pemex 2005 safety, health, and environmental protection

safety, health and environmental protection

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P ETRLEOS MEXICANOS

soc ia l respons ib i l i t ysusta inab le deve lopment

directory

Operations Corporate Management Office

Av. Marina Nacional 329Torre Ejecutiva, piso 35Col. Huasteca,11311Mexico, D.F.

Tel. 55 1944 9071Fax. 55 1944 8946

ThIS REPORT IS AvAILAbLE AT:

www.pemex.com

COMMENTS:

[email protected]

Adiabatic distillationProcess in which heat is supplied externally in the distillation tower to reduce the energy degradation and to diminish the environmental impact of the process.

API SystemsDecantation equipments for oil-water separation.

Aromatic hydrocarbons (AH)hydrocarbons with a cyclic structure that have usually a characteristic odor and possess the chemical properties of good solvents.

Carbon dioxide (CO2)Greenhouse gas produced by oxidation of compounds containing carbon.

CatalystA substance that helps and increases a reaction without being involved in the process. It increases the rate of the reaction at lower temperatures, remaining without change up to the end of the reaction. Nevertheless, in industrial processes, the spent catalyst must be replaced periodically to maintain an efficient production.

Cryogenic processesProcesses with an intensive use of energy to produce high pressures and low temperatures.

PitsConstructions to retain solid and liquid waists produced during well drillings.

Drill cuttingsSoil and rocks removed during exploration and production wells drillings. Oils impregnate cuttings through their contact with drilling muds.

Drilling mudsA mixture of clays, water and chemicals used in drilling operations to lubricate and cool the bit, bring drill cuttings to the surface, prevent well wall from collapsing and to control gas or crude oil upward flow.

Energy intensity rate in refineriesMeasure of energy efficiency in refineries, equivalent to the real energy consumption divided by the international theoretical consumption, taking into account the configuration and use of the refinery.

Floating membranessStorage tank covers that move according to the contained liquid level. They are used to reduce the emissions of hydrocarbons evaporation.

Frequency rateRatio of the number of disabling accidents occurred per million man hours with risk exposure in a given period, without including the accidents occurred on the way to/from work nor those due to third party actions and/or insecure conditions out of PEMEX control reach.

Fugitive emissionsEmissions not caught by a capture system which are often due to equipment leaks, evaporative processes and windblown disturbances. Typically they are considered as those of methane and other non-methane vOCs.

Gravity rateRatio of the number of days lost due to disabling accidents per million risk exposure man work hours in a given period of time, not including the accidents occurred on the way to/from work nor those due to third party actions and/or insecure conditions out of PEMEX control reach.

Greenhouse gases (GHG)Gases contributing to the formation of a thermally insulating layer around the Earth. The main GhG are: water vapor, carbon dioxide, methane, nitrous oxide, and halogenated hydrocarbons.

Heavy chlorinated hydrocarbonshydrocarbon chains in which a varied number of hydrogen atoms has been substituted by chlorine atoms. heavy chlorinated hydrocarbons are those chains containing from four to six chlorine atoms, known as hexachloride compounds.

CONCEPT AND DESIGN

Margara Corts Chapula

Fernanda Ogarrio Compen

WRITING AND COPY-EDITING

Mara Losn de Fbregas

TRANSLATION

Helena Contreras Chacel

PhOTOGRAPhY

PEMEX - Corporate management office of Social Communication

Jorge Contreras Chacel

Eduardo de la Vega

Hctor Elorduy

PRINTED IN MEXICO bY:

Ediciones Grficas Zeta

ThIS REPORT IS AvAILAbLE AT:

www.pemex.com

Luis Ramrez CorzoDIRECTOR GENERAL

Carlos A. Morales GilACTING DIRECTOR GENERAL OF PEMEX

EXPLORATION AND PRODUCTION

Miguel Tame DomnguezACTING DIRECTOR GENERAL OF PEMEX REFINING

Roberto Ramrez SobernACTING DIRECTOR GENERAL OF PEMEX GAS

AND bASIC PETROChEMICALS

Rafael Beverido LomelnDIRECTOR GENERAL OF PEMEX PETROChEMICALS

Marcos Ramrez SilvaCORPORATE DIRECTOR OF OPERATIONS

Federico Martnez SalasCORPORATE DIRECTOR OF ENGINEERING

AND PROJECTS DEvELOPMENT

Rosendo Villarreal DvilaCORPORATE DIRECTOR OF ADMINISTRATION

Juan Jos Surez CoppelCORPORATE DIRECTOR OF FINANCE

Jos Nstor Garca RezaGENERAL ATTORNEY

Gregorio Guerrero PozasPEMEX INTERNAL CONTROL bUREAU

Rosendo Zambrano FernndezDIRECTOR GENERAL OF P.M.I. INTERNATIONAL COMMERCE

Jos Antonio CeballosDIRECTOR GENERAL OF ThE MEXICAN PETROLEUM INSTITUTE

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Heavy metalsMetals that may produce negative effects on flora, fauna or human health, in concentrations above certain limits. Under the Official Mexican Standard, only the following are considered: arsenic, cadmium, copper, chromium, mercury, nickel, lead, zinc, as well as cyanides.

Hexachlorinated residuesSee heavy chlorinated hydrocarbons.

HydrodesulfurizationProcess to eliminate sulfur from the molecules using hydrogen under pressure and a catalyst.

Implementation UnitsGroup of facilities that are defined in the SIASPA implementation framework.

ISO-14001ISO Norm of the International Standardization Organization, referring to environmental management systems.

Liquid recuperatorEquipment installed in pipelines to recover unwanted liquids.

Methane (CH4)It is considered a greenhouse gas. Conventionally it is not included among the gases known as volatile organic compounds.

Nitrogen Oxides (NOx)A generic term for nitrous oxides. These compounds are produced during combustion processes due to oxidation of nitrogen contained in the air. They contribute to the tropospheric ozone formation and that of acid rain.

Oil and grease (O&G)Any solid or viscous substance that can be recuperated to be dissolved in one of the following solvents: n-hexane, trichlorotrifluoroethane, or a blend of 80% n-hexane and 20% methyl tertiary butyl ether.

Oily sludgesSolid wastes with hydrocarbon content, such as solids associated with crude oil, impregnated in the soil and contention systems hydrocarbons sediments (tanks, pits, dams, etc.).

Oily watersWaters containing oil and grease.

Phenolic watersWaters containing phenol.

PhenolsCompounds formed by benzilic radicals associated with Oh- radicals.

PM10 and PM2.5 particlesParticulate matter (PM). Produced, among others by fuel combustion in vehicles and industries, and are part of atmospheric pollution. They are classified according to their diameter in microns (for example: PM10 = 10 microns diameter). Those with a minor diameter are usually more harmful to health, because they can penetrate deeper into the respiratory system.

Polychlorinated biphenyls (PCBs)Chlorinated hydrocarbons. These compounds are structured by a system of benzenic rings, in which a varied number of hydrogen atoms has been substituted by chlorine atoms. The PCbs are used, less and less, as oils in electric current transformers due to their dielectric properties and their ability to dissipate heat. These compounds are toxic, very stable and, therefore, very persistent in nature, because their destruction or degradation is very difficult. One of the few ways to eliminate these compounds is by high temperature controlled incineration.

Secondary energyThe group of fuels derived from primary energy sources, obtained in the transformation plants, with specific characteristics for their final consumption.

Sour gasNatural gas containing sulfidric acid, requiring treatment to be used as a fuel.

glossarySour watersWaters containing sulfidric acid (h2S).

Specific discharge conditionsA set of physical, chemical and biological parameters and their maximum permitted levels in waist water discharges, as determined by the Comisin Nacional del Agua (National Water Commission) for the responsible party or parties for the waist water discharge or for a specific receiving body, with the aim to preserve and control the water quality accordingly to the Ley de Aguas Nacionales (National Waters Law) and its regulations.

Sulfides (in wastewaters)Sulfur compounds present in wastewaters.

Sulfur Oxides (SOx)A generic term for compounds, generated by fuel combustion processes, with sulfur in their composition. They contribute to acid rain phenomenon.

Total non-methanic volatile organic

compounds (TNMVOC)Organic compounds resulting from incomplete combustion of hydrocarbons and that do not contain methane.

Total suspended particles (TSP)Term used to designate the total of particles and particulate matter in the air.

Total suspended solids (TSS)Particles suspended or present in wastewaters. They are held in a micro-fiberglass filtering mean with a 1.5 microns or equivalent pore diameter.

Total volatile organic compounds

(TVOC)They are the sum of the vOCs and the TMNvOCs.

Vapor recuperatorEquipment installed in tanks and fillers to recover hydrocarbons vapors, in facilities or processes with high rates of evaporation.

Volatile organic compounds (VOC)Organic compounds that easily vaporize at room temperature, including several hydrocarbons, oxygenated compounds and compounds with a sulfur content. They are usually grouped into methane and other non-methane vOCs. All vOCs contribute tropospheric ozone formation through a photochemical reaction with nitrogen oxides.

Abbreviations

ASIPAS Auditoras de Seguridad Industrial y Proteccin Ambiental (Industrial Security and Environmental Protection Audits)bbCOE billions of barrels of Crude Oil Equivalent bCO barrel of Crude OilbCOE barrel of Crude Oil Equivalent. Normalization of the caloric values of different sources of energy referred to the caloric value of a barrel of crude oil.CPG Centro Procesador de Gas (Gas Processing Center)DCO Direccin Corporativa de Operaciones (Operations Corporate Management Office)EbITDA Earnings before Interests, Taxes, Depreciations and AmortizationGRI Global Reporting Initiativelps Liters per SecondMbCOE Millions of barrels of Crude Oil EquivalentMCF Millions of Cubic FeetMDCF Millions of Daily Cubic Feet MTbE Methyl Tertiary butyl EtherMW Mega WatsPEP PEMEX Exploracin y Produccin (PEMEX Exploration and Production)PGPb PEMEX Gas y Petroqumica bsica (PEMEX Gas and basic Petrochemicals)PPQ PEMEX Petroqumica (PEMEX Petrochemicals)PR PEMEX Refinacin (PEMEX Refining)

safety, health and environmental protect ion i v

safety, health and environmental protect ion

Message f rom the Director General 2

Relevant notes about th is report a. Reporting principles i i b. Transparency commitment 4

Petr leos Mexicanos in context 8 a. Infrastructure and main operational results 0 b. Main economic results c. Hydrocarbons reserves 2 d. Corporate governance 3 e. Risk management 3

Industr ia l safety a. Personal accidents 4 b. Occupational health 20 c. Spills and leaks in pipelines 22

Environmental performance a. Emissions to air 26 b. Climate change 32 c. Water utilization and discharges 40 d Waste water discharges 42 e. Hazardous waste 48 f. Certifications 52

Socia l responsib i l i ty a. Social development 54 b. Protected natural areas 60 c. Land ecological ordinance 63

Stat is t ica l appendix 66

Concordance wi th GRI f ramework 70

Glossary iv Audi tor s report v

Contents

2 annual report 2005

Message from the Director

The year 2005 is a milestone in the way we manage the safety of our operations: with the introduction of an emergency program to reinforce the safety of our personnel, we reduced in 29%, in relation to 2004, the occurrence of employees accidents resulting in disabilities, with a total of 1.06 accidents per million of labored man hours, the lowest rate since 2001.

This trend points in the right direction, but the results are still poor: during the year, ten of our fellow oil men and 21 contractor workers lost their lives in work related accidents. Given these circumstances, the best instrument we have to avoid the loss of human lives is the comprehensive management of safety. Therefore, the systematization of the emergency effort, initiated in 2005, is one of our main commitments for the next three years, and rati-fies that our first priority, within our concept of sustainable development, is the safety of our workers.

Sustainable development means also our engagement in the environmental issues. For that purpose our most recent effort has focused in risk detection and suppression, as well as remediation of the environmental damages caused by the transport by pipeline of hydrocar-bons. Throughout 2005, in accordance with our restoration program, we endeavored to repair the damages caused, in December 2004, by the spilling of nearly five thousand barrels of oil into the Coatzacoalcos river. We managed to restore an estimated of 75% in the remedia-tion of soil and sediments on the banks of the Coatzacoalcos river and on the affected mangrove swamp areas.

Likewise, we devoted ourselves to repair over six thousand kilometers of pipelines, espe-cially in Veracruz State, where the works included over 2,400 kilometers of by-passes, to avoid populated areas, and river crossings substitution, to stop the recurrence of leaks in this re-gion. Sustaining this effort to correct the accumulated set back, due to a lack of budget for the maintenance of our pipelines, is an unavoidable commitment of Petrleos Mexicanos.

Being the sole supplier in Mexico of automobile fuels, we understand that our engagement goes beyond the mere guarantee of the supply: we must assume that the viability of our company stands also in being able to meet the quality of the needs of our clients. Therefore, PEMEX seeks to guarantee the supply of automobile fuels with the lowest sulfur content. For that purpose, the greatest challenge, for the coming years, will be the construction and modernization of the processing facilities which will enable us to reduce the sulfur content on gasolines and diesel in more than 90%.

Pemex is immersed in the restatement of its approach as a socially responsible enterprise. At the end of 2005, we agreed to take a decisive step seeking our adhesion to the Global Compact United Nations Organization initiative, its goal being to promote and advance the corporative responsibility and the universal socio-environmental principles, parallel to the operative and commercial globalization.

safety, health and environmental protect ion 3

Message from the Director

Finally, in the economic issues, 2005 was a year of con-trasts: we had the highest yield before taxes in the history of our company, for a total of 506 billion MXP which, com-bined with the total amount of rights and non classifiable charges of 581 billion MXP also a historical maximum, was a net loss, for the company, of 76 billion MXP.

This financial model is not sustainable: we must understand that in order for Petrleos Mexicanos to remain a company that contributes to the sustainable development of Mexico, it has first to be a financially viable business. In 2005, the Mexican Congress authorized a change to the fiscal regula-tions for the company, which is a first step towards that end. Not withstanding, for the future, the challenge is to widen this change and complement it with a greater man-agement autonomy, allowing PEMEX to implement the best corporate managing practices, in order to be able to maximize the national hydrocarbons value in the context of sustainable development, for the benefit of all Mexicans.

Regarding this report, it is important to point out that, for the first time, it has been prepared according to voluntary international standards used to inform social, environmen-tal and economic performance, in a balanced way. This new procedure has been audited by a recognized third party. Furthermore, we have participated with Transparencia Mexi-cana (Transparency International Mexican chapter) in a joint effort to promote an objective and timely account of the companys results, which will help to reinforce the trust that PEMEX, an asset of all Mexicans, must guarantee.

Lu is Ram rez CorzoDi rec to r Genera l

Verification letterindependent from the interest groupsTO ThE READERS OF ThE SUSTAINAbIL ITY REPORT

We have reviewed the social, environmental and, health and safety informations reliability of the contents of report, with the realization of the following activities:

Interviews with those in charge of the systems that provided the information of this report Review of the system used to generate, add and provide the information Scopes analysis of the information provided Double check by sampling of the calculations Double check by sampling and recalculation of added data at the corporative level Analysis of the tendencies interpretation Double check by sampling of the information produced by the following subsidiary companies

Based on the work described, we did not find significant deviations or omissions in the reviewed information, nor did we observe other circumstances that could point to inappropriate procedures for securing information.

Other information comprised in the reportWe have reviewed the rest of the information included in the report by:

Reviewing the internal documentation, as well as that included in the companys intranet Reviewing the companys public information as well as that of third parties Interviews with the heads of departments and with members of the personnel Consultations with third parties participating in activities or programs mentioned in the report

Based on the above described work, we have not found significant deviations or omissions in the reviewed informa-tion, nor have we observed other circumstances that would point to the fact that the information expressed in the 2005 sustainability report, are not appropriately expressed.

KPMG Crdenas Dosal, S.C.

Roberto Cabrera SilesMexico, D.F. May 24th, 2006

1. Reports content

In order to present a vision of the companys

behavior during the period 2001 - 2005, this re-

port has been designed according to an index

of contents, similar to those used in previous

annual reports. One of the companys goals is

to continue widening and moving forward on

the topics included in this report.

2. Independent verification process

According to the range and conditions estab-

lished in the verification report, included here,

the firm KPMG Crdenas Dosal, S.C. was re-

sponsible for the verification of the data of this

report. The work was carried out by members

of KPMGs verification international team, from

Mexico, Spain and Holland.

The verification included visits to 11 plants and

three hospitals, during which the information

generation process that feeds the companys

systems was reviewed, interviews with per-

sonnel from the corporative units and from the

subsidiary companies, as well as a revision of

the safety and environmental protection data

accounting methods.

The conclusions derived from the revision vis-

its are included in the verification report. The

improvement recommendations are included

in a report to the Directors office, delivered by

KPMG on May 3, 2006. They are in the study

stage by PEMEX Directors Office.

3. Informations integration

The SISPA system that enables to achieve the

industrial safety and environment protection

in-line monthly report from each of the work

centers was established in 2001. The informa-

tion is captured in each center and is pro-

cessed and compiled for all the subsidiaries.

This is the statistic base that forms this report

relative to the data about emissions into the

air and water, greenhouse effect gases and,

production and consumption of energy and

crude water.

The safety data was obtained by hand consoli-

dation of the subsidiaries reported information.

4. Range limits of the information

Emissions into the air: these are estimates

based on the EPA AP-42 emissions factor, year

2000 supplement F, as well as on the stoi-

cheiometric calculations based on the oxidizers

thermal currents composition and the burn and

vent, of the sulfur recuperation plants.

Water consumption: the data is limited to the

hard water consumption.

Spills: The recording of leaks and spills is in

a review phase. In this report, only those of

hydrocarbons in pipelines are accounted for by

the recently created Subdireccin de Coordi-

nacin de Transporte por Ductos (Pipeline

Transport Coordination Assistant Managers

Office), a subdivision of the Direccin Corpora-

tiva de Operaciones (Operations Corporate

Management Office).

Frequency and gravity rate: accidents during

transport to/from work, and those caused by

third parties and/or unsafe conditions out of

PEMEX control. The rates reported do not

include after hours worked by non-union

personnel.

I. IntroductionWe have been appointed by Petrleos Mexicanos (PEMEX) to review the information and data relating to safety, health and environmental protection included in their report SAFETY, HEALTH AND ENVIRONMENT ANNUAL REPORT 2005, (from now on the Report) being the Direccin Corporativa de Operaciones de la Compaa (Companys Operations Corpo-rate Management Office) responsible for its elaboration.

II. ScopeThe efforts and progress reached by PEMEX for the attainment of a more sustainable development.To review the report has been our responsibility, as well as to present its readers with a limited assurance about the following:

The social, environmental and health and safety data contained in the report have been obtained from sources consid-ered reliable

The information is adequately supported by internal documents or from third sources.

III. Criteria for the reviewWe have executed our work in accordance to the Standard for Assurance Engagements (ISAE 3000): Assurance Engage-ments other than Audits or Reviews of Historical Financial Information developed by International Auditing and Assurance Standards Board. Besides other requirements this standard requires that: The team that carries out the work must have the specific professional knowledge, skill and competence, necessary to

understand and review the information included in the report, and that its members fulfill the requirements of the Pro-fessional Ethics Code of IFAC that ensures their independency.

When an informations limited assurance is granted, being of a lower level in deepness than a reasonable assurance, enough evidence in documents and in the companys systems to back up the stated assertions about the company, must be available.

To this day, there are no existent generally accepted principles to carry out reports that reflect a companys sustainable behavior. PEMEX uses its own criteria when establishing its indicators and their measurement, derived from the Global Guide Reporting Initiative (2002), as well as the way in which it interacts with its interest groups. At the same time, the fact that social and environmental information is subject to limitations due to their own nature, as well as the methods to measure, calculate and estimate, each indicator, must be taken into account. The utilized criteria is detailed in the section Principles that govern this report.

About the data regarding financial information and its results, as well as that of outside assurance offered by third parties, our work was limited to checking that these corresponded to information reviewed by those independent third parties.

IV. Completed work and conclusionsSOCIAL , ENvIRONMENTAL, hEALTh AND SAFETY INFORMATIONIn these areas, we have reviewed the contents of this report according to the principles of the AA1000 standard. To this end we have made an analysis of those contents to identify material information for the interest groups. We have founded our review of contents, on the investors expectancies, because they are socially responsible and with the highest influ-ence in the sector, on reports with similar characteristics made in PEMEXs market, on the ethical, environmental and social behavior of the sectors companies that have an impact on the written press, and on similar matters for which managerial associations as well as the civil society show interest in the area of influence of PEMEXs market.

Data about the case studies:

They are based on estimates reached by the

heads of the subsidiary companies, following

their technical criteria. Besides a critical scru-

tiny, there are no more documents concerning

these estimates.

Data from previous years:

The data of previous years may be subject to

corrections through the continuous improvement

process of inventories. These corrections are

mainly due to an improvement in the estimation

factors calculation or to the addition of data from

other sources, that went unrecorded previously.

5. Transparencia Mexicana, A.C.s participation in the preparation of this report

PEMEX requested Transparencia Mexicana,

A.C.s support in the elaboration of the

safety, health and environmental protection

report, therefore contributing to the strengthen-

ing of the Mexican societys trust regarding the

information disclosed by the company.

With this goal in mind, Transparencia Mexicana,

A.C. set up a work group that created a question-

naires first draft of fifteen questions related to

the topics included in this report. The question-

naire was sent to PEMEX who answered it, iden-

tifying in each case the support datas chapter

and section in the report.

The answers were examined and in a session

called for this purpose, evaluated by the work

group, in terms of their importance and of the

information disclosed on this matter.

6. Commitment for the improvement of future reports

PEMEX makes the commitment of a continued

effort in the widening and improvement of the

information it offers the citizens, about a sustain-

able development model in Mexico.

Five years after initiating the operation of the

SISPA, PEMEX will start designing a new infor-

mation system that will increase its indicators

number and reliability.

The company will make a special effort to

widen the reports contents according to the

principles set by Global Reporting Initiative, in its

latest version.

7. Your opinion is important

For suggestions and clarifications about this re-

port contact PEMEX, through the e-mail address:

[email protected]

PEMEX Exploration and Production

PEMEX Gas and Basic Petrochemicals PEMEX Refining PEMEX Petrochemicals Medical Services

Integral Active burgos, Tamaulipas

Gas Processing Centre burgos, Tamaulipas Madero Refinery, Tamaulipas

Petrochemical Complex Morelos, veracruz

hospital Regional de Reynosa,Tamaulipas

Drilling Unit Pipeline Sector Offshore terminal Minatitln Regional hospital, veracruzSeparation and

compression battery Storage and distribution terminal

Pipeline Sector Pipeline Sector

Reporting principles

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Transparency commitment

TRanspaRenCia MexiCanas RepoRT abouT iTs CoRReLaTion wiTh peMex wiThin The ConTexT of The CoMpanys RepoRT on inDusTRiaL safeTy, heaLTh anD enviRonMenTaL pRoTeCTion, May 2006

baCKGRounDPEMEX asked Transparencia Mexicana, A.C. for its assistance within the process of elaborating this Report on In-dustrial Safety, Health and Environmental Protection, in order to reinforce the reliance of Mexican society on the published information, and to identify subjects or issues that could be relevant for the Reports content and should be enclosed to the data validation that PEMEX publishes along with an external audit report.

Transparencia Mexicana, A.C. presented this proposal to its Board of Directors which approved an experimental participation in this project, considering that to identify the reach of this kind of social participation will be a valuable practice for future reports. Transparencia Mexicanas Board of Directors acknowledged PEMEX opening-up to this matter, and commissioned its executive squad to set up a multidisciplinary work team in order to prepare a ques-tionnaire on issues they would consider that should be attended by PEMEX within its report on Industrial Safety, Health and Environmental Protection.

sCope Convinced that this first effort will allow PEMEX to increase the transparency and accountability over the information published by the company, both parties defined a method for PEMEX to answer the questions asked by the work team, which would be evaluated by Transparencia Mexicana. First of all, Transparencia Mexicana formed a work team which was integrated by Manuel Arango, Humberto Murrieta, Felipe Prez Cervantes, Luis Rubio and Jos Sarukhn, as Transparencia Mexicanas advisors, and by Lorenzo Rosenzweig, Rodolfo Silva Casarn and Fernando Ortiz Monasterio, who acted as technical secretary.

The work team prepared a questionnaire of fifteen questions concerning the topics of the Report. This integrated questionnaire is specially aimed to enlighten Mexican society on their concern about PEMEX operations in these areas. It was sent to PEMEX to be answered. PEMEX answered it, identifying in each answer the sections of the Report in which the information supporting the response can be found. The answers were examined by the work team and, during a session especially summoned for that purpose, they were evaluated, according to their rele-vance and to the available public information on these matters.

ResuLTsThe evaluation of PEMEXs answers, carried out by the work team, is summarized in the next chart, supported by the commentaries that the work team decided to include in the evaluation. The revision was not meant to verify PEMEX sources and support, which correspond to the external audit contracted for that matter. It was meant to corroborate the accordance of the answers to the questions. The evaluation was sent to PEMEX for its insertion in the Report, which, in our opinion, shows clearly the respect and opening-up to Transparencia Mexicanas indepen-dency in this experimental collaboration.

f inaL obseRvaTionsWhen it ended its commission, the work team asked Transparencia Mexicana to include the following observations:

1. We applaud PEMEXs initiative to promote a greater transparency over the preparation and publication of its reports, particularly in the one regarding Industrial Safety, Health and Environmental Protection.

2. In order to achieve a higher scope on PEMEXs transparency and accountability, and aiming to formulate a more detailed opinion about the Report and the information included in it, the work team, integrated by Trans-parencia Mexicana, prompt PEMEX to consider again, for the next annual environmental report, a larger and timely participation of the organized civil society.

3. The work team, set up by Transparencia Mexicana, considers the comparative analysis of PEMEX and other international oil companies to be a priority, as well as the study of their tendencies, of improvement or worsening, in the course of time.

4. We trust in the fact that this first practice, as an experiment, will be the basis to reinforce the relationship between PEMEX and organized civil society.

Transparencia Mexicana takes on the work teams observations as its own, and makes an invitation to PEMEX, from now on, to jointly set the basis of a wider and more opportune collaboration for the 2006 report.


annex ChaRT suMMaRiZ inG QuesTions anD answeRs

1. In accordance with the Decree published in the Federation Official Diary, on January 11, 2002, the compliance of the Sectorial Program for Energy is mandatory within its fields of competence. In that sense, what kind of actions does PEMEX implement for the compliance of this program?

In accordance with what it is stipulated in this program, PEMEX has implemented actions in different hubs:

Integration of a institutional network of experts in Efficient Use and Saving of Energy. Training of more than 400 employees of PEMEX and its Subsidiary Companies, in development of energetic-

environmental diagnosis and evaluation of energetic efficiency projects. Five Campaigns of Efficient Use and Saving of Energy. Reduction of 22% in the energy consumption per production unit during 2001-2005 period, due to associated

gas flaring reduction and to energetic efficiency in the work centers operation. Operation of the Internal Carbon Emissions trading Market Participation of PEMEXs buildings on the Programa de Ahorro de Energa Elctrica en los Inmuebles de la Admi-

nistracin Pblica Federal (Program of Electric Energy Saving in the Federal Public Administrations buildings). Energetic diagnosis of main buildings registered on the program, carried out by Comisin Nacional de Ahorro

de Energa - CONAE (National Commission for Energy Saving). Quarterly follow-up of electric energy consumption of the buildings registered on the program, through

CONAEs web page.

2. Within the context of sustainable development, PEMEX represents the 3% of GDP, the 8% of total exports, and the 37% of fiscal income. Considering that total hydrocarbon reserves have systematically decreased in the last few years, what does PEMEX do to minimize the exhaustion of oil total reserves, as it is a non renewable natural resource? And, what long term policies does PEMEX have for a foreseeable future when the hydrocarbons reserves will be exhausted?

Answer included in point c Hydrocarbons reserves, chapter 3 Petrleos Mexicanos in context.

3. Within the context of the use of renewable energy sources (Objectives and goals N 4, 2001-2006 Sectorial Plan of Development), what does PEMEX do in order to create an infrastructure which would guarantee the supply of fuels to future generations (Principle N7 of Energetic Policy, 2001-2006 Sectorial Plan of Development).

Petrleos Mexicanos is subject to Energetic Policy, including support policies for renewable energies which, according to the Organic Law of the Federal Public Administration, are incumbent on the Secretary of Energys Office.

In this context, within its fields of action, Petrleos Mexicanos is technically and economically evaluating the possibility of introducing ethanol, a renewable fuel, into the gasoline blend he produces.

Likewise, there is a Law initiative which includes, among other issues, that the gasolines to be consumed in the main urban centers of the country shall contain at least 10% of ethanol based oxygenating compounds.

In order to fight the environmental pollution, since 1990, PEMEX has used oxygenating compounds as methyl tert-butyl ether (MTBE) in gasoline production. The use of these compounds represents the alterna-tive of lower cost to reformulate gasolines and fight the problems of contaminant emissions associated with lead use. The National Refining System has presently an installed capacity to produce these compounds of 12.2 thousand daily barrels. This capacity was built with a calculated investment of 158 thousand pesos (of 2005) between 1994 and 2002.

The 10% minimum of ethanol use in gasolines, established in this law project, would imply to eliminate MTBE, and would make PEMEXs investments useless. Moreover, given the differences in the properties and the handling due to the use of ethanol, it would be necessary to modify the present operation and blend plan, and the existent infrastructure. The investment required for the use of ethanol in gasolines production is estimated between 75 and 100 million dollars.

Considering the additional investment, the modifications to the present operation and blend plan, and taking ethanols import price as a reference, PEMEX would need a subsidy that could be higher than 200 million dollars a year.

These are the conditions of investment and subsidies necessary for Petrleos Mexicanos to be able to implement the substitution of traditional oxygenating compounds by ethanol.

evaLuaTion anD CoMMenTaRies

Very Poor 0-20%

Poor 20-40%

Average 40-60 %

Good 60-80%

Very Good 80-100%

The sectorial program for energy assigns obligations to peMex.

besides exploration to enlarge its reserves, peMex does not report, in its answer, to have policies for a sustainable future after oil, using alternative sources of energy.

besides ethanol technical evaluation, peMex does not inform about having any solar, wind, biomass, microhydraulic infrastructure or any other kind.


4. Within the context of efficient use of energy, which is the historical tendency and which the future projection of energetic intensity, measured in energy terajoules, by thousands of barrels of oil, as well, as by millions of cubic feet of natural gas produced by the company?

Energy consumption corresponding to the companys activities shows a decreasing tendency. Between 2001 and 2005, the energetic intensity rate, expressed in terajoules for each thousand of barrels of crude oil equivalent1, had an average annual decrease of 4.8%, due mainly to a greater use of associated gas.

Energy consumption includes the operation of the four subsidiary companies and products flaring. Production includes crude oil and gas.

When the different cogeneration projects, that are forecasted, will start to operates, the energetic efficiency of the company will register an increase.

5. Which are the advance and the tendency in obtaining ISO 14001 certifications and Clean Industry Certificates? (Objective N7 of 2001-2006 Sectorial Plan of Development).

Answer included in point f Certifications, chapter 5 Environmental performance.

6. How PEMEX can be compared to other world class companies, with respect to emissions to air, water and soil, measured by thousands of barrels of oil, millions of cubic feet of natural gas produced by the company?

PEMEX has not identified available public information of other companies which would allow to make a consistent comparison in precise terms. Even though the sectors main companies publish data of emissions to air, discharges to water and soil damage, they do not necessarily publish the relation between these data and the oil and gas production. Moreover, these data are not necessarily obtained in a similar way nor from the same sources, which makes it difficult to compare them directly.

7. Which is PEMEXs portfolio of projects to mitigate greenhouse gases emissions? Which is their tendency

and how can they be compared to CO2 emissions, by thousands of barrels of oil, as well as in millions of cubic feet of natural gas, produced by other world class oil companies?

The answer to the first question is included in point b Climate change, chapter 5 Environmental performance.

The historical records of PEMEXs CO2 emissions referred to crude oil and gas production show a sustained level of nearly 8.7 tons of CO2 per barrel of produced crude oil equivalent.

PEMEX does not have available public information of other companies which would allow to make a com-parison of the precise terms shown in this indicator. Even though the sectors main companies publish data of CO2 emissions, they do not necessarily publish the relation between these data and the oil and gas pro-duction. Moreover, these data are not necessarily obtained in a similar way nor from the same sources, which makes it difficult to compare them directly.

8. Within the context of transparency and accountability, as well as regarding the obligation to operate a System and to establish a Committee of Quality Management (Objective N10 of 2001-2006 Sectorial Plan of Devel-opment), what has PEMEX done in order to create an indicators system which would be useful to the com-munity and to the public and private organizations, and how can PEMEXs indicators be compared to those of Extractive Industries Transparency Initiative?

Since 2002 PEMEX has been working on the implementation of Intragob model, issued by the Federal Government and based on the following premises:

To improve the quality of the products and services offered by the public sector to citizenship. To consolidate a quality culture of public service. To succeed in having a trustworthy and transparent Federal Public Administration. To render accounts and report results systematically. To promote resources saving and optimization. To unify a meaning of continuous improvement, innovation and competitivity on management of Government

offices and entities.


Very Poor 0-20%

Poor 20-40%

Average 40-60 %

Good 60-80%

Very Good 80-100%

QuesTion saTisfyinGLy soLveD.


peMex does not inform about the projects it carries out.


1This includes the energetic equivalence of produced gas, in terms of crude oil.


Based on this model, public institutions work is oriented to fully satisfy the expectations and needs of citizens and clients of the products and/or services provided by Federal and State Public Administration.

2005 advances report, evaluated by the quality network integrated to that effect, concludes that the maturity level of institutional processes and systems in force within the company corresponds to 473 points. This places PEMEX in a 86% of compliance with the Federal Government goal of 550 points for 2006.

Petrleos Mexicanos has not confirmed if Intragob model coincides with the criteria of Extractive Industries Transparency Initiative.

9. Given the rise of oil price in world market and PEMEXs additional income, in what way these resources have been used to promote sustainable development in Mexico?

Answer included in point b Main economic results, chapter 3 Petrleos Mexicanos in context.

10. Which is the tendency as for quality and quantity of waste water discharged by PEMEX facilities, and how these discharges can be compared, by thousands of barrels of oil, as well as in millions of cubic feet of natural gas, produced by other world class oil companies?

Answer included in point c Water utilization and discharges, chapter 5 Environmental performance.

11. With regard to liquid and gaseous hydrocarbons to air, water (including coast and sea waters), soil and subsoil, which is the total amount of spills, which is their tendency, how many spills of more than a barrel have been recovered and how can be all the afore mentioned compared with other world class oil companies?

Answer included in point c Spills and leaks in pipelines, chapter 4 Industrial safety.

12. Within the context of closure, closing-down and abandon of obsolete infrastructures, especially hydrocarbons transportation pipelines that are about to reach, or have exceeded their expected average life, what preventive and repairing actions does PEMEX undertake to revert the increasing tendency of accidents in hydrocarbons transportation pipelines?

Answer included in point c Spills and leaks in pipelines, chapter 4 Industrial safety.

13. Which was the report of the advances on PEMEX accidents incidence and magnitude (Objective N6 of 2001-2006 Sectorial Plan of Development) and how can they be compared to those of other world class oil companies, using the Days Away From Work Case Frequency, DAFWCF?

Answer included in point a Personal accidents, chapter 4 Industrial safety.

14. Which policies has PEMEX adopted for the protection of biodiversity and natural areas, susceptible of being damaged, within the regions where it operates?

Answer included in point b Natural areas, chapter 6 Social responsibility.

15. Which actions does PEMEX have to promote long term communitarian development within the zones where it operates, and how do they relate to the principles of Global Compact as well as of the United Nations Millennium Development Goals?

Answer included in chapter 1 Message from the Director General.


Very Poor 0-20%

Poor 20-40%

Average 40-60 %

Good 60-80%

Very Good 80-100%


peMex reports percentual advances, and it would be interesting for the civil society to have knowledge of the absolute values expressed in parts by millionand compared to normativity in force.

no answeR2.

peMex did not present any recovery programs of infrastructure nor closed or abandoned pipelines.

The evidence shown by media indicates a higher number of regrettable casualties (including civil population) than the 10 reported by peMex. The sectors frequency rates presented in the comparative table with other world wide oil companies deserves an acknowledgment.

peMex did not report policies but projects. The amount of 57.3 million pesos is low compared to the additional and the accumulative impacts peMex has in the ecosystems of Mexico.

unsatisfactory answer, as peMex has taken on the commitment of being a socially responsible company. peMex has already published that it subscribed to the united nations Global Compact.

2 its worth mentioning that even though question 11 was not answered individually, questions 11 and 12 are answered jointly in chapter 4, point c. however, both refer to pipelines and spills issues.


Petrleos Mexicanos is a decentralized public entity of the Federal Public Administration, duly constituted and legally existent in accordance to Mexican laws, with legal status and own patrimony, and whose aim is to exert the central leading and the strategic management of all the activities encompassed by the national oil industry, accordingly to the Ley Reglamentaria (Regulations Law).

The purpose of PEMEX is to maximize the economic value of hydrocarbons and their derivatives, in order to contribute to the sustainable development of the country.

1 The peMex Code of ethics is available at www.pemex.com, in section Relaciones con Inversionistas.

The institutional values1 of PEMEX are:

Leadership Intelligence and technical capability Integrity Creativity and innovation Team work Development of human resources Efficient attention to clients Quality planning Planning culture Proudness about the enterprise, vocation

and commitment Respectfulness for the environment Mutual respect Enthusiasm Courage Trust in the personnel Credibility Cohesion Performance evaluation

Petrleos Mexicanos in context


2 presentation of the peMex safety, health and environmental protection emergency strengthening program by its Director General on april 29, 2005.

3 from piw 2004 Rankings, December, 2005. petroleum intelligence weekly.4 source: Reservas de hidrocarburos 2005, available at www.pemex.com, in section Relaciones con Inversionistas.

PEMEX sees to its employees safety and health, as well as to the protection of the environ-ment. Therefore, its policies include commitments such as the following ruling principles2:

The safety, health and protection of the environment are values with the same hierarchy as production, transport, sales, quality and costs.

All incidents and harms can be prevented. The safety, health and protection of the environment are the responsibility of all workers

and are work conditions. In PEMEX, we are committed to continue protecting and preserving the environment, for

the communitys benefit. All PEMEX workers are convinced that the safety, health and protection of the environ-

ment are for our own benefit.

Petrleos Mexicanos is the largest Mexican company, with 86 billion USD of total sales, in 2005. It is the sole producer of crude oil and natural gas, and the sole producer of refined products and only company in Mexico commercializing them.

With a daily average production of 3.3 million barrels, Petrleos Mexicanos is the worlds third crude oil producer, the first in offshore production, and the ninth integrated oil company3.

Our proven reserves amount to 16.470 billion barrels of crude oil equivalent (BBCOE) enough for 10 years production, at the rate of 20054.

Our average lifting cost was 4.29 dollars per BCOE in 2005.

Our profit before interests, taxes, depreciation and amortization (EBITDA) of 55.3 billion USD places Petrleos Mexicanos in second place among the 10 main integrated oil compa-nies of the world.


infRasTRuCTuRe anD Main opeRaTionaL ResuLTs 5

Petrleos Mexicanos runs a wide net of production process-ing, storage and distribution facilities.

With 742 operative wells and 116 drilling teams in 12 inte-gral development sites and three region exploration sites, PEMEX produced daily, in 2005:

3.3 million barrels of oil, and 4.8 billion cubic feet of gas

The nine gas processing centers and the six refineries pro-cessed daily 3.88 billion cubic feet of gas6 and 1.28 million barrels of crude oil, respectively.

With this processing infrastructure, the daily production lev-els of the main oil products of the system were as follows:

455 thousand barrels of gasolines 63 thousand barrels of jet fuel 318 thousand barrels of diesel 351 thousand barrels of fuel oil 246 thousand barrels of liquefied gas

The seven petrochemical facilities of the system produced 6.1 million metric tons of petrochemical products through-out the year.

The main storage, distribution and commercialization infra-structure associated to these operations was: 77 land based storage terminals 15 offshore terminals 17 liquefied gas terminals, and 39.7 thousand kilometers of hydrocarbons transportation pipelines7

5 source: Memoria de labores, available at www.pemex.com, in section Informes.6 processed humid gas.7 besides, petrleos Mexicanos has around 21 thousand kilometers of pipelines for the collection and discharge of wells production.


8 unaudited consolidated financial results report as of December 31, 2005.9 source: informes sobre la situacin econmica, las finanzas pblicas y la Deuda pblica / Cuarto

Trimestre de 2005. available at www.shcp.gob.mx, home page, in section Informacin Diversa.

Main eConoMiC ResuLTs 8

In 2005, the main economic variables of the company were:

Total sales for the amount of 928.6 billion MXP, 16% more compared to 2004. Income before taxes for a total of 506.1 billion MXP, 7% more compared to 2004. Net loss of 76.3 billion MXP.

In 2005, the income before taxes, rights and non classifiable charges was 506.1 billion MXP, compared against 474.6 billion MXP in 2004. The increase of 7% was mainly due to:

An increase of 28.4 billion MXP of operative yield A decrease of 0.3 billion MXP of other net incomes A reduction of 2.8 billion MXP in the integral financing cost

In 2005, the total amount of taxes, rights and non classifiable charges increased 18% compared to 2004, up to 580.6 billion MXP.

The payment of Petrleos Mexicanos and Subsidiary Companies taxes, rights and non classifiable charges was 62.5% of their total sales plus a non classifiable charge on the surplus yields on crude oil exports (ARE).

According to official data of the Secretara de Hacienda y Crdito Pblico9, the receipts from Advantage on Excessive Yields, generated on 2005 on the basis of an average price for oil exports higher than 27 dollars, amounted to 43.973 billion MXP.

The distribution of the resources corresponding to each federal entity is based on the same porcentage structure resulting from the Fondo General de Participaciones (General Shares Fund) recorded in the Cuenta de la Hacienda Pblica Federal de 2004 (2004 Treasury Account).


hyDRoCaRbons ReseRves 10

The results as of December 31, 2005 show that PEMEX has proven reserves for the amount of 16.470 billion barrels of crude oil equivalent, of which 72% correspond to crude oil, 11% to plant condensates and liquids, and the remaining 17% to dry gas equivalent to liquid.

69% of the reserves are developed, meaning the reserves that can be retrieved from existing wells, including those that ca be retrieved with the present infrastructure, by means of a slight update with moderate investment.

31% of the proven reserves are not devel-oped, meaning the volume we expect to produce in the future by drilling new wells.

The potential reserves are calculated in 15.789 billion barrels of crude oil equiva-lent. The sum of these reserves and the proven ones constitute the reserve 2P, which totals 32.258 billion barrels of crude oil equivalent.

The likely reserves total 14.159 billion barrels of crude oil equivalent which, added to the proven and potential reserves, consti-tute the reserve 3P with a total of 46.418 billion barrels of crude oil equivalent. Among several, the main oil fields in this category are Chicontepec, Akal, Maloob and May.

The total of the reserve 3P is divided in: 71% of crude oil, 10% of plant conden-sates and liquids, and 19% of dry gas equivalent to liquid.

The restitution of reserves issue is, with no doubt, of the highest strategic importance for the com-pany. We will be able to reach the objectives on this matter only by investing significant resources.

Resulting from the invest-ment in exploration, be-tween 2001 and 2005, the rate of restitution of total reserves of hydrocarbons increased from 14% to 59%.

This results in the fact that the annual incorporation of total reserves went from 216 million barrels of crude oil equivalent in 2001 to 950 million at the closing of 2005.

Considering the information as of December 31, 2005, with an amount of annual investment in exploration and production above 10 billion USD in the next four years, and with a rising tendency of the amount intended to exploration, our expected goal is to reach a restitution rate in 3P of 75% for 2006 and 100% for 2010.

Likewise, the goal for the integrated restitution rate in 1P will rise to reach a rate of 77% in 2010.

These expected results will contribute to reinforce substantially the PEMEX long term prospects regard-ing hydrocarbons production and transformation.

10 source: Las reservas de hidrocarburos de Mxico. evaluacin al 1 de enero de 2006, available at www.pemex.com, in section Relacin con inversionistas / estadsticas operativas / reservas de hidrocarburos.

Crude oil 72% 74% 73% 68% 71%

plant condensates and liquids 11% 7% 9% 9% 10%

Dry gas 17% 19% 18% 23% 19%

note: The sums may not coincide due to round off


CoRpoRaTe GoveRnanCe

PEMEX Board of Directors has eleven members: six representatives of the Government designated by the President of Mexico, including the president of the board, and five represen-tatives of the Sindicato de Trabajadores Petroleros de la Repblica Mexicana (Mexican Oil Workers Union). There are no independent counselors in the Board of Directors.

Presently, the representa-tives of the Government are the Secretario de Energa (Secretary of Energy), who is the President of the Board of Directors; the Secretario de Hacienda y Crdito Pblico (Secretary of the Treasury); the Secre-tario de Medio Ambiente y Recursos Naturales (Secre-tary of Environment and Natural Resources); the Secretario de Comunicacio-nes y Transportes (Secretary of Communications and Transports); the Secretario de Relaciones Exteriores (Secretary of Foreign Affairs), and the Secretario de Economa (Secretary of Economy).

The Organic Law of PEMEX and its Subsidiary Compa-nies states that: the President of the Board shall be the head of the sector coordinating entity to which

Petrleos Mexicanos is ascribed and he will have casting vote. The sector coordinating entity is the Department of Energy.

The members of the Board of Directors do not receive any emolument for their services to the company. The directors of PEMEX and its Subsidiary Companies must carry out their duties without receiving any additional benefits besides those established by the Law. The directors are not empowered to grant personal loans with funds of the company.

The Board has a consultant Committee whose task is to emit opinions and recom-mendations to the Board of Directors, in the following issues:

Budgets Donations Special payments The issues specifically

proposed by the counselors and/or stated

by the President of the Board, or presented

by the Director General.

RisK ManaGeMenT

In its business common activities, PEMEX is a party in trials of various kinds. In each particular case, PEMEX evaluates if the claimed payments do proceed or not, so as to determine if it is necessary to create a contingency fund should it be the case of a unfavorable verdict.

PEMEX has no knowledge of being, or if it might be, a party of any trial or proce-dure that may have a detrimental verdict, for which it has not created a contingency fund.

PEMEX has insurance policies for its properties and land assets, such as refineries, processing plants, pipelines and storage facilities, as well as for its offshore facilities, such as drilling platforms, machinery and equipment, gas collection, floating docks and production facilities.

These insurance policies cover risks of sudden and accidental destruction, as well as extraordinary expenditures related to wells operation, such as, repair and control costs, and evacuation costs.

PEMEX also has general civil responsibility insurance policies covering risks of environmental responsibili-ties, including spills. Besides, it has protection and indemnity insurance policies, life insurance for its employees, as well as insurance policies for cars, heavy equipment and electronic equipment, and finally hull and cargo insurance policies for its marine fleet.


In 2005, ten oil workers lost their lives in work accidents. This irreparable loss for their families and for Petrleos Mexi-canos has lead us to redefine the way in which industrial safety is managed in the company. At the beginning of April 2005, the Programa Emergente de Fortalecimiento a la Seguridad, Salud y Proteccin Ambien-tal (Emergency program to strengthen the safety, health and environmental protection) was launched, aiming to stop a series of industrial accidents, particularly spills occurred in the facilities of Pemex, and to reverse the incidence tendency of accidents in late 2004 and along the first semester of 2005. This program was the result of a joint effort between the company and the workers union.

industrial safety

Personal accidents

The central element is the homologation and application of a unique system of integral administration, named PEMEX-SSPA, which, as any natural evolutionary process and continuous improvement, incorporates PROSSPAs teachings of success and SIASPAs advancements, through Operative Discipline, Safety in Processes, Occupational Health, Effective Audits and Environmental Management

ind

ust

rial

saf

ety


ind

ust

rial

saf

ety

1.00

1.17

1.09

1.50

1.06

124

133

132

143

117

1.86

1.79

1.54

1.85

0.71

53

40

52

54

27

Petrleos Mexicanos

2001

2002

2003

2004

2005

0.56

0.88

1.13

2.00

1.13

139

161

199

210

138

Corporate

2001

2002

2003

2004

2005

0.50

1.01

0.92

0.38

0.26

88

114

196

203

250

PEMEX Petrochemicals

2001

2002

2003

2004

2005

0.69

1.10

0.63

1.23

1.16

85

138

121

127

93

PEMEX Gas and Basic Petrochemicals

2001

2002

2003

2004

2005

2001

2002

2003

2004

2005

PEMEX Refining

2001

2002

2003

2004

2005

1.26

1.14

1.35

1.67

1.26

191

154

134

161

143

FREQUENCY SEVERITY

ACCIDENTABILITY RATE 2001-2005

PEMEX Exploration and Production


A strict follow up was made

to 6,495 recommendations

of Comisiones Mixtas de Se-

guridad e Higiene (Safety and

Health Mixed Commissions),

of which 2,718 were carried

out as of December 31 of

the previous year, that is a

42% of attention, continuing

this effort to insure their total

fulfillment in the established

schedule.

The technical personnel of

the DCO and the ASIPAS

of the Subsidiary Entities

participated in 53 inspection

visits to 43 facilities consid-

ered critical due to the recur-

rence of personal accidents.

These resulted in 932 recom-

mendations to mend the

cause of those accidents,

of which 380 were rated as

intolerable, and therefore

the corresponding attention

programs were developed.

The Reglamento de Segu-

ridad e Higiene de PEMEX

(Pemex Safety and Health

Regulation) was updated and

optimized, with the participa-

tion of a technical multidisci-

plinary team of the Subsidiary

Entities, considering the

normativity in force and the

best Safety, Health and

Environmental Protection

practices as fundamental

parts of this revision. The most

outstanding improvement

was the addition of three

new chapters concerning the

following topics: Occupational

health, Critical procedures

and Environmental culture,

as well as the suppression

of 217 articles and a first aid

manual, considered obsolete.

A follow up of the Reinsur-

ance recommendations was

made through technical sup-

port visits to make sure they

were fulfilled accordingly to

the Reinsurance inspectors

criteria. As a result, from the

388 reviewed recommenda-

tions, 238 have been certified

as completed.

In the context

pemex 2005 safety, health, and environmental protection

Documents

energy degradation

energy intensity rate

real energy consumption

intensive use of energy

pemex control reach

way tofrom work

oilwater separation

halogenated hydrocarbons