Pemex oil output declines in 2017

By
Tuesday, January 23, 2018

Mexico's state-run oil company Pemex produced an average 1.955Mb/d of oil during 2017, a new low, while natural gas and petrochemical production also declined compared to 2016.

Despite the decrease in crude oil output, the company did manage to surpass the guidance for the year set out in its five-year business plan by 11,000b/d, according to its latest production figures.

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However, oil production was well below the 2.15Mb/d average seen in 2016 and the 2.26Mb/d reported for the previous year.

Pemex has seen its oil output decline by 3.8% over the last decade, but the company nevertheless aims to increase production by 74% by 2031, as blocks awarded at auction and developed in farm-outs with private firms come into production.

According to BNamericas data, Pemex's output peaked at 3.83Mb/d in 2004. The company attributes the subsequent fall to declining reserves and an increased water mix in oil recovered.

[GRAFICO:FIGURA:ID_1543_1516725925448]

Pemex estimates that 2018 production will average 2.06Mb/d, rising to 2.19Mb/d in 2021, according to a report by state news agency Notimex.

Meanwhile, natural gas production averaged 5.09Bf3/d in 2017, down from 5.79Bf3/d in 2016 and 6.40Bf3/d in 2015.

Petrochemical production averaged 6.96Mt last year, compared with 8.96Mt in 2016 and 9.93Mt in 2015.