5

Pemex's failure to pay debts threatens suppliers' survival, industry warns

 9 months ago
source link: https://finance.yahoo.com/news/pemexs-failure-pay-debts-threatens-154351431.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
neoserver,ios ssh client

Pemex's failure to pay debts threatens suppliers' survival, industry warns

Adriana Barrera
Sat, December 16, 2023, 12:43 AM GMT+9·3 min read
1df037d00a7d4d8df74ec987c1012222
The logo of Petroleos Mexicanos (Pemex) is pictured at the company's headquarters in Mexico City

By Adriana Barrera

(Reuters) - Mexican state energy company Pemex's mounting debt with oil service providers as well as private crude and gas producers threatens production, investment and in some cases even the survival of suppliers, industry groups warned.

In addition to financial debt of more than $105 billion, the company disclosed that at the end of September it owed local and foreign companies about 297 billion pesos ($17.22 billion).

Private oil operators' industry group Amexhi warned this week in a letter to the government, seen by Reuters, that Pemex's reluctance to pay threatens not only production but also projects already underway and some companies' very existence.

Addressed to Energy Minister Miguel Angel Maciel and Finance Minister Rogelio Ramirez de la O, Amexhi's letter expressed concern over what it called a "critical situation" caused by Pemex's debt.

Amexhi, which represents the interests of both local and foreign companies, asked the ministers to act.

Neither Amexhi, the finance and energy ministries nor Pemex responded to requests for comment.

Echoing these concerns was another industry group, Amespac, whose members include some of the world's largest oil service companies. This week, it asked Pemex to pay at least some 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 widely shared letter said, warning that not paying "will have a severe impact on hydrocarbon production in the country."

Pemex said in October that it owes Halliburton the equivalent of $529 million, SLB -- formerly Schlumberger -- $474 million and Baker Hughes $311 million.

SLB confirmed it has been "experiencing payment delays" from its primary customer in Mexico on receivables that are not in dispute. It did not disclose the debtor's name, but added it is "adjusting activity levels with the customer on certain projects," and expects to collaboratively resolve the delays.


report

Recommend

About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK