Mexico's Pemex claims it has halved its supplier debt under the current government

The chief executive of Pemex, Mexico's state owned oil company, said that the company has paid off half its debts with suppliers since Mexican president Claudia Sheinbaum assumed office in October 2024.

In a speech to Congress, Chief Executive Victor Rodriguez stated that the company has paid out 300 billion pesos (16.33 billion dollars) in supplier debts as of September. He also said they had used a newly created financial vehicle to settle these debts. In an appearance before Congress, Rodriguez stated that the company had paid off its financial debt on time and correctly. The amounts owed to the suppliers were also cut in half.

The CEO said that the company paid 26 billion pesos to its suppliers last week, and will pay another 116 in December.

Pemex is one of the most heavily indebted companies in the world. It owes almost $100 billion. Rodriguez stated that a recent bond buyback of $12 billion will reduce this to about $85 billion.

Production Goals The Pemex Chief said that the company is aiming to maintain crude output between 1.6 and 1.7 millions barrels per days (bpd), despite a monthly drop of around 30,000 bpd, due to depleted field and a lack major discoveries.

Rodriguez stated that the company intends to reduce exports, and process approximately 1.4 million bpd in seven refineries domestically.

The CEO of Olmeca said that the new refinery in southern Mexico processes 230,000 bpd and plans to reach 320,000. He also added that its refinery located in Deer Park in Texas is undergoing major maintenance, which will increase production to 310,000 from 270,000-280,000.

Since the previous administration the government has supported Pemex by reducing debt and injecting capital worth billions of dollars. $1 = 18.3694 Mexican Pesos (Reporting and writing by Adriana Barera; Editing and proofreading by Edmund Klamann).

(source: Reuters)