The government has transferred 95 billion pesos to Pemex in the first half of the year.

The federal government has allocated 95 billion pesos to Petróleos Mexicanos (Pemex) during the first half of the year, according to information from the Ministry of Finance and Public Credit (SHCP).

The Public Finance and Public Debt Report for June of this year showed that these transfers, via the Ministry of Energy (Sener), were part of the budget line approved for the oil company for this year, which amounts to 136 billion pesos.

Compared to the same period last year, Claudia Sheinbaum's administration has allocated 42% less in transfers to the oil company.

In this way, almost 70% of this budget line was used, which is one of the ways to finance the oil company's approved expenditures for this year, amounting to 464.255 billion pesos.

Jorge Cano, coordinator of the Expenditure and Accountability Program at México Evalúa, explained that the spending approved for Pemex does not specify that transfers will be received. "It's not an additional expense; it's additional income that supports Pemex's spending."

He noted that the expenses of the oil company, the most indebted in the world, must be covered by Pemex's own resources, which it obtains through the sale of oil, as well as other activities and asset sales.

"As a state-owned company, Pemex can only spend, in theory, what it earns from its own revenue," the analyst added.

The budget line for Pemex transfers, which began implementation in 2024 and will continue the following year, is a mechanism through which the government supports the oil company, whose debt at the end of the first half of the year was $98.8 billion, equivalent to approximately 1.8 trillion pesos.

Of the debt, 80% is denominated in US dollars, 10% in local currency, and the remainder in euros, Swiss francs, pounds, yen, and UDIs.

More for Pemex, less for the treasury

According to the organization México Evalúa, transfers to Pemex, in turn, result in the government receiving less oil revenue, thus affecting the treasury.

"Pemex contributed 128.1 billion pesos in revenue to the Federation by June 2025; however, the government returned 95 billion pesos to it via transfers. Thus, the State ended up with profits of only 33.1 billion pesos," he asserted.

The 95 billion pesos transferred to Pemex helped the oil company pay 494.4 billion pesos in amortizations in the first half of the year.

Thus, total oil revenues—including those of the government and Pemex—left the treasury with 442.9 billion pesos, a 22.2% drop compared to the previous year, and 210.7 billion pesos less than planned.

A new bailout for Pemex

Last Tuesday, the SHCP (Ministry of Finance and Public Credit), Sener (Sener), and Pemex presented a Strategic Plan to once again rescue the oil company from its financial situation, which has been in the crosshairs of rating agencies and has necessitated the support of the federal government on several occasions, not only through transfers but also through tax reductions.

This plan seeks to promote a 250 billion peso fund for the oil company's investment projects, which will ensure that, although it would still require government support this year and next, it will be self-sufficient by 2027.

This would reduce the debt from $105.8 billion in current terms to $77.3 billion by the end of 2030.

"The comprehensive capitalization and financing strategy included in the plan we are presenting today addresses the structural challenges facing public enterprises," said Edgar Amador Zamora, head of the Treasury, on Tuesday.

The Strategic Plan aims to reduce Pemex's debt by 30% by the end of 2030 compared to 2018.

“During 2025 and 2026, Pemex will require support from the Treasury to meet its financial requirements. We estimate that in 2027, with the operating plan and increased revenue, a positive operating balance will be guaranteed to meet its commitments. The freed-up resources will be allocated to the most profitable activities, and accountability and transparency mechanisms will be maintained. We are building the future of the company,” said Luz Elena González, Secretary of Energy.

Likewise, the Mexican oil company will reactivate mature fields through joint ventures with private companies. A total of 21 joint ventures are planned for implementation by 2035.

In addition, it will seek to exploit natural gas from its unconventional deposits, which are typically developed using hydraulic fracturing techniques, known as fracking.