Pemex to stop producing fuel oil: CEO

Pemex to stop producing fuel oil: CEO

Mexico has secured $12 billion in debt financing for its state-owned oil producer, Petroleos Mexicanos (Pemex), through a pre-capitalized securities (P-Caps) offering [1]. The funds, which exceeded the initial plan of $10 billion, will be used to cover financial obligations and debt payments due in 2025 and 2026. The total demand for these dollar-denominated securities reached $23.4 billion, indicating strong investor interest.

This financial maneuver is part of President Claudia Sheinbaum's broader strategy to stabilize Pemex's finances. The company, which is the world's most indebted energy firm, has been struggling with significant debt obligations. As of the end of the second quarter, Pemex held a financial debt of $98.8 billion and owed providers $22.79 billion [1].

The need for this debt offering comes as Pemex faces production challenges. The company's natural gas output has been declining, with a 139 MMcf/d year/year drop in the second quarter to 3.592 Bcf/d [2]. This decline is part of a broader trend that has been ongoing since late 2023, and analysts do not foresee a reversal in the near future.

Amid these financial and operational challenges, Pemex's CEO has announced that the company will stop producing fuel oil. This decision is part of a broader strategy to refocus the company's operations and reduce its debt burden.

References:
[1] https://energynow.com/2025/07/mexico-pulls-in-12-billion-to-prop-up-indebted-oil-producer-pemex/
[2] https://naturalgasintel.com/news/pemex-natural-gas-output-struggles-seen-driving-record-us-exports-to-mexico-through-2026/