The Mexican government has outlined plans to provide state oil company Pemex with a financial boost of 136 billion pesos ($6.69 billion) next year. This funding, detailed in a recent budget proposal, aims to help the heavily indebted company manage its significant debt and loan repayments.
Pemex faces bond payments of nearly $9 billion in 2024, adding to its substantial financial liabilities of $97.3 billion. The company has long relied on government backing to stabilise its finances, a dependency that has drawn criticism from ratings agencies.
President Claudia Sheinbaum, who assumed office in October, has pledged continued government support for both Pemex and the state-owned electric utility CFE. She has emphasised the strategic importance of these entities to Mexico’s energy infrastructure and economic stability.
The proposed transfer, however, comes with a condition: Pemex must make equivalent improvements to its balance sheet. The proposal is now subject to Congressional debate and approval.
In 2023, Pemex received around 150 billion pesos in government aid to manage its debt obligations. This followed years of substantial support under former President Andres Manuel Lopez Obrador, whose administration provided significant funding to reduce the company’s debt, increase oil production, and complete the construction of a new refinery, which recently began fuel production.
As Congress evaluates the proposal, the government’s approach reflects its broader commitment to strengthening Mexico’s state-owned energy enterprises amid persistent financial challenges.
