The chief executive of Petroleos Mexicanos (Pemex) resigned on Monday following rumors of a possible scandal involving payouts for personal healthcare and housing loans without seeking approval from the state-controlled oil monopoly. Raul Munoz Leos, 65, will be replaced by Luis Ramirez Corzo, director general of exploration and production (E&P) since 2001.

According to Reforma, one of Mexico’s daily newspapers, critics wanted Munoz, who has run Pemex for the past four years, to resign after he signed a $667 million payout for health care and housing loans for unionized staff without approval. The newspaper said Munoz, a former DuPont executive, has come under increasing pressure because of clashes with several of President Vicente Fox’s cabinet ministers. Some Mexican newspapers last week also reported that Munoz’s wife had undergone two plastic surgery operations, which were supposedly paid for with Pemex funds.

In a statement by the Energy Ministry, Ramirez’s resignation is part of a “change in Pemex’s management,” which is “aimed at renewing the momentum and strengthening the leadership that the company needs in the final stage of the administration.” Fox is up for re-election in 2006, and has been working to encourage more private investment in Pemex’s E&P.

Ramirez’s appointment could signal a strong direction toward more exploration for Pemex, which plans to double its production to 7 MMboe/d within the next two years. Among other things, Ramirez has directed the most recent seismic studies of the Gulf of Mexico.

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