*

AMESPAC seeks formal group to clarify 2025 investment

vehicle

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Espino highlights lack of 2024 debt payment plan in Pemex

meeting

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Suppliers owed 65 billion pesos for un-invoiced work,

Espino

says

By Ana Isabel Martinez and Adriana Barrera

MEXICO CITY, Aug 7 (Reuters) - The head of an

association representing global oilfield service firms in Mexico

said on Thursday that a new business plan for state oil company

Pemex lacks concrete measures to address its massive debt with

suppliers, despite official promises to speed up payments.

Rafael Espino, president of the AMESPAC association, told

Reuters that in a Tuesday meeting with officials from the

finance and energy ministries and Pemex, there was no mention of

how the company would pay down debts for work already performed

in 2024 and the first half of 2025.

As of the end of June, Espino said, AMESPAC members were

owed about 65 billion pesos ($3.49 billion) for work that has

not yet even been invoiced.

"It was a disappointment because there was no specific

reference to the 2024 debts," Espino said in an interview. "If

we have to wait for it to be paid with future cash flow... this

debt will continue to go unpaid and the immediate effect will be

on production."

However, Espino added that officials at the meeting said

Pemex would speed up payments, not let invoices age beyond two

months, and that it expects to have more cash on hand. This

would come from a lower tax burden, a recent $12 billion debt

issuance, and a new $13 billion special fund for 2025 projects.

Pemex is saddled with supplier debts of around $23 billion

and financial debt of nearly $100 billion, despite receiving

billions in government support in recent years to meet its

obligations.

While making some payments and frequent promises, the debts

have continued to accumulate, creating an unprecedented payment

crisis for service providers.

Espino said AMESPAC welcomes the plan but is seeking to

establish a formal working group with authorities to understand

the rules, timeline and eligibility for the new 2025 investment

vehicle and its associated service payments.

The association argues that paying off outstanding debts is

necessary to reactivate idled equipment and help meet Mexico's

national crude production target of 1.8 million barrels per day

(bpd), a goal heavily reliant on Pemex.

AMESPAC members include four of the world's largest energy

services firms Baker Hughes ( BKR ), Halliburton ( HAL ),

Weatherford, and SLB, and mining and

transportation conglomerate Grupo Mexico.

Recently, Grupo Carso - controlled by tycoon

Carlos Slim - reported that Pemex owes it more than $700 million

for various services, with some debts dating back two years.

A subsidiary of Grupo Mexico reported it had temporarily

halted four platforms due to non-payment, and Halliburton ( HAL ) has

stated its payment issues with Pemex remain unresolved.

($1=18.6360 Mexican pesos)