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.

The latest twist to a long-running story of Pemex delaying payments to Hokchi Energy is that the company, one of Mexico’s largest oil and natural gas producers, is now reluctant to do business with Pemex. Pemex is the most indebted of all energy companies. According to one source, Pemex owes Hokchi Energy more than $300 million.

Sources said that under the new contract proposed, Hokchi Energy will sell directly to PMI in the same manner as it would if they were selling to any global trading company. According to the existing contract with Pemex Hokchi Energy is reliant on Pemex to pay them. Pemex can either use the production for its own refineries, or sell it to other buyers via PMI.

Sources say that Hokchi Energy has already attempted to alter the terms of the contract twice, the second time earlier this year, hoping the new Mexican government would be more willing to accommodate its request. However, the request was denied.

The matter is commercially sensitive, so all sources spoke under the condition of anonymity.

According to the two other sources, Mexican Energy Minister Luz E. Gonzalez has denied the request for this year. The energy ministry and Pemex did not respond to a comment request.

Hokchi Energy is the operator of the shallow-water Hokchi fields in the Salina del Istmo Basin in the Gulf of Mexico. This field was secured by the landmark 2014 energy reform which opened up the country to private investment.

The field produces about 23,000 barrels equivalent of oil per day.

Hokchi Energy stated in a press release that "our dialogue is productive and constant" and "our operation has been maintained."

Harbour Energy, a company that has stakes in the area, declined to make any comments.

According to the second source quoted, the total debt Pemex has to Hokchi Energy is around $380 millions. However, the exact amount fluctuates as it is crude oil, which is valued daily.

Official data from March revealed that Pemex had invoiced the company $92.41 millions in 2024, and $88.66 millions this year. Sources claim that the actual debt is higher because some outstanding bills haven't been included.

Hokchi Energy filed a lawsuit in 2023 against Pemex, demanding that it pay money it owed. The second source said that Hokchi Energy has filed another lawsuit within the last few months.

According to interviews conducted with dozens different sources in the industry, Pemex has struggled for years to pay suppliers for everything from hydrocarbons productions to infrastructure and services.

Pemex is in dire need of investment and technology. Older fields are depleting and the newer discoveries have disappointed.

Last month, it was reported that Pemex intended to open old oil wells to increase production.

Pemex owes $20 billion in debt to service providers such as Baker Hughes, Halliburton, and SLB. Other smaller Mexican companies have also warned they may go bankrupt if Pemex does not pay.

The industry sources stated that even when companies owe substantial amounts of money, they are hesitant to take legal action or speak out for fear of being punished by the state giant who dominates the market.

Claudia Sheinbaum, the Mexican president, has said repeatedly that her government is working on different payment mechanisms in order to resolve this issue.

Pemex is still in debt to the tune of $101 billion despite unprecedented support by her predecessor, Andres Manuel Obrador. (Reporting Ana Isabel Martinez, Adriana Barrera and Stefanie Eschenbacher; writing by Stefanie Eschenbacher; editing by Stephen Eisenhammer and David Gregorio)

(source: Reuters)