Suppliers threaten shutdown in July due to Pemex payment problems
The Mexican association of major oil service companies has warned it is experiencing an "unprecedented" crisis due to the non-payment by the state-owned Pemex. Pemex is the most indebted oil company in the world. The association, in a letter to President Claudia Sheinbaum that was released on Monday afternoon warned that some of these companies could be forced to cease operations as soon as July. The letter didn't specify how much money was owned by the group members. These include Baker Hughes and Halliburton, Weatherford, SLB Oil & Gas, Grupo Mexico, as well as Weatherford. Pemex is one of Mexico's biggest companies.
Sources say that Hokchi Energy, frustrated by Mexico's Pemex and its refusal to buy oil from them, pushed for a change in who purchases their oil.
Three sources said that Hokchi Energy in Mexico, frustrated with months of late payments from the state-owned company Pemex for its oil, gas and natural gas, sought to amend its contract so that it could do business with PMI Comercio Internacional. Hokchi Energy’s attempt to change the buyer of its production shows the difficulties in doing business with Pemex. One source stated that PMI, which imports and exports refined fuels like gasoline and diesel and exports crude oils, is seen as a much more reliable partner than Pemex.
Mexico's Pemex increased crude exports to Cuba in 2024 according to filings
According to a filing by the company, Pemex, the Mexican state oil company, increased crude shipments to Cuba last year by nearly 20% as Cuba's energy crisis worsened. Gasolinas de Bienestar, a Pemex affiliate, exported 20,100 barrels of crude oil per day and 2,700 bpd in oil products by 2024. This equates to a total of $600 million. Pemex will send the Caribbean island in 2023 16,800 bpd crude oil and 3,300bpd oil products worth $400 million. The shipments that year began in July. Cuba has suffered from frequent and long power outages. It blames this on the Cold War U.S.
Exports of crude oil by Mexico's Pemex rose 33% from January to February
The crude oil exports of the Mexican state energy company Pemex increased 33% from January to February, recovering from the drop in the previous month but still being down 25% when compared with February 2024. Pemex published data late Tuesday showing that crude exports reached 709,793 barrels a day (bpd) in February. About 60%, or 428 357 bpd of these exports went to the United States. The majority of this was the Maya heavy crude blend. Crude exports fell by 44% in January compared to the same period last year, reaching their lowest level for decades.
Exports of crude oil by Mexico's Pemex fell 44% in January
Official numbers reveal that crude oil exports from the Mexican state energy company Pemex fell 44% in January, compared to last year, to 532 404 barrels per daily (bpd), their lowest level in decades. The company admits it has been struggling with crude's quality. The level for January is the lowest monthly since records began in their present form in 1990. Exports were just above 811,000 bpd last year and just over 1 million bpd the year before. Sales to the Americas According to figures released on Tuesday, sales to the Americas were 326,944 bpd, or 36% lower than the previous year.
Mexico's crude and condensate production in December drops by 12% compared to the previous year
The Mexican state-owned oil company Pemex announced on Tuesday that its liquid hydrocarbons production in December fell 12% compared to a year ago, its lowest level of the year. It also missed its government target for the third consecutive month. In December, crude and condensate output averaged 1,62 million barrels per days (bpd), down from its previous record high of 1.65 million bpd. The government has set a target of 1.8m bpd. Crude oil production fell 13% to 1.35 million barrels per day in December, the lowest in over 40 years. Pemex has been unable to find major reserves and is in debt to over $20 billion of its suppliers.
Data shows that Mexico's Olmeca refinery was operating at 17 percent of its capacity in November.
Mexican state energy company Pemex resumed refining operations at is new Olmeca refinery in November, working at nearly 17% of its 340,000-barrel-per-day (bpd) capacity after being fully offline in October, official numbers showed this week. The refinery in Dos Bocas is still far below government targets, and hinders the plans to become self-sufficient in motor gasoline. The company released numbers late Tuesday showing that it processed 59.466 bpd crude oil in November. The month's production consisted of 7,038 bpd diesel, 1,582bpd gasoline, and 5,742bpd petroleum coal.
Mexican firefighters put out a second fire at Pemex in a week
The fire at the refinery of Pemex, Mexico's state oil company, has been put out, according to both the firm and authorities on Thursday. No injuries have been reported. Pemex has not yet revealed what caused the accident at its Minatitlan Refinery, located in eastern Veracruz State. The refinery can process up 285,000 barrels of oil per day. Pemex stated in a press release that the fire did not affect its employees or facilities. When contacted, the firm declined to comment on whether or not production had been affected at the refinery. This week, a separate fire broke out in the Salina Cruz refinery of Pemex in southwest Oaxaca.
President says Mexico is experimenting with different payment methods for Pemex debt
On Thursday, Mexican President Claudia Sheinbaum announced that Pemex's debt burden with its suppliers will be reviewed. She also said that various payment methods are being refined and studied. Despite the efforts made by Sheinbaum’s predecessor Andres Lopez Obrador to reduce the debt, the company is still one of the most indebted companies in the world. She said, "A review is taking place, and that is normal", during her usual news conference. The association representing the interests of some the most important…
Pemex Salina Cruz Refinery Blaze Extinguished
A fire that broke out on Tuesday morning at the Mexican state oil company Pemex's refinery at the Salina Cruz in Oaxaca state has been put out, local authorities said.There was no loss of life or property damages, the local civil protection agency said.
Mexican oil service companies ask Pemex for debt repayment
A letter published on Monday shows that the association representing the interests of some the most important oil services providers in Mexico has asked the state company Pemex for payment of overdue bills totaling 103.6 trillion pesos (about $5 billion). The Mexican Association of Oil Service Companies, in a letter dated November 15 addressed to Pemex’s CEO and the energy and finance ministers of the country, requested that a schedule be provided for payments made on time and those due. The letter stated that…
The legal limit for toxic gas released by Pemex near Houston, Texas was exceeded in hours-long leakage of toxic gas
Pemex, the Mexican state-owned oil refinery, reported to Texas regulators that it released 43,500 lbs of highly toxic hydrogen sulfur gas in an incident that killed one person earlier this week. Two contract workers were killed and 35 injured in an accident that occurred on Thursday at a refinery. According to Pemex’s initial report submitted to the Texas Commission on Environmental Quality on October 10, the leak continued for seven hours and forty minutes. The hydrogen sulfide leakage during the incident exceeded the 6.89 pound per hour hourly limit of the gas. This was more than 800-fold.
Pemex's Deer Park refinery reduces operations following fatal accident
The Deer Park refinery of the Mexican national oil company Pemex, near Houston, will be operating at a reduced level this weekend following a deadly leak two days ago. The state-owned oil company added that it continues to investigate the cause of last Thursday's hydrogen sulfide gas leak that killed two contract workers while injuring 35 others during work on a unit at the 312,500-barrel-per-day (bpd) refinery. Mexico's Energy Minister said that she expects the facility to resume normal operations by the end of Friday. The company has now retracted that statement.
Pemex CEO: Bodies recovered from deadly Texas refinery accident
On Friday, Pemex's top executive announced that the two victims of the chemical leak at Deer Park Refinery in Texas had been found and an investigation was launched to determine what caused the fatal incident. Pemex owns and operates the 312,500-barrel-per-day (bpd) refinery located near Houston. Local Texas officials reported that up to 35 people were treated at the plant for exposure to hydrogen-sulfide gases or transported to hospitals in the area. At a press conference held on Friday morning, Pemex's Chief Executive Officer Victor Rodriguez stated that the two people who died were not Pemex employees.
Mexican President says that new Pemex refinery is running at about 80% capacity
The new refinery of Mexico's state-owned Pemex is currently processing crude oil at 80% capacity, according to the president. This represents a significant increase from the latest data released by the company. The Olmeca refinery, located near the port of Dos Bocas on Mexico's Gulf Coast, has a daily capacity of 340,000 barrels. It is the largest of Pemex’s seven domestic facilities. Pemex’s latest data, from the end August, showed that the refinery was running at about one-quarter of its capacity or about 84.100 barrels per daily (bpd).
Mexico's new president appoints an energy expert to lead Pemex
On Monday, Mexico's new president nominated Victor Rodriguez as the next executive director of the heavily indebted oil company Pemex. This was one of the last nominations to the politically and financially volatile energy sector. At a press event, Rodriguez stated that working with the Finance Ministry would be crucial in stabilizing his company, the most indebted of all oil companies in the world. He also stressed the importance of producing less polluting fuels. The cabinet of President-elect Claudia Sheinbaum who assumes office in October has been announced.
Mexico's Pemex receives approval to increase investment in deepwater Lakach field by $400 million
The hydrocarbon regulator in Mexico approved Thursday the request of state energy company Pemex for an expansion of a natural-gas project in Gulf of Mexico. This requires additional investments of just under $400 million. Lakach has been touted as a possible gateway to a deepwater Mexican gas frontier. Pemex requested that the production strategy for the field be updated to include the termination and recovery of wells, production management, and commercialization of hydrocarbons. CNH approved $2.218 billion for 2024-2041, of which $1.667 billion is for investments and $551 for operational costs.
Sources say that the incoming Mexican government wants to open Pemex up to oil partnerships.
According to four sources with knowledge of the situation, the incoming Mexican government will encourage the state oil company Pemex, to form equity partnerships with private oil firms, a model that is not popular with the president. This move is to increase reserves in the face of a massive debt. These partnerships will be similar to previous Pemex joint-ventures with private oil companies, known as "farm-outs", that Mexico pursued via an energy reform implemented a decade earlier. This reform allowed oil regulators to allow private and foreign oil firms to partner with Pemex in exploration and production.
Pemex Trading Arm Mulls Canceling May-June Cargos
The trading arm of Mexican state oil company Pemex is mulling options to slash the number of fuel cargoes the country imports in May and June as demand plummets because of the coronavirus, three sources close to the talks told Reuters.Pemex last week declared force majeure over fuel supplies from its trading arm PMI Comercio Internacional after a bottleneck of more than 60 vessels built up outside Mexican ports, waiting to discharge.But PMI still has not declared force majeure - a contract provision that allows a party to temporarily suspend its obligations due to external circumstances - over its own fuel purchases…
Mexico and Pemex Face Downgrade Risk
Mexico threw troubled state oil company Pemex a lifeline in 2019 to stop $80 billion in bonds held by investors worldwide being labeled junk by credit rating agencies. Now, investors worry that the state itself is a risk for Pemex.Mexico's creditworthiness came under increasing scrutiny in 2019, with two rating agencies flipping their sovereign outlook for the country to negative and one downgrading its rating.Economic growth has ground to a halt during Mexico's first year under leftist President Andres Manuel Lopez Obrador, hitting income and sales tax receipts.
