Mexico is Working on Various Payment Mechanisms for Pemex Debt, President Says

SEATTLE (Oil Monster): Mexican President Claudia Sheinbaum said on Thursday that the debt burden accumulated by state energy company Pemex with suppliers would be reviewed and various payment mechanisms are being studied and refined.

Despite efforts to reduce debt under Sheinbaum's predecessor Andres Manuel Lopez Obrador, the company remains one of the world's most indebted energy companies.

"A review is being carried out, which is normal," she said during her regular news conference, without giving details.

Earlier this week, the association that represents the interests of some of the most important oil service providers in Mexico asked state company Pemex to pay overdue debts totaling 103.6 billion pesos ($5.1 billion).

"This situation has caused an adverse effect on our finances and a negative impact in the areas where we operate," it said in a letter, adding that a schedule would provide certainty for operations and allow companies to fulfill their commitments.

Under the six-year administration of Sheinbaum, who took office on Oct. 1, Pemex will seek to maintain average crude oil production of 1.8 million barrels per day but its debt burden has made that challenging.

Courtesy: www.reuters.com