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7 years ago
UPDATE 2-Mexico oil output slips in Feb, still above target
March 25, 2010 / 8:12 PM / 7 years ago

UPDATE 2-Mexico oil output slips in Feb, still above target

3 Min Read

 * Oil production sliding but at slower rate than in 2009
 * Oil exports falling, gasoline imports rising
 * Feb crude output 70,000 bpd above planned level
  (Adds detail on output decline, graphic link, byline)
 By Robert Campbell
 MEXICO CITY, March 25 (Reuters) - Mexican oil production
fell in February but at a far slower rate than in early 2009,
suggesting state oil monopoly Pemex is successfully controlling
the decline.
 Crude output was 5,000 barrels per day lower than in
January at 2.61 million bpd and 2 percent below the year-ago
level in February, Pemex [PEMX.UL] reported on Thursday.
 Production slumped 9 percent in February 2009.
 Sliding oil production has put pressure on Mexico's public
finances, which depend heavily on export revenues to fund its
federal budget. Pemex has struggled since 2004 to contain the
rate of decline at its giant Cantarell field, which once pumped
nearly two-thirds of Mexican oil output.
 Declining oil output was one of the main factors behind the
decision of two bond rating agencies to downgrade Mexico's
sovereign debt last year.
 For a graphic on Mexican oil output click on:
 Mexican officials said late last year Pemex had stabilized
its output problems at Cantarell. While analysts are skeptical
Pemex has solved the problem, the company is producing more oil
than its 2010 operating plan assumes.
 The plan called for output of 2.54 million bpd in February
and an average of just over 2.5 million bpd for the year.
 Mexico is among the top four exporters of crude oil to the
United States. The slump in output, along with a growing
reliance on imported gasoline and other refined products,
threatens to turn the country into a net oil importer.
 Mexican crude exports averaged 1.198 million bpd in
February compared with 1.238 million bpd in January and 1.257
million bpd in February 2009.
 Gasoline imports, historically volatile, rose to 329,200
bpd from 258,000 bpd a month earlier.
 Pemex is unlikely to quickly raise oil production and cut
gasoline imports due to a legacy of underinvestment.
 The country is building a new oil refinery but it is
unlikely to begin operations until at least 2015 and Pemex has
yet to turn up any major discoveries in its offshore oil
exploration campaign that would allow it to offset all of the
anticipated declines at Cantarell and other fields.
 Total liquids production, which includes crude oil as well
as condensates and natural gas liquids, was 2.988 million bpd
in February, down 5,000 bpd from January, Pemex said.
 (Reporting by Robert Campbell; Editing by David Gregorio)

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