gas fossil fuels or any
of their combinations, which establish the maximum level of smoke and particle
emissions that are allowed to enter the atmosphere.
NOM-137-SEMARNAT-2002: Official Mexican Standard related to atmospheric
pollution. Desulphurization plants for gas and condensed sour compounds.
Emission control of sulfur compounds.
GRI 3.4
Acronyms and
Abbreviations
3P: Proven, probable and possible (reserves)
ARPEL: Association of Gas and Oil companies of
Latin America and Caribbean
ATG: Gulf Tertiary Oil
CAISSPA: Inter-subsidiaries Commission of SSPA
CCAE: Emergency Coordinating Center
CDI: Chemical Distribution Institute
CDM: Clean Development Mechanism
CEMDA: Mexican Center of Environmental Law
CENDI: Children’s Development Centers
CEO: Chief Executive Officer
CRE: Certified Emission Reduction
CESIPAM: Social and Full Service Centers for
Senior Citizens
CESPEDES: Commission of Studies in Private
Enterprise Sector for Sustainable Development
CFE: Federal Electrical Commission
CIFA: Social and Full Service Centers for
Senior Citizens
CLMSH: Local Mixed Commissions on Health
and Safety
CNBV: National Banking and Securities Commission
CNDH: National Commission of Human Rights
CNMSH: National Mixed Commission on Health
and Safety
CONANP: National Commission of Protected
Natural Areas
CONAPRED: the National Council to Prevent
Discrimination
CoP: Communication on Progress
CPG: Gas Processing Complex
CPQ: Petrochemical Complex
DCIDP: Corporate Engineering and Project
Development Office
DCA: Corporate Administration Office
DCF: Corporate Finance Office
DCO: Corporate Operations Office
DO: Operational Discipline
DWT: Deadweight tonnage
EBIS: European Barge Inspection Scheme
EIP: Energy Industry Partnership
EITI: Extractive Industries Transparency Initiative
Em Net: Emerging Markets Network
EPA: Environmental Protection Agency
ERPA: Emission Reduction Purchase Agreement
Gcal: Gigacalory
GHG: Greenhouse Gas
GPC: Citizen Participation Group
GRAME: Regional Emergency Response and
Management Groups
GRI: Global Reporting Initiative
GRI G3: Global Reporting Initiative Sustainability
Reporting Guidelines
ILO: International Labor Organization
ICB: Internal Control Body
IFQC: International Fuel Quality Center
IPIG: Instrumented Pipeline Inspection Gauge
IPT: Transparency Perception Rate
IMAC: Mechanical Integrity and Quality
Assurance
IMP: Oil Mexican Institute
INMUJERES: National Women’s Institute
Intertanko: International Association of
Independent Tanker Owners
LCA: Life Cycle Assessment
LyFC: Light and Power Company
M2M: Methane to Markets Initiative
Mbd: Thousands of barrels
Mis-RH: Full Service Human Resources Module
MDG: Millennium Development Goals
MMbd: Millions of barrels per day
MMbpce: Millions of barrels of oil equivalent
MM$: Millions of Pesos
MMM$: Billions of Pesos
MMpcd: Millions of cubic feet per day
Mt: Thousands of metric tons
MMt: Millions of tons
MMUS$: Millions of US Dollars
MMMUS$: Billions of US Dollars
MW: Megawatts
NGO: Non-governmental Organization
NOC Forum: National Oil Company Forum
NRU: Nitrogen Rejection Unit
OECD: Organization for Economic Co-operation
and Development
OCIMF: Oil Companies International
Marine Forum
OET: Ecological Land Management
PATG: Gulf Tertiary Oil Project
PECC: Special Program of Climate Change
PEMEX: Petróleos Mexicanos
PEP: PEMEX-Exploration and Production
PGPB: PEMEX-Gas and Basic Petrochemicals
PGR: General Attorney’s Office
PND: National Development Plan
PNUD: United Nations Development Programme
POET: Ecological Land Management Project
PPQ: PEMEX-Petrochemicals
PREF: PEMEX-Refining
PROFEPA: Federal Environmental Protection Office
PTAR: Wastewater Treatment Plant
PVU: PEMEX Verification Unit
RBI: Risk Based Inspections
RBMA: Montes Azules Biosphere Reserve
RBPC: Pantanos de Centla Biosphere Reserve
RSS: Really Simple Syndication
SAA: Environmental Management Subsystem
SASP: Processes’ Safety Management Subsystem
SAST: Occupational Health Management
Subsystem
SCADA: Supervisory Control and Data Acquisition
SDOSSPA: Deputy Office of Operational Discipline,
Safety, Health and Environmental Protections
SEC: Securities and Exchange Commission
SEDENA: Secretariat of Defense
SEMARNAT: Secretariat of Environment and Natural
Resources
SENER: Secretariat of Energy
SIDP: Projects Development Comprehensive System
SGP: Management System by Processes
SHCP: Treasury Department
SIADI: Institutional System on Individual
Performance Management
SICORI: Corporate Information System
SIFIVI: Comprehensive Housing Financial System
SIM: see SIMCOT
SIMCOT: Terminal Measurement and Control
System
SISPA: Information System on Environmental
Safety and Protection
SME: Small and medium enterprises
SNR: National Refining System
SSPA: Safety, Health and Environmental Protection
STPRM: Mexican Oil Labor Union
STPS: Secretariat of Labor and Social Welfare
t: Tons
TM: Maritime Terminal
TSP: Total Suspended Particles
UBA: Ultra-low Sulfur
WBCSD: World Business Council for Sustainable
Development
WEF: World Economic Forum Energy
WPC: World Petroleum Council
WRI: World Resource Institute
Your opinion MATTERS
PEMEX 2008
120
The views of our readers’ comments are important. Any suggestion or concern with respect to this Report may be
addressed through any of the following means:
• Email: [email protected]
• Webpage: http://desarrollosustentable.Pemex.com/index.cfm?action=feedback
• Phone: +0052.55.19448946
• Fax: +0052.5519449071
• Postal service, to the responsible for this Report: Dirección Corporativa de Operaciones Torre Ejecutiva, piso 39. Av.
Marina Nacional # 329, Colonia Huasteca C.P.11311, México, D.F.
Likewise, you will find complementary information to this Report in PEMEX’s portal (www.pemex.com),
“Desarrollo Sustentable” section. Previous Reports are available in the Web site: http://desarrollosustentable.pemex.com
Comments are appreciated, and will be very helpful for the next Report elaboration.
GRI 2.3, 2.8, 2.1, 2.4, 2.6, 2.2
In order to mitigate the greenhouse gas emissions from the elaboration and dissemination of this Report, staff from Petróleos Mexicanos participated in the acquisition of 40 metric tons of carbon
dioxide. These represent the estimated amount to compensate the
carbon ecological footprint.*
Maudiel Aguilar Domínguez
Diana Alvarez Gómez
Adalberto Arroyo Ramírez
Martha Avelar Villegas
Pedro Edmundo Aguirre Castro
Jaime Alba González
Lamberto Alonso Calderón
Oscar Alva Rodas
Antonio Álvarez Moreno
Teresa Aragón Gómez
Armando Arenas Briones
Jorge Arriaga Cervantes
Francisco Arellano Urbina
Juan Avila González
José Antonio Barbero del Río
Luis Betancourt Sánchez
Javier Bocanegra Reyes
Andrés Brugmann Balmaseda
Victoriano Sinue Calderón Merino
Ma. De las Nieves Carbonell León
Ulises Cardona Torres
Heira Jasive Castañeda López
Yuri Alexei Carreño
Jose Manuel Carrera Panizzo
Ernesto Ceja Romero
Laura Chong Gutiérrez
Carlos Coronado Gallardo
Roberto de Anda Carrillo
Bernardo de la Garza
Jorge de los Reyes Guerrero
Carlos de Regules Ruiz-Funes
Gabriela Dorantes Lara
Oscar Duarte Morales
Adrián Elizalde Sesma
Alejandro Erazo Brito
Iván Angel Esquivel
Enrique Fernández Agráz Sánchez
Francisco Fernández Lagos
Jorge Fernández Venegas
Julio César Ferrer Soto
Jorge García de la Cruz
Isabel García Jiménez
Juan Carlos García Rubio
Gilberto García Vázquez
Juan Evencio Guzmán Salinas
Pedro Ismael Hernández Delgado
José René Hernández Pérez
Cruz Ernesto Hernández Ramírez
Rosa Amalia Juárez Guerrero
Enrique Karam Mesquida
Raúl Livas Elizondo
José Luis Luna Baez
Luis López González
Luis Felipe Luna Melo
Juan Antonio Magdaleno
Esteban Manteca Melgarejo
Ricardo Manzo García
Jimena Marvan Santin
Fidel Inez Mejía Cuautla
Eduardo Melo Flores
Porfirio Méndez Romero
Mónica Mendoza Archer
Marcelo Mereles Gras
Miguel Miranda Mendoza
Harim A. Montiel Prieto
Miguel Ángel Morales Mora
Héctor H. Morales Quintana
Alfonso Morales y Favela
Marco A. Murillo Soberanis
Jose de Jesús Nakakawa Tsutsumi
Isaías Nicolás Navarro Roman
Mario Nieto Garza
Mario Nuñez Díaz
Hector Ochoa López
Armando Orozco Zarate
Roberto Ortega Lomelín
Salvador Ortíz Vertiz
Luis Manuel Padilla Lamadrid
Julio Pastor Nieto
Carlos Perea Mendoza
Javier Pérez Barnes
Margarita Pérez Miranda
Sergio Eduardo Picazo Garcés
Jesus Puente Treviño
Carlos Rábago Saldivar
Víctor Ragasol Barbey
Luis Manuel Ramírez Araujo
Montserrat Ramiro Ximénez
Guillermo Regalado Nuñez
Dolores Edith Rodríguez Alvarez
José Inocencio Rodríguez Barrera
Mariano Ruíz-Funes
Armando Salgado Fernández
Raúl Sánchez Angeles
Patricia Sánchez Saucedo
Antonio Sepúlveda Gómez
Rodolfo Tapia
Celina Torres Uribe
Francisco Toscano Martínez
Robertony Tovilla Ruiz
Jose E. Tudon Martínez
Sergio Valladares
Juan Pedro Vargas
Diana Vázquez Monterrosa
Víctor Manuel Vázquez Zárate
* This information is out of the assurance scope.
Your opinion matters
Acronyms and Abbreviations
Glossary
118 119 120 120
GRI INDEX
Assurance Letter
106 111 112 116
A Single Management System: PEMEX-SSPA System
98
72 80 88
62
CITIZEN PARTICIPATION
56
Climate Change
PRINCIPLES THAT GOVERN THIS REPORT
24 32 44
Health and Safety
INTERVIEW WITH THE CEO
12
10
Supply Security
8
6
THE 10 CHALLENGES OF PEMEX
1
OVER THE LINE
CONTENTS
Design: X_Design, S.C.
2008 SOCIAL RESPONSIBILITY REPORT PEMEX
www.pemex.com
2008
SOCIAL
RESPONSIBILITY
REPORT

social responsibility report

Transcription

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