Mexican State Oil Company Increases Oil Shipments to Cuba

In 2024, the Mexican state oil company Pemex escalated its oil shipments to Cuba, a nation grappling with one of its most severe energy crises characterized by widespread blackouts and persistent power outages. According to Reuters, Pemex's subsidiary, Gasolinas de Bienestar, exported 20,100 barrels per day (bpd) of crude oil and 2,700 bpd of petroleum products to the island last year. These transactions were valued at $600 million, as reported by Pemex to the U.S. Securities and Exchange Commission (SEC).

In the previous year, shipments commenced in July, totaling 16,800 bpd of crude and 3,300 bpd of refined products, amounting to $400 million. Despite being one of the world's most indebted oil companies, with financial obligations exceeding $101 billion and supplier debts nearing $20 billion, Pemex claims that sales to Cuba constituted 2.8% of its total crude exports and 0.7% of its refined products.

The Mexican firm stated in its report that Gasolinas de Bienestar conducts sales "through contracts denominated in pesos at current market rates" and insisted on having procedures to ensure compliance with applicable laws, as highlighted by Reuters. However, the agency noted that in the past, several sources described these shipments as donations. Pemex, on the other hand, categorizes them as sales without detailing payment methods or any special arrangements.

In 2024, Mexico also announced an expansion to 3,800 Cuban doctors working in its territory as part of a program initiated under Andrés Manuel López Obrador's administration, continuing under the current government—a fact coinciding with the increase in oil shipments. As of now, the Mexican oil company has not addressed queries regarding the continuation of these exports in 2025 or their potential conditions.

Financial Losses from Pemex's Shipments to Cuba

In February, an investigation by the portal Contra la Corrupción unveiled that Pemex has accumulated over $300 million in debt due to oil shipments to Cuba over the past two years. These operations have been managed through its subsidiary Gasolinas Bienestar SA de CV, established in 2022 specifically for handling such exports.

During its first year, Gasolinas Bienestar reported losses and a debt of 5,836 million Mexican pesos, based on official documents from the Ministry of Economy. Between July 2023 and September 2024, this subsidiary exported crude oil and derivatives worth over 15,600 million pesos to Cuba, failing to reverse its financial deficit.

From January to September 2024 alone, the subsidiary sent an average of 31,300 barrels of crude oil daily and 2,900 barrels of refined products, with an estimated value of $500 million based on the exchange rate of that period. Despite this volume, representing an 86% increase compared to the previous year, the company ended the year with minimal equity and an accumulated debt threatening Pemex's stability.

The report also points out that exports to Cuba, although formalized under contracts with Pemex Exploration and Production, were initially intended for Central American markets. In practice, however, they were redirected to the island, raising questions about their legitimacy and potentially jeopardizing an $800 million credit with the United States over the alleged free delivery of oil to the Cuban regime.

Despite mounting criticism and financial risks, the Mexican government has supported the continuation of these shipments under President Claudia Sheinbaum. Additionally, the National Institute of Transparency (INAI) has ordered Pemex to disclose detailed information about the amounts, conditions, and individuals responsible for these operations, aiming to clarify the true extent of energy support to Havana.

The resolution, unanimously adopted on January 15, 2025, mandates that the state oil company provide a detailed account of the fuel sent, its commercial value, shipment and receipt dates, names and positions of those responsible, commercial conditions, and pertinent budgetary allocations. To gauge Cuba's dependency on Mexico, it is worth noting that in 2023, oil shipments from the North American nation surpassed those from Russia, making Mexico the island's primary crude supplier that year.