DuPont Mexico Director Is Named to Run Pemex
By GRAHAM GORI
Nov. 28 — President-elect Vicente Fox Quesada has named the director of
DuPont Mexico to run and reshape Mexico's state- run oil
Leos, a chemical engineer by training and the president of DuPont Mexico
since 1988, said after accepting the post Monday night that Pemex
must "make its operations more efficient in order to create additional resources to reinvest" in new infrastructure and increased production.
Since its nationalization
in 1938, Mexico's oil industry has been a source of pride for the country,
proof that it can exploit its natural resources on its own. It
also has, however, been widely criticized by industry analysts for inefficiency, corruption in its highest ranks and operating more like a government
bureaucracy than a business.
Pemex is the
world's largest oil company in terms of employees, with about 130,000,
but ranks only fourth in terms of production, said David Shields, an oil
industry analyst in Mexico City.
Mr. Fox has emphasized
the need to court foreign investment to modernize Pemex and meet the nation's
energy demands. But he also promised not to
privatize the company, a move that could have been politically unpopular.
will have to modernize the company's infrastructure without the immediate
benefit of proposed changes in Mexico's Constitution that would permit
the partial privatization of Pemex.
He said in his
acceptance speech Monday night that he would work to invest a larger percentage
of the company's revenue in infrastructure modernization.
Today, almost all of the company's profits are channeled to the government.