Administrative Certainty Also Produces Oil

Among oilfield service companies, the conversation around PEMEX typically revolves around debt, production, and government financial support. All three are important. Yet an increasingly critical factor for sustaining Mexico's oil operations is the state-owned company's ability to administratively recognize services that have already been performed, received, and verified in the field.

The bottleneck lies in the COPADE system (Codificación de Pagos y Descuentos), the administrative mechanism used under PEMEX public contracts to authorize payment for goods and services that have been satisfactorily delivered. Once the corresponding documentation is signed through PEMEX's Electronic Document Repository, the supplier is authorized to issue its invoice.

In practical terms, without a COPADE authorization, there is no invoice. Without an invoice, there is no fully recognized and traceable account receivable.

As of June 2026, many oilfield service companies are still unable to complete the registration and invoicing process through COPADE for work performed as far back as 2024. These are not future commitments or anticipated commercial opportunities. They are services already executed in the field, involving mobilized personnel, deployed equipment, applied technology and financial costs absorbed by contractors supporting critical PEMEX operations.

The Scale of the Challenge

As of March 31, 2026, PEMEX reported MX$375.1 billion (US$21.5 billion) in suppliers and other short-term accounts payable. On the same date, it also reported MX$250.5 billion in long-term contractual liabilities resulting from amended agreements with suppliers and contractors extending payment terms for accrued and accepted commercial obligations.

Beyond representing commercial debt, these figures reflect mounting pressure on the companies responsible for drilling, well intervention, maintenance, transportation, installation, repair and field operations across Mexico's upstream sector.

PEMEX also disclosed that, by the end of the first quarter of 2026, its total financial debt had reached MX$1.43 trillion (US$79 billion), with 35% maturing within the following three years, while its working capital remained negative by MX$393.4 billion.

The company returned to Mexico's domestic capital markets in February 2026, issuing MX$31.5 billion in local bonds, with demand exceeding supply by 2.5 times. During the first quarter, it also received MX$58.3 billion in federal government capital contributions to strengthen its financial position. Additionally, between September 2025 and March 2026, PEMEX formalized nine groups of long-term contractual liabilities totaling MX$250.5 billion. Liquidity helps, but it cannot replace administrative recognition.

Financial mechanisms can facilitate payment of obligations that have already been formally acknowledged. COPADE is what allows completed services to enter the official cycle of authorization, invoicing, accounting recognition and eventual payment. When this administrative stage is delayed, suppliers become trapped. They have fulfilled their contractual obligations in the field, yet still lack the documentation required to recognize those receivables within their own financial operations.

A Risk Already Recognized Internationally

This issue has already entered the international conversation. The Office of the United States Trade Representative (USTR) noted in its 2026 National Trade Estimate Report that, over the past two years, US companies supplying Mexico's oil and gas industry have experienced unprecedented difficulties collecting payments from PEMEX for services rendered. As of Dec. 31, 2025, some companies continued reporting overdue payments exceeding US$2.5 billion.

When an administrative delay prevents suppliers from invoicing services already delivered, the issue ceases to be an internal procedural matter. It becomes a governance challenge and an operational continuity risk.

It may also affect international perceptions of Mexico at a time when the review of the USMCA has heightened scrutiny over investor treatment, contractual compliance, and the governance of state-owned enterprises.

At the same time, PEMEX's operational performance has shown encouraging signs. During the first quarter of 2026, the company produced 1.652 million barrels per day of liquid hydrocarbons, an increase of 38,000 barrels per day compared to the same period in 2025. Natural gas production reached 3.925 Bcf/d, up 423 MMcf/d year over year. Refining throughput averaged 1.141 million barrels per day, a 22.2% increase, while refined petroleum products output rose 21.9% to 1.110 million barrels per day.

Maintaining these gains requires continuity. Stabilizing production depends not only on targets, budgets or policy announcements. It also requires ongoing well interventions, maintenance, equipment availability, logistics, specialized services and financially healthy contractors capable of sustaining operations.

Regularization Does Not Mean Early Payment

PEMEX itself acknowledged in its financial report that declining revenues, budget constraints, or limited financing could restrict its investment capacity, delay supplier payments and jeopardize the investments required to maintain targeted production levels.

For that reason, regularizing the COPADE process should not be portrayed as a concession to suppliers. It is an operational control measure.

It means formally recognizing services that have already been completed in accordance with contractual procedures, enabling valid invoicing, organizing administrative records, reducing accounting uncertainty and ensuring traceability for obligations arising from work already performed.

Nor does it imply demanding payments outside approved budgetary processes.

Rather, it requires respecting the proper sequence: first, validate and register completed work; second, issue the corresponding invoice; third, process payment through the financial mechanisms already available. This sequence protects PEMEX, oversight authorities, suppliers, auditors and financial markets alike.

The cost of failing to do so is greater than the administrative effort required to correct the backlog.

Every service completed since 2024 that remains unregistered as of June 2026 represents immobilized working capital, compromised technical capacity, and weakened operational planning. In an industry where equipment cannot remain idle indefinitely and highly specialized crews cannot be replaced overnight, administrative delays ultimately become production risks.

Administrative Certainty Strengthens PEMEX

PEMEX needs financially sound suppliers, well-organized records, and reliable administrative processes.

Mexico needs an oilfield services sector capable of supporting mature fields, new developments, maintenance programs, repairs and well intervention activities. Energy sovereignty cannot be built solely on production targets. It also depends on enforceable contracts, timely administrative recognition and transparent, traceable payment processes.

AMESPAC proposes regularizing all work performed during 2024 and previous fiscal years that has already been received and technically validated; establishing clear and consistent COPADE registration criteria; distinguishing between registered obligations, issued invoices, reconciliation provisions and liabilities subject to financial restructuring mechanisms; and providing sufficient transparency so that both PEMEX and the industry can make informed operational and financial decisions.

The priority is straightforward: register completed work. Invoice what has been registered. Process what has been invoiced.

Only then can the supply chain that sustains Mexico's oil industry continue operating with the certainty required to support the country's energy future.

In the oil industry, administrative certainty also produces energy.