UPDATE 1-Mexico Pemex losses widen, lowers asset values

Thu Feb 27, 2014 11:00am EST

MEXICO CITY Feb 27 (Reuters) - Mexican state-owned oil company Pemex said on Thursday its losses for the fourth-quarter more than doubled from a year ago after it lowered the value of assets including its Burgos gas field.

The Mexican oil giant, whose 75-year monopoly ended last year with the passage of sweeping energy reforms, said it lost 76.508 billion pesos ($5.84 billion) during the October to December period, against 28.761 billion pesos a year earlier

It reported fourth-quarter revenues of 409.5 billion pesos, down 2.6 percent compared to revenues during the year-earlier period.

Pemex said its operating profit fell nearly a third as it lowered the value of certain assets by 25.6 billion pesos, mainly its Burgos field in northern Mexico.

Mexico is the world's No. 10 crude oil producer and the third-biggest exporter to the United States but has to import nearly half of its gasoline due to a lack of domestic refining capacity.

The company said that average crude production reached 2.523 million barrels per day for the quarter, down 1.6 percent compared to the year-earlier period.

In December, President Enrique Pena Nieto signed into law an energy overhaul that aims to breathe new life into the ailing company by allowing it to enter into joint ventures with international oil majors as well as providing it with more budget and management autonomy.

The overhaul also ended Pemex's decades-long monopoly on production, refining and retail activities, and promises to boost output by luring major new streams of foreign investment into the sector via new contracting options.

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