Mexico unveils rescue plan for debt-ridden state oil company

Mexico City: The Mexican government on Tuesday unveiled a plan to rescue ailing state oil producer Pemex, one of the country s largest companies, whic...

Mexico City: The Mexican government on Tuesday unveiled a plan to rescue ailing state oil producer Pemex, one of the country's largest companies, which has accumulated a whopping $100 billion in debt.

The plan comes after warnings from some of Pemex's suppliers that they are struggling to maintain operations due to a lack of payments from the company.

The program, unveiled by President Claudia Sheinbaum at her daily morning press briefing, aims to reverse a prolonged decline in Pemex's crude output, blamed on a dwindling supply from aging oil fields and a lack of investment.

It includes the issuing of $12 billion in government bonds to shore up the company's finances, which had been announced last week.

Sheinbaum estimated that the state will have to prop up the company until 2027, when she anticipated, "Pemex will be able to manage on its own."