MEXICO · ENERGY
Key Facts
- —Who Juan Carlos Carpio, head of state oil company Pemex, spoke at President Claudia Sheinbaum’s daily press conference.
- —What Pemex says it cut debt by over US$20 billion, the lowest since 2014.
- —Numbers Debt stood at US$77.5 billion on 30 June 2026, down 9.1% from US$85.2 billion at end-2025.
- —Plan Pemex plans 1.8 trillion pesos (about US$96 billion) of investment for 2025 to 2030, self-funded.
- —Why it matters Pemex is a major dollar-bond issuer, so US bondholders follow its debt closely.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
Pemex, Mexico‘s state oil company, said on Wednesday 21 October 2026 that it has cut its financial debt by more than US$20 billion. The company’s director general, Juan Carlos Carpio, presented the figures at President Claudia Sheinbaum’s daily press conference in Mexico City.
For US readers, the debt matters because Pemex has long been a large borrower in dollar bond markets. All operating figures below are Pemex’s own claims and have not been independently audited.
How Pemex Says It Cut Its Debt
Carpio said Pemex’s financial debt is now at its lowest level since 2014. Pemex puts the total reduction at more than US$20 billion.
Debt stood at US$77.5 billion on 30 June 2026, according to HR Ratings, a Mexican credit rating agency. That was 9.1% below the US$85.2 billion at the end of 2025, a fall within the first half of 2026.
Measured in pesos, HR Ratings found debt 11.6% lower over the same six months. The agency also noted that Pemex still depends closely on financial support from the federal government.
Sheinbaum credited the fall to support from the Finance Ministry, efficiencies at Pemex and the renegotiation of debt. She said the government does not intend for Pemex to keep taking on new debt.
A Six-Year Investment Plan
Pemex presented an investment programme of more than 1.8 trillion pesos for 2025 to 2030, which is about US$96 billion at the EODHD closing rate of 18.675 pesos per US$ on 21 October. The company said the money comes from its own resources only.
The plan aims to hold oil and gas output steady, expand refining and raise domestic fuel production. It also targets petrochemicals and fertiliser, which Carpio described as ways to keep more value inside Mexico.
Sheinbaum said further debt reduction could come with Finance Ministry help, as long as public finances are not put at risk. She also pointed to a simplified tax regime in which Pemex pays a single 30% duty on production.
Production and Refining Claims
Pemex reported crude production of about 1.76 million barrels per day, close to its target of 1.8 million. It said natural gas output rose 7.5% against 2024, to more than 4.9 billion cubic feet per day.
Refining is the centrepiece of the presentation. Pemex said it processed 1.109 million barrels of crude per day in January to August 2026, 81% more than the 612,000 of 2018.
Output of petrol, diesel and jet fuel rose 186%, from 350,000 barrels per day to more than one million, the company said. Carpio credited steadier operation of plants, the new Olmeca refinery and improvements at the Tula refinery.
Pemex said 85 of every 100 litres of fuel sold in Mexico came from its own refineries in January to August. It gave 24 of every 100 as the 2018 figure.
Incidents Around the Announcement
The presentation came days after two incidents, as reported by Infobae. Pemex said a fire broke out on 19 October on its Abkatún-H platform, 73 kilometres off Ciudad del Carmen in Campeche, with no injuries reported.
On 15 October, hydrocarbons were detected in a stream near Jáltipan in Veracruz state. Pemex denied that its infrastructure leaked and sent clean-up crews.
What It Means for You
Holders of Pemex’s dollar bonds are the most direct audience, because lower debt and a pledge of no new borrowing bear on the company’s credit risk. The rating agency’s note on government support is a reminder that the state still stands behind the balance sheet.
Energy traders may also watch the refining push, since higher domestic output could trim Mexico’s need to import fuel, much of which comes from the US. Whether that happens depends on whether the 2026 refining levels hold.
What Is Not Known
Pemex did not give a full debt schedule covering bonds, bank loans and supplier payables. It is also unclear how much of the US$20 billion fall came from repayment, refinancing, exchange-rate moves or government support.
The investment plan has no published annual schedule, project list or expected returns. The production and refining figures are Pemex’s own and no independent audit was cited.
No response from opposition parties, environmental groups, creditors or independent analysts appeared in the coverage reviewed. The cost of the Campeche fire and the Veracruz hydrocarbons is not part of the announced plan.
Frequently Asked Questions
How much debt has Pemex cut?
Pemex says it cut financial debt by more than US$20 billion. Debt was US$77.5 billion on 30 June 2026, the lowest level since 2014, according to the company.
How much does Pemex plan to invest?
More than 1.8 trillion pesos, about US$96 billion at 18.675 pesos per US$, from 2025 to 2030. Pemex says it will use its own resources only.
Did Pemex’s debt fall in the past year?
Between the end of 2025 and 30 June 2026, dollar debt fell 9.1%, from US$85.2 billion to US$77.5 billion, per HR Ratings. That is a six-month change, not a yearly one.
Why do US investors care about Pemex?
Pemex has been a major issuer of dollar-denominated bonds. Its debt level and government backing affect the credit risk of those bonds.
Sources: Infobae; El Universal; El Informador; Crónica; El CEO.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief