When one thinks about the old & gas sector, the first word that comes to mind is not, small. Can a Mexican oil & gas company that only has a yearly income of $442,371, with three employees survive in a competitive petroleum production economy in Mexico? In 2009, the Catemar International, LLC, a Mexican oil & gas company was opened, with three employees.
In March of 1938, Mexican President Lázaro Cárdenas, under the authority of the Mexican Constitution, nationalized petroleum in Mexico, including oil production reserves owned by foreign companies. The nationalization caused an international crisis and with calls to boycott Mexican goods.
The event which was at the heart of the expropriation of Mexican oil was the conflict between the Petroleum Workers Union of Mexico and the foreign companies who refused to negotiate a new labor contract. The crisis and strife that ensued brought in the Mexican army. The oil companies declined to abide by an Arbitration award for the union and threatened to leave Mexico along with their capital. Then President Cárdenas ordered the nationalization.
On June 7, 1938, President Cárdenas created the Mexican oil company, Petróleos Mexicanos (PEMEX), and gave this company the exclusive rights to explore, extract, refine and to commercialize all the Mexican oil.
For a long time, Pemex has been the main company for oil production. It was after the Mexican government nationalized all oil assets in the country. It is currently the second largest government-owned oil company. However, that could change soon.
There is a significant restlessness in Mexico as who should be producing Mexican oil. In the wings, questions are asked about the appropriateness of Pemex, which is the second largest company owned by the government, to have the exclusive right to extract, refine and commercialize Mexican oil. The government is in the throws of considering which private companies should be issued tenders to enter the oil market.
Private oil companies have collided with Pemex concerning the inherited conflicts in the control of land. Cotemar is in a position to take advantage of the emerging conflict as to who should have a share of the oil production pie.Cotemar has unique services that Pemex needs.
Cotemar provides services, which supports the infrastructure for oil extraction, such as providing Pemex food and lodging, building vessels, general maintenance, air transport, and marine operation. With the expansion of oil production, Cotemar is positioned for financial success.