The association that represents the interests of some of the most important oil service providers in Mexico asked state company Pemex to pay overdue debts totaling 103.6 billion pesos ($5.1 billion), a letter made public on Monday shows.
In the letter dated Nov. 15 and addressed to the country’s energy and finance ministers and Pemex’s chief executive officer, the Mexican Association of Oil Service Companies (AMESPAC) requested a reliable schedule for current and late payments.
“This situation has caused an adverse effect on our finances and a negative impact in the areas where we operate,” the letter said, adding that a schedule would provide certainty for operations and allow companies to fulfill their commitments.
Pemex has a financial debt of $97.3 billion and owes service providers another $20.5 billion.
AMESPAC, whose members include Baker Hughes, Halliburton and SLB, wrote that changes in how one of the nation’s biggest contributors to state coffers will be taxed could allow Pemex to pay down its short-term debt more quickly.
In the meantime, it added, Pemex should also be able to reduce its overall debt and still invest in strategic projects.
Earlier this month, the government of President Claudia Sheinbaum announced that it would simplify the tax regime for Pemex, merging three existing duties into one.
In addition to paying down debt while protecting output levels, her government is seeking to cut inefficiencies and diversify its energy sources although few details have been made public on the latter.
(Reporting by Ana Isabel Martinez; Writing by Stefanie Eschenbacher; Editing by Jonathan Oatis and Brendan O’Boyle)