© Reuters. The emblem of Petroleos Mexicanos (Pemex) is pictured on the firm’s headquarters in Mexico Metropolis, Mexico July 26, 2023. REUTERS/Raquel Cunha
By Adriana Barrera
(Reuters) – Mexican state power firm Pemex’s mounting debt with oil service suppliers in addition to personal crude and gasoline producers threatens manufacturing, funding and in some instances even the survival of suppliers, trade teams warned.
Along with monetary debt of greater than $105 billion, the corporate disclosed that on the finish of September it owed native and international corporations about 297 billion pesos ($17.22 billion).
Personal oil operators’ trade group Amexhi warned this week in a letter to the federal government, seen by Reuters, that Pemex’s reluctance to pay threatens not solely manufacturing but in addition tasks already underway and a few corporations’ very existence.
Addressed to Power Minister Miguel Angel Maciel and Finance Minister Rogelio Ramirez de la O, Amexhi’s letter expressed concern over what it referred to as a “critical situation” attributable to Pemex’s debt.
Amexhi, which represents the pursuits of each native and international corporations, requested the ministers to behave.
Neither Amexhi, the finance and power ministries nor Pemex responded to requests for remark.
Echoing these considerations was one other trade group, Amespac, whose members embrace a number of the world’s largest oil service corporations. This week, it requested Pemex to pay at the very least a few of what it owed its members by Dec. 15.
“Some of the affected companies have officially notified Pemex of the impact these delays have on their financial position,” the broadly shared letter stated, warning that not paying “will have a severe impact on hydrocarbon production in the country.”
Pemex stated in October that it owes Halliburton (NYSE:) the equal of $529 million, SLB — previously Schlumberger (NYSE:) — $474 million and Baker Hughes $311 million.
SLB confirmed it has been “experiencing payment delays” from its major buyer in Mexico on receivables that aren’t in dispute. It didn’t disclose the debtor’s title, however added it’s “adjusting activity levels with the customer on certain projects,” and expects to collaboratively resolve the delays.
Halliburton and Baker Hughes didn’t present rapid remark.
Beneath President Andres Manuel Lopez Obrador, who took workplace in 2018, Pemex has obtained the equal of over $70 billion in money injections and tax breaks, plus assist to pay down debt.
Pemex additionally disclosed invoices payable for greater than 96 billion pesos in the identical debt report: it owes Fieldwood Power and its associate Petrobal about $90 million and Hokchi Power about $127 million. Hokchi and Fieldwood, that are massive native producers, each promote their output to Pemex.
The businesses gained oil contracts throughout a landmark power reform underneath Lopez Obrador’s predecessor Enrique Pena Nieto, who opened the trade to non-public funding, experience and know-how.
“Most operators have no option but Pemex,” stated an trade supply who spoke on situation of anonymity.
In Mexico, just a few corporations have permits to export manufacturing and due to this fact promote it to Pemex.
“If there were alternatives, it would be easy for operators to turn around and sell to other customers,” the supply added.
In September, Hokchi Power stated it had notified Pemex it had initiated a dispute settlement process as a result of the state behemoth didn’t pay $190 million for the sale of and gasoline. Hokchi declined to remark additional. Fieldwood Power and Petrobal didn’t reply.
