Mexico Oil Focus: Pemex Debts Threaten Suppliers

Mexico’s state energy company Pemex’s rising debts with oil service providers and private crude and gas producers threatens production, investment, and possibly the survival of suppliers, according to Reuters.

• Pemex has a financial debt of $105 billion and owes local and foreign companies around $17.22 billion.
• Many suppliers in Mexico have no alternative but to work with Pemex, making it reliant on the company for its operations.
• Some companies have notified Pemex that delays in payments are affecting their financial status.
• Elsewhere, Pemex intends to reduce exports of most oil grades from the country next year to gear up supply for its delayed Dos Bocas refinery according to Bloomberg sources. Maya crude exports may be down 30% next year, around 180k b/d.
• It was earlier reported that Dos Bocas is facing delays, despite the government having said earlier in the year that it would be running at full capacity by the end of this month.
• Dos Bocas, the country’s largest refinery, started operations in September but should not reach full capacity until late 2024 according to FGE or possibly in 2025 according to the IEA.