PETRÓLEOS MEXICANOS. WHO WE ARE

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2 PETRÓLEOS MEXICANOS. WHO WE ARE Petróleos Mexicanos Pemex is the state-owned company in charge of exploiting Mexico s oil assets. It is organized as a corporate entity with four subsidiaries. Pemex explores, produces and commercializes crude oil and natural gas, processes and distributes refined products, gas and petrochemicals, which are sold in the domestic market and abroad. The corporate entity is in charge of central direction and strategic management; it is responsible for ensuring the company s integrity and coordination. The subsidiaries functions are: Pemex Exploración y Producción (PEP) Exploring and developing crude oil and natural gas reserves, mainly located at the country s northeast and southeast regions and offshore in the Gulf of Mexico. Pemex Refinación (PR) Transforming crude oil into multipurpose fuels such as gasoline, aviation fuel, diesel, fuel oil and liquid gas, as well as commercializing and distributing these products inside the country. Pemex Gas y Petroquímica Básica (PGPB) Processing natural gas and producing basic petrochemicals. Transporting and commercializing these products. Liquid gas is also produced. Pemex Petroquímica (PPQ) Producing and commercializing an assortment of raw materials for the country s chemical and petrochemical industries, which includes methane and ethane derivatives such as methanol and polyethylenes, as well as olefins, aromatics and ammonia. ii PETRÓLEOS MEXICANOS

3 PEMEX IN MÉXICO AND IN THE WORLD Petróleos Mexicanos holds the 95 th place among the world s most important companies, and is in the first place in Mexico and Latin America a. In 2003 it contributed with 33.4% b of the Federal Government s income budget and remained the country s foremost fiscal contributor. Based on operational factors such as reserves, crude oil and natural gas production, refining capacity and sales volume, Petroleum Intelligence Weekly elaborates an industry index to classify the world s leading oil companies. According to this classification, Petróleos Mexicanos was ranked eighth in 2002 c, which places it at a dominant position in the international oil industry. In addition, it remains in third place globally in crude oil production, eighth in crude oil reserves, thirteenth in refining capacity and sixteenth in natural gas production. a. Fortune. July, b. Preliminary data (Pemex estimate). c. Petroleum Intelligence Weekly. December, REPORT ON SUSTAINABLE DEVELOPMENT 2003 iii

4 DIRECTORY Raúl Muñoz Leos Director General Luis Ramírez Corzo Director General; Pemex Exploración y Producción Juan Bueno Torio Director General; Pemex Refinación Marcos Ramírez Silva Director General; Pemex Gas y Petroquímica Básica Rafael Beverido Lomelín Director General; Pemex Petroquímica Othón Canales Treviño Corporate Director; Competitiveness and Innovation José Antonio Ceballos Soberanis Corporate Director; Operation Andrés Moreno y Fernández Corporate Director; Project Engineering and Development Moisés Orozco García Corporate Director; Administration Roberto Osegueda Villaseñor Corporate Director; Strategic Planning Juan José Suárez Coppel Corporate Director; Finance Jesús Salvador Gómez Ávila Acting Corporate Director; Industrial Safety and Environmental Protection Juan Carlos Soriano Rosas Corporate Attorney Benigno Estrada Rodríguez Corporate Comptroller Eduardo Martínez del Río Petricioli Director General; P.M.I. Comercio Internacional Gustavo Chapela Castañares Director General; Instituto Mexicano del Petróleo

5 C O N T E N T S Petróleos Mexicanos. Who We Are ii Message from the Director General 2 Sustainable Development in Pemex 4 Economic Growth 7 Eco-efficiency 11 Environmental Protection 14 Socio-environmental Actions 26 Social Advance 37 Socio-economic Actions 38 Statistical Appendix 42 Notes 46 Glossary 48 Letter from WEC Auditor s Report vii viii