Pemex denies donating oil to Cuba

Octavio Romero Oropeza, CEO of Mexico’s federal oil company Pemex, clashed with opposition lawmakers Monday during a congressional hearing that centered on alleged oil donations to Cuba.

During the five-hour session with members from the lower house’s energy and infrastructure committees, Romero (pictured) denied rumors that the Export-Import Bank of the United States (Exim Bank) canceled an US$800mn credit to the company for sending oil to Cuba for free. 

“Pemex … has not made any fuel donations to any foreign government,” Romero said. 

The rumor surged Friday when US congresswoman María Elvira Salazar (R-FL) sent a letter to Exim president Reta Jo Lewis to congratulate her on the bank's decision to deny the loan to Pemex “for its free donations to the communist dictatorship of Cuba.”

After being pressured by lawmakers, Romero told the hearing that “there is no cancellation of any credit, it was an agreement to no longer request this credit. There is no sanction, nor is there any cancellation, on the part of Exim Bank in relation to Pemex.”

According to Exim records, available here, Pemex withdrew its request for credit on August 23. 

Romero said the company exports to 26 countries, with data available publicly.

Reuters reported in August that Mexico replaced Russia as Cuba’s main petroleum importer during the second quarter, citing vessel monitors. Meanwhile, news agency EFE reported in September that Pemex had sent oil worth US$200mn to Cuba this year, citing data by Texas A&M university.

Production growth and debt 

During his initial presentation, Romero said Pemex will keep increasing daily output throughout the term of President Andrés Manuel López Obrador, which ends in September 2024. Daily output this year is expected to reach 1,886Mb and 1,887Mb next year. In 2022, the figure was 1,785Mb. 

About 32% of this output came from fields which Pemex began developing during the current administration, starting in 2018, he said, adding that the government bet on shallow waters around the Gulf of Mexico. 

In five years, Pemex has achieved eight times more production than all the 103 contracts assigned to private operators following the 2013 energy reform, he said. 

Overall, the data shown by Romero signals Pemex has added 44 fields since the beginning of the administration, when it had eight fields.

Romero also highlighted that Pemex reduced its US$110bn debt by 17.8%. Further alleviation could come after a cash injection that's part of the 2024 federal budget proposal. “The debt issue is out of balance … Pemex does not have a single item in its budget for the payment of debt amortizations,” he said. 

“There has been a very significant indebtedness, not only do we not increase Pemex’s debt, we have gotten it out of debt and those who criticize Pemex as the most indebted company in the world, should be biting their tongue,” Romero said.