Supplying Mexico’s Oil Sector Amid Financial, Logistics Strain

Fuel suppliers play a critical role in Mexico’s oil and gas operations, powering everything from deepwater platforms to land-based wells. Their work involves more than diesel deliveries, requiring around-the-clock logistics, regulatory compliance, and the ability to manage long payment cycles. Audentis Energy is one such supplier, navigating the operational, regulatory, and financial challenges of powering exploration and production from Tampico to Campeche.

“We are more than a jobber; we are a service integrator,” says Diego Compean, Audentis Energy’s CFO. The company provides more than traditional fuel deliveries, extending into marine lubricants, urea, and drilling fluids essential to oil and gas operations. “Many of these fluids are used to create drilling fluids; they are like base components. The essential base is diesel and barite, a stone that is ground and mixed with diesel and other chemicals.”

Audentis primarily serves subcontractors of PEMEX and other oil companies drilling and exploring wells in Mexico’s oil belt, which stretches from Tampico and Altamira to Campeche. Its client roster includes global giants such as Halliburton and Baker Hughes, as well as domestic service providers. “Most of our work involves helping these service providers continue extracting and exploring. The type of service we offer is highly specialized because you have to work closely with clients,” Compean explains.

Deliveries in Mexico’s oil sector demand precision. Offshore platforms and onshore wells operate on strict schedules, and Audentis must be ready to supply fuel, diesel, and other products 24/7. “We operate throughout the entire Gulf of Mexico, practically from Tampico and Altamira all the way to Campeche, which is where Mexico’s oil belt is. We also carry out land-based operations, mostly delivering fuels used by service providers to make drilling fluids.”

The operational challenge is compounded by regulatory requirements. Ports are typically customs-supervised, and entering fiscalized zones requires pre-approved permits and registration of all equipment and products. Compean likens the coordination to automotive just-in-time logistics. “Everything has to be coordinated to arrive at a precise moment,” he says. “Thanks to Audentis’ experience and our team, we are always operating with the goal of arriving on time. That is our main challenge: time, quality, and quantity.”

Audentis occasionally supports clients outside oil drilling, such as combined cycle power plants run by the CFE. When gas supply is disrupted, these plants must switch to diesel to maintain electricity generation, as recently seen during blackouts in the Yucatan Peninsula. Compean notes that while these operations are secondary to Audentis’ main business, they are part of the company’s capabilities.

Operating in Mexico requires navigating a complex landscape of permits and certifications, however. Compean highlighted the importance of standards like ISO 9001, 14001, and 45001, which cover quality management, environmental protection, and occupational health and safety. “It is essential to be knowledgeable, especially in this market, which as you know, has a lot of issues, particularly with fuel theft, the so-called huachicol. So, you cannot just buy from anyone, especially when it comes to fuel. It has to be someone highly specialized,” he says.

Ensuring quality extends to the company’s suppliers and transport partners. Audentis purchases primarily from large, reputable companies, including Valero, Shell, ExxonMobil, and PEMEX, minimizing intermediaries to maintain traceability and compliance with authorities. Compean said, “We place great emphasis on traceability to ensure product quality and to avoid issues with the tax authorities, national security, and the National Guard. We are very strict about that part.” Supplier verification, contractual agreements, and financing terms are all part of a structured approach to minimize risk.

Product quality is closely monitored. Each delivery comes with a validated quality certificate that matches the supplier’s batch and loading date. “Delivering a substandard lubricant could damage a ship’s engine, and those machines are extremely expensive. We have oil engineers and chemists on our team dedicated to reviewing all of this. Nothing is delivered without being checked and double-checked. It must comply with all regulations,” says Compean.

The Mexican fuel market has also undergone significant consolidation in recent years. Compean describes a shift away from “paper-only” traders profiting from fuel contraband. Today, the market is dominated by PEMEX and a handful of importers, compared to more than 200 in 2017 or 2018. This has reduced competition but increased specialization, with companies focusing on specific segments like industrial fuels, gas stations, or power generation. “Where before there were many competitors, now there are fewer. The market has consolidated … Among those of us still in the market, there has been greater specialization. Each of us now adds real value to the industry,” Compean says.

Financial pressures remain one of the sector’s greatest challenges. Long payment delays from PEMEX create cascading effects down the supply chain, requiring suppliers to maintain substantial liquidity. “A big part of the challenge is that this is a very financial business. The NOC really drags the entire value chain with it. It is widely known that it delays payments, sometimes for up to two years, and that ripple effect flows downstream,” Compean says. Companies like Audentis must constantly evaluate credit lines, loans, factoring, and receivable structures to sustain operations while managing high-value products at scale.

Looking ahead, Audentis aims to consolidate its role as a key player in Mexico’s oil and gas sector over the next two decades. Compean highlights plans to expand services in the maritime segment, supporting offshore platforms with not just fuels and lubricants but also water, food, and logistical solutions. “Our goal is to become a fully integrated solutions provider for all the needs of an offshore platform … so clients can simply lease a platform and trust Audentis to take care of everything else,” he says.

Despite ongoing challenges, Compean sees enduring opportunities. “Mexico still has gas and oil fields, fewer by the day, and increasingly complex and costly to develop, but they are still there. So we see this industry as still relevant for at least another two decades, even as the energy transition moves forward,” he adds.