Mexico's Pemex October Crude Output Down 8.7%

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

Mexican crude-oil production fell 8.7% in October from a year earlier to 2.76 million barrels a day, Petroleos Mexicanos reported on its Web site Friday.

For the first 10 months of the year, average production was down 9.6% to 2.82 million barrels a day due to a 31% drop at the giant Cantarell oil field.

Oil exports were at 1.43 million barrels a day in October, down from 1.5 million barrels a day a year earlier, but up from 1.06 million barrels a day in September. In September Pemex had to cancel shipments to the U.S. because refiners in the Gulf Coast were still repairing storm damages from the hurricane season.

Natural-gas production hit a new record of 7,183 billion cubic feet a day in October, up from 7.02 billion in September and 6.35 billion in October 2007. Natural-gas output has been boosted by production at onshore fields in the Burgos basin and Cantarell, where many wells that used to produce oil are now producing natural gas as the oil layer of the reservoir recedes.

The average export price of Mexican crude slipped to $63.60 a barrel last month, down from $92.66 in September and $72.08 in October 2007.

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