Related Articles
Forward article link
Share PDF with colleagues

Debts threaten Latin America’s state oil companies

Petrobras, PdV and Pemex facing mounting financial pressures. Expect deep spending cuts

As the oil price boomed, Latin America’s biggest national oil companies (NOCs) spent big in pursuit of new reserves and binged on debt to finance it all. Now payments are coming due just as weak prices cripple cash flows. Government intervention, restructuring or even default are now likely.  The region’s three largest NOCs – Brazil’s Petrobras, Venezuela’s PdV and Mexico’s Pemex – have a combined $45bn in debt repayments due over the next two years. With international oil benchmarks trading in the mid-$30s – or much lower for some of Latin America’s heavy crude grades – the cash crunch will stretch the companies’ finances and divert funds needed for investment. Ruing the ever-deepening o

Also in this section
Venezuelan crunch time
17 November 2017
Venezuela faces steep bond payments before the end of the year. It is looking to Russia to help keep it from default
Taking a chance in Kurdish Iraq
16 November 2017
The KRG referendum result and subsequent Iraqi army offensive against the Kurds underline how risky it is for companies involved in the export and sale of Kurdish crude
Iraq—the end of the beginning
16 November 2017
Iraq's army has retaken Kurdish-controlled areas around Kirkuk in the north, while neighbouring states are considering their long-term response to the independence referendum