PEMEX Fails to Report Payment Obligations With Suppliers

PEMEX has ceased reporting of its payment obligations with suppliers and contractors on its portal, raising transparency concerns regarding its finances. The oil giant has not updated its monthly reports on debts owed to suppliers for three consecutive months. The latest data from Oct. 31, 2023, revealed a total debt of MX$96.763 billion, marking a 102.9% annual increase since October 2022.

Reports suggest that as of Dec. 31, 2023, PEMEX's debt with suppliers and contractors surpassed US$140 billion. Consequently, the company halted public reporting in October, coinciding with reports of payment delays dating back to August 2023. Furthermore, the report does not include several factors such as VAT, administrative embargoes, reviews or conciliation efforts, among others.

This breach of commitment has sparked worries about PEMEX's transparency and financial stability, undermining supplier confidence and potentially impacting the broader economy. Many suppliers are on the brink of bankruptcy due to non-payment issues.

Industry organizations like the Mexican Association of Hydrocarbon Companies (AMEXHI) and the Mexican Association of Oil Services Companies (AMESPAC) have voiced their concerns over the critical non-payments, which are already causing severe repercussions in the states of Campeche and Tabasco.