Pemex Plans E&P Budget of $10 Billion for 2003

Pemex is budgeting $10 billion for its exploration and production unit this year in effort to slow the decline of reserves and to boost production. In a statement, Pemex said its 2003 budget for E&P, authorized by Congress, was its biggest ever, amounting to 108.4 billion pesos (around $10 billion), compared to around $9.6 billion in 2002. The company said that if it has the same amount on average to invest each year, "Pemex will be in a position to increase production of crude by 34 percent and natural gas by 47 percent during this government's six-year term and reverse the declining trend in reserves." Pemex forecast crude oil production would reach 4.0 million barrels per day (bpd) by 2006 compared with 3.0 million bpd it produced in 2000. This year Pemex is targeting record crude oil production of 3.5 million bpd, an 11 percent rise compared to 2002. Pemex plans to raise natural gas production by 2.217 billion cubic feet per day (Bcfd) to 7.0 Bcfd by the end of 2006, of which 2.0 Bcfd is expected to come from the Burgos basin near the border with Texas.