Mexico’s state oil firm Pemex, which has substantial offshore oil drilling interests in the Gulf of Mexico, on Tuesday announced it has established lines of credit with the country’s development bank, according to Reuters.
The company has made the move so it can start paying back sums owed to suppliers. Pemex was struggling with making the payments because of the slump in the price of oil.
By the turn of the year Pemex owed suppliers and contractors around $8.2bn and so far this year it has paid back around $1.2bn. More than 1,300 suppliers are owed.
Last month Pemex’s newly appointed CEO Jose Antonio Gonzalez Anaya showed he could swing the axe on costs by outlining around $5.6bn in budget cuts for this year. That includes $2.6bn saved by putting planned projects on hold.