“On alert”; Pemex debts are choking suppliers: Reuters

Pemex’s debt to oil service providers and private oil and gas producers reached critical situation it threatens hydrocarbon production, investment and even the survival of companies, local groups in the sector warn.

With a financial debt of more than $105 billion, the state-owned giant also owes some money to its suppliers. 297,000 million pesos ($17,220 million) at the end of September, according to our own data.

At a conference call with analysts about its results in October, he said the amount was large because it included many items, but did not elaborate.

The Amexhi association, which brings together private and foreign hydrocarbon companies in Mexico, warned the government in a letter that Pemex’s non-payments jeopardize the continuity of oil operations, production goals, and financial viability of projects mining is already underway.

Amexhi expressed concern about the “critical situation” that is creating huge government debt in Mexico’s oil industry in a letter sent this week to Energy Minister Miguel Angel Maciel and Finance Minister Rogelio Ramirez de la O, a copy of which was obtained by Reuters.

Amexhi’s call to resolve the problem soon joins a call by the oilfield services industry association AMESPAC, which includes SLB, formerly Schlumberger, Halliburton and Baker Hughes, which this week asked Pemex to pay off several months of debts to its members no later than December 15.

“Some of the affected companies have formally notified Pemex of the impact of these delays on their financial position,” the document said, warning that the defaults “will have a significant impact on the country’s hydrocarbon production.”

Amexhi, which asked both officials to take action on the issue, did not respond to a Reuters query about the letter. The Ministry of Finance and the Ministry of Energy did not comment on the situation. Pemex did not respond to requests for comment.

Pemex received the equivalent of more than 70 billion dollars during the government of President Andrés Manuel López Obrador in capitalization, debt amortization, cuts and tax breaks.

However, it barely managed to avoid a drop in crude oil and condensate production. -which is about 1.9 million barrels per day-calling into question the president’s pledge to achieve Mexico’s fuel self-sufficiency by the end of his term in 2024.

No alternatives

In its latest report on payments and debt to suppliers as of October, Pemex recognizes invoices due for more than 96,000 million pesos ($5,566 million).

The state-owned company has on its extensive list of creditors private hydrocarbon companies such as Hokchi Energy, Mexico’s second-largest crude oil producer, which pumped more than 23,000 barrels of oil per day (bpd) in October, and Fieldwood Energy, the second-largest crude oil producer in Mexico. associated in Mexico with the company Petrobal, which produced about 12,000 barrels of crude oil per day.

Both operators, which received oil contracts following Mexico’s deep energy reform nearly a decade ago, are selling all their hydrocarbon production to Pemex.

In total, Pemex owes Fieldwood and Petrobal, according to its own data, about $90 million, and Hokchi Energy about $127 million.

“Most operators “They have no choice but Pemex”That’s according to an industry source familiar with the matter, who spoke on condition of anonymity because few companies have permits to export their products. “If there were other alternatives, it would be easy for operators to pivot and be able to sell to other customers,” he added.

In September it was revealed that Hokchi had notified Pemex that Procedure dispute resolution due to failure to pay the state giant about $190 million for the sale of crude oil and gas.

Hokchi said he had no comment when asked about the status of the debt to Pemex. Fieldwood and Petrobal did not respond to Reuters requests for comment.

Pemex also has large debts to SLB. SLB.NHalliburton HAL.N and Baker Hughes BKR.Oamong other major oil service companies, according to Pemex data reviewed by Reuters.

The state-owned company owes Halliburton an amount equivalent to $529 million in SLB $474 millionNow it’s Baker Hughes $311 million according to your most recent debt statement.

Neither SLB, Halliburton nor Baker Hughes responded to Reuters’ inquiries on the matter.

Pemex official data on debt to suppliers They do not include disputed amounts, taxes, as well as works that are in the process of reconciliation with creditors.

An industry source familiar with the matter said Pemex’s figures were “partially” consistent with total debt because they only included overdue invoices that were “many months overdue” and not work completed with due dates.

“This is an urgent task,” he said. “Otherwise, some service companies may die along the way,” he stressed about the need for payment.

Reuters