The head of an association representing global oilfield service firms in Mexico said on Thursday that a new business plan for state oil company Pemex lacks concrete measures to address its massive debt with suppliers, despite official promises to speed up payments.
Rafael Espino, president of the AMESPAC association, told Reuters that in a Tuesday meeting with officials from the finance and energy ministries and Pemex, there was no mention of how the company would pay down debts for work already performed in 2024 and the first half of 2025.
As of the end of June, Espino said, AMESPAC members were owed about 65 billion pesos ($3.49 billion) for work that has not yet even been invoiced.
“It was a disappointment because there was no specific reference to the 2024 debts,” Espino said in an interview. “If we have to wait for it to be paid with future cash flow… this debt will continue to go unpaid and the immediate effect will be on production.”
However, Espino added that officials at the meeting said Pemex would speed up payments, not let invoices age beyond two months, and that it expects to have more cash on hand. This would come from a lower tax burden, a recent $12 billion debt issuance, and a new $13 billion special fund for 2025 projects.
Pemex is saddled with supplier debts of around $23 billion and financial debt of nearly $100 billion, despite receiving billions in government support in recent years to meet its obligations.
While making some payments and frequent promises, the debts have continued to accumulate, creating an unprecedented payment crisis for service providers.
Espino said AMESPAC welcomes the plan but is seeking to establish a formal working group with authorities to understand the rules, timeline and eligibility for the new 2025 investment vehicle and its associated service payments.
The association argues that paying off outstanding debts is necessary to reactivate idled equipment and help meet Mexico’s national crude production target of 1.8 million barrels per day (bpd), a goal heavily reliant on Pemex.
AMESPAC members include four of the world’s largest energy services firms Baker Hughes, Halliburton, Weatherford, and SLB, and mining and transportation conglomerate Grupo Mexico.
Recently, Grupo Carso – controlled by tycoon Carlos Slim – reported that Pemex owes it more than $700 million for various services, with some debts dating back two years.
A subsidiary of Grupo Mexico reported it had temporarily halted four platforms due to non-payment, and Halliburton has stated its payment issues with Pemex remain unresolved.
(Reporting by Ana Isabel Martinez and Adriana Barrera; Editing by Marguerita Choy)