The divestment, according to Pemex, was made in accordance with Mexicos Energy Reform, which mandates the company to focus on projects related to exploration, production and processing of petroleum-based products like gasoline, natural gas and other hydrocarbons.

Another press release, this time from MexLub, confirmed the break-up of the joint venture, stating that the company aimed to grow, partly by expanding into international markets.

Further comments from both companies were sought out, but no further information was disclosed.

Pemex, by withdrawing, leads me to believe that they wont make lubricants. They wont venture into the lubricants market, an industry expert told Lube Report. Both companies had some issues during their decades-old partnership, but he doubted that there was any controversy that led to ending their business relationship.

Though MexLubs market share had reduced significantly over time – lowering to 14 percent in 2012 – the expert mentioned that the lubricants company has improved in the last four years, and estimated its current market share at around 20 to 21 percent.

[MexLub] has strengthened. Theyve launched brands, done marketing efforts, and have been very commercially active. I think they have recovered much of what they lost, he said.

Although MexLub is experiencing growth, the expert speculated that it could find it difficult to fill in the gap that Pemex left regarding the use of its lube products for equipment in their refineries. Before separating, the source described that it was a tied investment, meaning that the relationship allowed for MexLub to have its products consumed by Pemex. I do think this will present a challenge for Mexicana de Lubricantes in the near future, he added.

MexLub began operating in 1993 after Impulsora Jaliscience won the bidding to buy 51 percent of Pemexs lubricants operations. Throughout their joint venture, there were reports of MexLubs financial woes and legal disputes over the sale of lubricants at the state companys service stations.