Mexico’s Hokchi Demands $190 Million in Missing Payments From Pemex, Sources Say

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Mexico’s Hokchi Energy has opened a dispute resolution procedure against state-run firm Pemex as it looks to recover some $190 million owed by the heavily indebted oil giant to Hokchi, two sources with knowledge of the matter said on Tuesday.

Hokchi, Mexico’s second-largest private producer of crude oil and gas, sells all of its hydrocarbons to Pemex, the largest oil firm in the nation.

The two sources said Hokchi had notified Pemex in mid-September it was now beginning the dispute resolution procedure, a first step before potential legal proceedings.

Hokchi’s dispute was initially reported earlier on Tuesday by news site Latinus, which published what it said was a letter from Pemex CEO Octavio Romero to Finance Minister Rogelio Ramirez de la O requesting a meeting regarding the situation.

Pemex, the finance ministry and Hokchi all declined to comment.

Pemex had received letters and other warnings from Hokchi “for some time” before being told of the dispute resolution procedure, one of the sources said.

The source added the $190 million owed is as of Sept. 12.

Hokchi produced 22,302 barrels per day (bpd) of oil and 8.876 million cubic feet per day of gas in July, according to the most recent data from the Mexican oil sector regulator, the National Hydrocarbons Commission (CNH).

The firm operates the Hokchi block, in which it holds a 55% stake, in the shallow waters of the Gulf of Mexico.

At the beginning of the year, the Hokchi field had proven reserves of 111 million barrels of crude, according to CNH data.

Source : Reuters