Mexico maintains 2017 oil output target

Thursday, December 1, 2016

Mexico has maintained its 2017 oil production target of 1.94Mb/d.

The figure is lower than the 2.15Mb/d authorities expect the country will be pumping out at the end of this month.

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The energy ministry (Sener) attributes the reduction mainly to a natural drop in oilfield production rates, adding that the slowdown will help stabilize the global crude market.

Oilfields in the country started to begin producing less in 2004, Sener said in a statement.

Mexico, Sener added, will stick to its 2015-19 hydrocarbons auction plan. The first deepwater auction is due to be held on December 5, the first shallow water auction of Round 2 on March 22, 2017 and an onshore auction on July 12, 2017.

OPEC's decision this week to cut oil production could boost exploration and production investment in Mexico, Sener said.

The cartel reached an agreement to slash output to 32.5Mb/d from January 1, 2017, down from a previous ceiling of 33.6Mb/d in a bid to push up prices.