Mexico's January-July Oil Output Down at 2.85MM B/D

MEXICO CITY (Dow Jones Newswires), August 21, 2008

Average Mexican oil production fell 10% during the first seven months of this year to 2.85 million barrels a day, Petroleos Mexicanos reported Thursday.

For July, output fell by 10.7% on year to 2.78 million barrels a day.

State-run Petroleos Mexicanos is suffering from steep production declines at the giant Cantarell offshore oil field, forcing the company to scale back its production estimates for the next few years. Pemex hoped to produce over 3 million barrels a day this year, but recently said average production would be much lower at around 2.85 million barrels a day.

Pemex said it spent $14.8 billion dollars during the period on fuel imports. Mexico imports gasoline and diesel and then sells it at a discount to international prices. Gasoline imports rose to 342,500 barrels a day during the period.

Pemex said crude oil exports fell 16.3% during the period to 1.44 million barrels a day. July exports fell 21.7% on year to 1.38 million barrels a day. Pemex has given preference to its domestic refining network, and has therefore cut exports as overall production wanes.

The average price of Mexican crude exports in July was at $122.79 a barrel.

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