UPDATE 2-Mexico has not cut Cantarell oil output goal-Pemex

Wed Mar 4, 2009 12:20am IST

Related Topics

(Recasts with comment from Pemex reaffirming January target, adds quotes, details on investments, byline)

By Robert Campbell

MEXICO CITY, March 3 (Reuters) - Mexico reaffirmed its goal of producing 756,000 barrels per day of oil this year at its ailing Cantarell field, despite a presentation to bondholders on Tuesday that appeared to show a 7 percent cut in the closely watched target.

"Estimated crude oil production for the Cantarell project is approximately 700,000 bpd during 2009," state oil company Pemex [PEMX.UL] said in a document accompanying its fourth-quarter results presentation.

A Pemex spokesman later denied that the figure implied a change in production expectations at the struggling oil field.

"The forecast from the beginning of the year that Cantarell will produce about 750,000 bpd is unchanged," Pemex spokesman Carlos Ramirez said.

Pemex Chief Executive Jesus Reyes Heroles announced this year's target of 756,000 bpd for Cantarell in a presentation to the Mexican Senate in January.

Oil market watchers and, increasingly, foreign investors in Mexico are paying close attention to Cantarell's decline, which has placed Mexico's position as a major oil exporter at risk, threatening a major source of government revenues and foreign exchange.

Pemex has struggled to control the relentless decline of Cantarell since its production peaked in 2004 at more than 2 million bpd, nearly two-thirds of Mexico's total oil output.

Mexican crude oil output fell in January to 2.685 million bpd, its lowest level since Nov. 1995 and 9.2 percent lower than a year earlier. Production at Cantarell slid 38 percent to 772,000 bpd.

Pemex plans to pump between 2.7 million and 2.8 million bpd of crude in 2009, with the decline in output from Cantarell being compensated by additional production from new projects expected in the second half of the year.

The company plans to invest $16.899 billion this year in new oil production capacity, including nearly $2.2 billion at Cantarell to optimize production. (Editing by John Picinich)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage