Mexico's government enacted legislation in 2014 which allows private and international investors to enter into joint ventures with state owned Pemex with the aim of modernizing Mexico's energy sector. The energy reform bill and subsequent rules called for an opening of the market (imports) as of January 1, 2017. Mexico's president though has since announced a change in the opening date from Jan 2017 to April 2016.
Although Mexico has been implementing its energy reform program for some time now, perhaps the most visible symbol of its evolving oil and gas industry will become evident to Mexicans this year as independent dealer fuel stations will see new fuel retail brands integrate into the Mexican network which is understandably dominated by the "National" Pemex brand. A number of international oil companies have showed their interest in entering this promising market. Simon Maurice, Press Officer for Gulf Oil International, London, told OEM/Lube News "Gulf will be the first international brand to appear which is scheduled for June 2016".
Gulf Oil International announced that it is lining up Gulf Oil brand licensees for independent fuel retail dealer sites currently operating under the Pemex brand which will be re-branded as Gulf branded sites. An agreement has been signed with IF VERTICAL 2, S.A.P.I DE C.V. for a network of Gulf branded service stations network in the country. FF VERTICAL 2, S.A.P.I DE C.V. is run by Sergio de la Vega.
Gulf Oil's first step in the campaign is to open four service stations in each major city of Mexico.
"The purpose of starting in 2016, in addition to positioning the brand and leverage best territorial opportunities, is to test the model and the full range of products and services that bring and capture information and have a better view of the market. All our stations will have solar panels. They also offer biofuels and to support electric mobility they will also have to sell clean energy." said Sergio de la Vega, General Director for Gulf México.
For the initial opening of 100 gas stations during 2016 Gulf will require an investment of $100 million.
The company has set itself a ceiling of a 25% market share, while its target for the near future is to control 17% of the country's fuel retailing market around 2,000 gas stations, in three years time. Today there are a total of 11,600 gas stations operating in Mexico, all under the Pemex brand. 11,431 gas stations, according to data from the Secretaría de Energía (Sener), which means Gulf would have to open around 2,800 sites to attain a 25 percent market share.
We have to set a limit to where we want to get. If you expand too much, too quickly, you end up betraying the customer, explained de la Vega.
The Fuel license is owned and operated separately to Gulf Oil Internationals long-standing official lubricant distribution agreement with JJ Lubricantes, who also blends and markets Gulf branded lubricants in Mexico. Gulf Oil International operates under a franchise model whereby third party companies sign a long term licence agreement.
Currently, such Gulf Oil International fuel licences have been signed for 22 countries worldwide. That refers to the number of countries in which Gulf has licensees who are retailing fuel with several more in the pipeline over the course of 2016. The aim is to have fuel retail licensees in more than 50 countries within the next four years.
Gulf is currently active in more than 100 countries worldwide in lubricant sales.
