Mexico’s private oil producer Hokchi Energy is locked in a high-stakes standoff with Pemex over a debt that now exceeds 300 million dollars. As the state oil company delays payments, Hokchi is pushing to bypass Pemex entirely and sell its oil through Pemex’s commercial arm PMI Comercio Internacional. It is the latest twist in a battle that highlights the friction between private energy firms and a heavily indebted national champion.
Hokchi operates in the Salina del Istmo basin in the Gulf of Mexico and extracts about 23,000 barrels of oil equivalent per day. Under the current contract structure, Hokchi sells its output to Pemex, which then either refines the oil or resells it via PMI. But failed payments have forced Hokchi to seek a direct sales agreement with PMI, effectively treating them like any global oil trader. Industry insiders describe PMI as a more reliable partner. Despite two requests this year to alter contract terms, the energy ministry has rejected the proposals.
Financial Strain and Market Implications
At the core of this dispute is a staggering unpaid balance. Reuters sources estimate Pemex owes Hokchi around 380 million dollars in crude purchases. Public data show 92.4 million invoiced in 2024 and 88.7 million this year, but the actual figure is higher since many invoices remain unprocessed. Hokchi has already brought legal action twice, in 2023 and again this year, to compel payments.
Pemex’s failure to pay is not an isolated incident. The oil giant is carrying more than 100 billion dollars in total debt and owes over 20 billion to service providers such as Baker Hughes, Halliburton and SLB. Many smaller firms report delayed payments that threaten their financial stability. Some are unwilling to speak up for fear of retaliation from the near-monopoly that dominates the Mexican energy sector. Mexico’s president, Claudia Sheinbaum, has confirmed that her administration is seeking payment solutions, but so far little has changed on the ground.
The ongoing cash flow problems are seriously limiting Pemex’s ability to invest in declining fields or new exploration projects. Its production has fallen in recent years as aging infrastructure and disappointing discoveries take their toll. Pemex now plans to reactivate old wells to boost output, but without private investment and timely payments to partners there is little hope of reversing the trend.
Wider Stakes in Mexico’s Energy Landscape
This fight over contract terms and delayed payments reveals a growing tension in the Mexican energy sector. Since the landmark 2014 energy reform, private producers have flocked to the country under promises of fair treatment and reliable market access. Hokchi itself represents the private success story, stepping into offshore fields once reserved for Pemex.
But private investors now face an obstinate reality. When Pemex fails to pay on time, it cuts off the lifeblood that powers private exploration and production. Companies like Hokchi that try to enforce payment through the courts are challenging a system that implicitly favors state control. At stake is not only the future of private investment in Mexico, but also the country’s broader goal of reversing declining output and sustaining energy independence.
Mexico’s leadership faces mixed signals. On one hand the government continues to promise investment frameworks and payment mechanisms. On the other hand it clings to policies that favor Pemex dominance. Success in balancing these forces will determine whether Mexico can attract and maintain the private capital and technology it needs.
