Latest News

Pemex plan disappointed suppliers who are owed billions of dollars in payments

The head of a Mexican association that represents global oilfield services firms said on Thursday, despite promises by the government to accelerate payments to suppliers, there are no concrete measures in a new business strategy for Pemex.

Rafael Espino is the president of AMESPAC. He said that during a meeting on Tuesday with officials of the energy and finance ministries, as well as Pemex, it was not mentioned how the company will pay off debts from work performed already in 2024, and in the first half 2025.

Espino stated that AMESPAC members owed approximately 65 billion pesos (3.49 billion dollars) for work which has yet to be invoiced.

Espino told an interview that the report was disappointing because it did not mention anything about 2024. If we wait until the future cash flow is available to pay it, this debt will not be paid and will have an immediate impact on production.

Espino said that at the meeting, officials had stated that Pemex will speed up payment, won't let invoices go beyond two months and expects to have a larger cash reserve. Espino said that officials at the meeting stated Pemex would speed up payments, not let invoices age beyond two months, and expect to have more cash on hand.

Pemex has supplier debts totaling around $23 billion dollars and financial debts amounting to nearly $100 billion. This is despite the fact that it received billions of dollars in government assistance in recent years in order to meet its obligations.

Despite frequent promises and payments, debts continue to grow, causing a payment crisis unprecedented for service providers.

Espino stated that AMESPAC welcomed the plan, but was seeking to create a formal group of working with authorities in order to understand the rules and timeline for the new investment vehicle 2025 and its associated payments.

The association claims that the payment of outstanding debts will help reactivate idle equipment and meet Mexico's crude production goal of 1.8 millions barrels per day. This is a goal heavily dependent on Pemex.

AMESPAC is made up of four of the largest energy service firms in the world: Baker Hughes, Weatherford, SLB and Halliburton.

Grupo Carso, controlled by Carlos Slim, reported recently that Pemex still owes them more than $700,000,000 for services rendered, some of which date back as far as two years.

Halliburton's payment problems with Pemex are still unresolved, according to a subsidiary of Grupo Mexico.

(source: Reuters)