UPDATE 1-Mexico's Pemex produced 2.523 mln bpd of crude in July

MEXICO CITY Aug 24 (Reuters) - Mexico's state oil monopoly Pemex said on Friday crude oil output in July was 2.523 million barrels per day (bpd), down 0.6 percent from the 2.538 million bpd produced in June.

Oil exports in July totaled 1.123 million bpd, down 6.5 percent from the 1.201 million bpd exported in June, said Pemex .

Pemex is the world's No. 7 oil producer and the Mexican government relies on oil revenues to fund about a third of the federal budget.

Mexico has struggled with declining production for several years.

Boosting oil output is critical after Mexico lost nearly a quarter of its capacity between 2004-2009 due to the rapid aging of its largest oil fields and a lack of investment in exploration for new deposits.

If Pemex cannot find and exploit new discoveries, Mexico risks becoming a net importer of crude within a decade.

In a bid to shake up the country's oil sector launched last year, the Mexican government has allowed private companies to operate - but not own - seven oil fields scattered around the country.