Industry concerns that Pemex’s inability to pay debts poses a threat to suppliers’ survival

Industry associations warned that production, investment, and in certain situations even the life of suppliers are at risk due to Mexico’s state energy firm Pemex’s growing debt with oil service providers and private producers of gas and crude oil.

The corporation said that at the end of September, it owed local and foreign companies over 297 billion pesos ($17.22 billion), on top of its financial debt of over $105 billion.

This week, in a letter to the government obtained by Reuters, the industry group for private oil operators, Amexhi, issued a warning that Pemex’s unwillingness to pay might jeopardize not only production but also ongoing projects and the very survival of certain businesses.

In a letter to Finance Minister Rogelio Ramirez de la O and Energy Minister Miguel Angel Maciel, Amexhi raised alarm about what it saw as a «critical situation» brought on by Pemex’s debt.

Hokchi Energy stated in September that it had alerted Pemex that it had started a dispute resolution process because the massive state-owned company had neglected to pay $190 million for the sale of gas and crude oil. Hokchi declined to provide more details. Petrobal and Fieldwood Energy did not reply.