Pemex Says Daily Output May Rise, as Cantarell Falls
By Andres R. Martinez and Thomas Black
Feb. 29 (Bloomberg) -- Petroleos Mexicanos, the state- owned oil company, expects to increase oil production in 2008 after a three-year decline, even as output at its largest field drops as much as 18 percent this year.
Overall production may rise to 3.1 million barrels a day this year, said Carlos Morales, director of exploration and production for Pemex, as the Mexico City-based company is known, during a fourth-quarter conference call today. Pemex's production was 3.08 million barrels a day in 2007.
The company's overall budget for next year will rise 28 percent to a record 218 billion pesos ($20.3 billion). Eighty- four percent is earmarked for exploration and production.
``They are still dedicating too much money to production,'' said David Shields, an independent energy analyst, in an interview in Mexico City today.
Pemex said the spending will help them boost production to 3.1 million barrels, a goal that Chief Executive Jesus Reyes Heroles set for the next five years. Most of the money will finance drilling new wells in the onshore Chicontepec field.
Pemex's largest field, the offshore Cantarell field, will produce between 1.2 million and 1.3 million barrels a day this year, Morales said. Pemex pumped 1.47 million barrels a day from the field, the third-largest in the world, in 2007.
No `Clear Solution'
``I don't see any clear solution to compensating for the decline at Cantarell,'' Shields said.
Last year's production decline at Cantarell was larger than the 15 percent forecast by the company. The field's annual output fell 18 percent compared with the previous year.
President Felipe Calderon will release details about a plan to open the state oil industry to foreign and private investment next month, said Energy Minister Georgina Kessel on Feb. 14.
Pemex needs to drill in waters deeper than 5,000 meters to offset Cantarell's decline and boost reserves, she has said.
Pemex plans to release updated data on its reserves in March.
To contact the reporter on this story: Andres R. Martinez in Mexico City at amartinez28@bloomberg.net Thomas Black in Monterrey at tblack@bloomberg.net
Last Updated: February 29, 2008 16:00 EST
bloomberg.com |
