Background and Context
Petróleos Mexicanos (Pemex), Mexico’s state-owned oil company, is facing a severe financial crisis in the southern regions of Veracruz and Tabasco. Approximately 1,200 contractors and suppliers associated with Pemex’s refineries and petrochemical/petroleum complexes are on the verge of insolvency due to unpaid debts. This situation has led to 183 companies facing legal actions and potential closure, according to local business leaders.
The Impact of Unpaid Debts
Authorities from Pemex, regional governors, and even Mexico City’s President Claudia Sheinbaum have only promised payments without following through, pushing the region into a “critical” situation. The lack of payment has resulted in a growing “black list” of unpaid debts, which may exceed the officially acknowledged amount. These debts cannot be formally billed due to inconsistencies within Pemex, and they have been accumulating since 2023.
A contractor explained, “Once you complete the work, Pemex issues something called Copade (Payment and Discount Coding System), which is a pre-authorization for billing. However, these Copades haven’t been issued for several years, specifically since 2023-2024. As a result, people cannot bill for the work they’ve done.”
This situation has left contractors in a state of “defencelessness,” as they cannot demand payment for services already rendered. In the south of Veracruz alone, Pemex owes 1.5 billion pesos to 25 companies, according to the Veracruz Chapter of the National Chamber of the Industrial Transformation Industry (Canacintra).
The Ripple Effect Across Regions
Business leaders have reported that companies are “declaring bankruptcy” due to the critical situation in petroleum-related work centers, including refineries, petrochemical complexes, extraction, and exploration activities. These areas span from Salina Cruz (Oaxaca) to Campeche and Ciudad del Carmen.
Contractors in Tabasco, southern Veracruz, and northern Chiapas are experiencing extreme hardship due to the lack of payments for their work. Many have fallen into insolvency, struggling to pay taxes, maintain payrolls, and cover social security contributions. Some have even resorted to selling machinery in anticipation of Pemex’s promised payments.
Amespac Warns of Imminent Collapse
On Monday, the Mexican Association of Petroleum Services Companies (Amespac) issued a warning that a significant number of Pemex suppliers may cease operations by July if the company does not settle its debts, totaling 50 billion pesos among its members.
As of the first quarter of 2025, Pemex had consigned accounts payable to suppliers amounting to 404 billion pesos, a mere 20% reduction from the over 500 billion pesos recorded at year-end 2024.
Declining Oil Production
The unpaid debts from Pemex to its contractors have resulted in fewer active oil wells and reduced drilling activities.
- From January to April, the average number of operational petroleum wells for Pemex was 25, less than half of the 58 registered during the same period in 2024 and a small fraction of the maximum observed in the last two decades (169) in 2009.
- During the same period, Pemex only drilled 26 wells, compared to 56 in the corresponding period of 2024.
- Consequently, liquid hydrocarbon production plummeted by 10.6%, reaching 1.618 million barrels per day – the second-largest annual decline for a first quarter in 39 years.
Key Questions and Answers
- What is the main issue? Pemex’s failure to pay its contractors and suppliers has left approximately 1,200 businesses in Veracruz and Tabasco on the brink of insolvency.
- Who is affected? The crisis impacts contractors and suppliers associated with Pemex’s refineries, petrochemical complexes, and extraction/exploration activities in Veracruz and Tabasco.
- What are the consequences? Businesses face potential closure, and contractors struggle to pay taxes, maintain payrolls, and cover social security contributions.
- What is the extent of unpaid debts? The “black list” of unpaid debts may exceed officially acknowledged amounts, with inconsistencies preventing formal billing since 2023.
- How has oil production been affected? The decline in payments to contractors has led to fewer active oil wells and reduced drilling activities, resulting in a 10.6% drop in liquid hydrocarbon production.
