Mexican state oil firm Petroleos Mexicanos is placing a freeze on new contracts with service suppliers as the corporate works to repay the roughly $20 billion it owes suppliers.
The short-term halt by Pemex’s exploration and manufacturing arm applies to new agreements with contractors that haven’t been beforehand formalized, in response to an inside firm doc seen by Bloomberg.
The freeze follows the publication of Mexico’s draft 2025 funds, which allocates much less cash for Pemex’s exploration and manufacturing, in response to the doc, dated Nov. 25 and signed by Nestor Rodriguez Romero, the corporate’s head of exploration and manufacturing. Pemex could approve choose contracts it deems vital, the doc mentioned.
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Pemex mentioned in a press release Thursday the corporate wasn’t “freezing” contracts however moderately quickly suspending them whereas it carried out an evaluation of pending offers coming due earlier than year-end. The evaluation is being carried out in tandem with Mexico’s 2025 funds steering and evaluations of the contracts wouldn’t compromise the corporate’s operations subsequent 12 months, in response to the assertion.
Mexico’s finance ministry is getting ready to enlist a gaggle of banks to offer Pemex with financing to repay the corporate’s money owed to service suppliers, the corporate’s CEO mentioned final week. Pemex owes contractors as a lot as $20.5 billion in again funds for oil discipline work and different companies.
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