The state-owned Mexican oil company, Petróleos Mexicanos (Pemex), is grappling with a debt exceeding $300 million due to oil shipments to Cuba over the past two years, according to a comprehensive report published on the digital platform Contra la Corrupción. The Mexican oil giant's liabilities have ballooned following the establishment of Gasolinas Bienestar SA de CV in 2022, created specifically to manage these transactions.
In its inaugural year, the newly formed enterprise suffered financial losses, accumulating a debt of 5.836 billion pesos (around $300 million), based on public records from the Ministry of Economy. Since its inception, Gasolinas Bienestar, a Pemex subsidiary, has exported at least 15.6 billion pesos in crude oil and derivatives to Cuba from July 2023 to September 2024. Despite operating under a contract with Pemex Exploration and Production, these shipments have resulted in net losses for the affiliate, exacerbating the state-owned company's financial woes and even jeopardizing an $800 million loan application from the United States amid accusations of gifting oil to the island in 2023.
Reports submitted to the U.S. Securities and Exchange Commission indicate that from January to September 2024, Gasolinas Bienestar exported an average of 31,300 barrels of crude oil and 2,900 barrels of derivative products daily, totaling a value of 9.3 billion pesos (approximately $500 million at the exchange rate during that period). This volume marked an 86% increase compared to the previous year. By the end of its first operational year, Gasolinas Bienestar reported net losses with sales falling short of covering operational costs. As of the end of 2023, the subsidiary had a shareholder equity of merely 149 million pesos, while its liabilities soared past 5.8 billion pesos, predominantly from debts incurred with Pemex Exploration and Production.
Pemex has acknowledged that its growing debt is largely attributed to operations involving Cuba, raising concerns about the financial sustainability of its subsidiaries. The contract between Gasolinas Bienestar and Pemex Exploration and Production, which revolves around crude oil sales, has been pivotal for these shipments, originally intended for the Central American market but ultimately redirected to Cuba.
During Andrés Manuel López Obrador's administration, Mexico persisted in exporting oil to Cuba, despite international criticism and U.S. sanctions accusing Pemex of violating international regulations with these exports. Nonetheless, the Mexican government defends these transactions, asserting that they are legitimate commercial agreements, insisting that the country is not gifting oil, but selling it under agreed conditions. The oil shipments to Cuba align with a policy of supporting the island, which has endured severe energy crises due to reduced oil shipments from Venezuela.
In 2023, it was reported that Pemex exported oil valued at $200 million, aiding Cuba in alleviating the impact of its energy collapse and the decline in shipments from Venezuela and Russia. Despite the mounting debts faced by Pemex, the Mexican government continues to back exports to Cuba under Claudia Sheinbaum's administration, and in 2024, the Ministry of Energy granted multiple authorizations to export more fuels, including barrels of crude oil, jet fuel, and diesel.
The continuation of these exports persists, notwithstanding the criticism over the economic cost and financial risks associated with this support. Furthermore, the National Institute for Transparency, Access to Information and Personal Data Protection (INAI) has ordered Pemex to disclose further details regarding oil shipments to Cuba, requesting information about the quantities, commercial conditions, and responsible parties for these operations. This resolution is part of an effort to ensure transparency in the operations of the state-owned oil company.
Pemex's Financial Challenges and Cuban Oil Shipments
Why does Pemex owe $300 million for shipments to Cuba?
Pemex owes $300 million due to oil shipments managed by its subsidiary, Gasolinas Bienestar, created to handle these exports. The shipments, despite contractual agreements with Pemex Exploration and Production, have resulted in financial losses.
What impact did the oil shipments have on Pemex's financial status?
The oil shipments have significantly contributed to Pemex's rising debt, risking its financial viability, and even threatening an $800 million loan application from the United States due to the perception of gifting oil to Cuba.
How has the Mexican government responded to international criticism?
The Mexican government defends its oil exports to Cuba as legitimate commercial agreements, asserting that the transactions are not gifts but sales conducted under agreed-upon conditions.