Although financial planning is a business tool widely used by the international business community, its use by Petróleos Mexicanos (PEMEX) hardly began at the end of the previous decade. For almost fifty years the Mexican Oil Company dealt with volumetric targets and within an administration scheme very similar to any federal agency, instead of an international oil company, as it really is. A deep process of structural change started in 1990, aimed to maximize the assets economic value. Within this context, it became necessary to structure a financial planning scheme to monitor the huges investments of the industry, which projects are undertaken in a long term framework and the capital resources applied for those projects have a very important leverage in the Mexican economy. Despite several limitations that the Mexican Government still applies on PEMEX, mainly regarding budgeting and taxation, the Company has been developing a "sui generis" financial model to enable the top management to design mid and long term financial plans, taking into account the predefined strategies, objectives and targets. Considering that PEMEX is placed among the ten most important worldwide oil industries and also the greater flexibility on federal regulations, the Company is obliged to increase its financial planning efficiency in order to achieve the same operation level of other international oil industries.

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