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Mexico's national oil company Pemex reported a 242% increase in net profit in the first quarter to 87.9bn pesos (US$4.66bn), after having posted a 62.0bn-peso loss in 1Q16.
The swing to profit comes as the company executes a five-year business plan to reverse its flagging fortunes.
Pemex posted a profit of 73bn pesos for 4Q16 after two years of losses.
However, for 1Q17, the NOC reported a 9.5% year-on-year drop in crude oil production to 2.02Mb/d from 2.23Mb/d, while total hydrocarbons output dropped 12% to 2.80Mboe/d from 3.18Mboe/d.
Sales in 1Q17 were 349bn pesos compared with 225bn pesos in 1Q16, spurred on by exchange gains and stronger crude oil prices.
Super light crude suffered the biggest decline by type, down 22.1% to 224,000b/d, while light crude output dropped by 12.8% to 721,000b/d, and heavy crude by 3.9% to 1.07Mb/d.
Natural gas production, including nitrogen, declined 12.6% year-on-year to 5.34Bf3/d, while petrochemical production slid 34.4% to 792,000t.
Pemex attributed its oil production drop to a natural decline in reserves and an increase in water flow into the Samaria-Luna, Bellota-Jujo, Macuspana-Muspac and Tabasco fields, as well as at the Chuhuk, Ixtal, Chuc, Kuil and Onel fields in the Abkatún-Pol-Chuc area of the southern Gulf of Mexico, in addition to declines at the Macuspana-Muspac fields.
However, production almost doubled at the Xanab field offshore Tabasco, from 88,000b/d at end-2015 to 156,000b/d.
Production potential offshore Tabasco increased as a result of exploration activities during the quarter that resulted in finds at the Koban 1 and Teekit 1001 shallow water fields, Pemex said.
The average number of wells in operation over the first quarter was 8,240, down 10.5% on 1Q16.
During the quarter, Pemex signed a contract with Chevron and Inpex Corporation for deepwater E&P in block 3 of the Perdido area, and inked a contract with BHP Billiton to develop the deepwater Trión block.
An auction is planned for October 4 to choose a partner for Pemex to jointly develop the Ayín and Batsil fields, which were assigned to Pemex during Round Zero. A minimum of US$250mn will need to be invested.