Mexico announces over $4 billion in aid for struggling Pemex

Staff Writer
Columbus CEO

MEXICO CITY (AP) — Mexico's government has announced more than $4 billion in aid for state oil company Petroleos Mexicanos, which has been hit by the fall in crude prices.

The Treasury Department says that will include a direct infusion of $1.5 billion to the company better known as Pemex.

The government will also provide over $2.6 billion to pay company pensions and retirements this year.

In return, the government wants Pemex to commit to reducing its liabilities and debt by the same amount.

The Treasury Department said Wednesday in a statement that Pemex has been hurt by "adverse economic conditions" in the global energy sector and the depletion of some wells.

The company owed about $8.4 billion at the end of 2015, of which it paid $1.1 billion in the first quarter.