Mexican oil service companies ask Pemex for debt repayment

A letter published on Monday shows that the association representing the interests of some the most important oil services providers in Mexico has asked the state company Pemex for payment of overdue bills totaling 103.6 trillion pesos (about $5 billion).

The Mexican Association of Oil Service Companies, in a letter dated November 15 addressed to Pemex’s CEO and the energy and finance ministers of the country, requested that a schedule be provided for payments made on time and those due.

The letter stated that "this situation has had a negative effect on our finances as well as a negative impact within the areas in which we operate." It added that a schedule will provide certainty to operations and allow the companies to meet their commitments.

Pemex owes $20.5 billion to service providers and $97.3 billion in financial debt.

AMESPAC's members, which include Baker Hughes Halliburton, and SLB, wrote in a letter that changes to the taxation of one of America's largest contributors to state coffers could allow Pemex pay off its short-term loan more quickly.

Pemex, the report said, should be able, in the meantime, to reduce its total debt while still investing in strategic projects.

In a recent announcement, the government headed by President Claudia Sheinbaum said it would simplify Pemex's tax regime, combining three existing duties to create one.

Her government has also been working to reduce inefficiencies, diversify energy sources and pay down its debt. However, few details on this have been released. (Reporting and writing by Ana Isabel Martinez, Stefanie Eschenbacher, Editing by Jonathan Oatis & Brendan O'Boyle).

(source: Reuters)