Pemex has managed to reverse the decline in investment and oil production

Tuesday 20 October 2020. In the first two years of its current administration, Petróleos Mexicanos (Pemex) reversed the decline in investment, slumped production, and was able to refinance its largest liability in history, according to reports from the state’s producing company.

In percentage terms, in the second quarter of 2020, the oil and gas extraction activity contributed 4 percent to the Gross Domestic Product (GDP).

Between 2014 and 2018, Pemex investment decreased by an average of 13.7 percent annually, from 359 billion pesos to 189 billion pesos in that period.

Without the increase in debt, the oil company increased by 6.8 percent, from 189 billion in 2018 to 201 thousand in 2019, and it is expected to close the year at 305 billion pesos, an increase of 50 percent.

Regarding the extraction of crude oil, a turning point was reached and the decline in production stopped, as it reached 1928 thousand barrels per day in January 2018, and decreased to a record level in the last 14 years, in January 2019, to 626. 6 million barrels per day. Then, in March 2020, the extraction reached one million 752 thousand barrels to close in August at one million 669 thousand barrels, after complying with the reduction resulting from the agreement with OPEC +, in the months of May, June and July from this analogy.

Once agreed with OPEC to cut production by 100,000 barrels per day, starting in May and June, and later extended until July, the technical area of Pemex Exploración y Producción began with the gradual opening of wells that were closed. Comply with the said agreement.

Additionally, Pemex has been able to open new projects in record time. Thus, in 1.7 years its volume reached five times the size of private sector participants, and it took a third of the time to implement private sector fields.

Pemex has started developing new fields, 15 of which have already started production with at least one well.

Official information indicates that at the end of the third quarter of the year, the production of new oil fields reached 121,700 barrels per day, while private fields produced 24 thousand barrels per day after six years.

In addition, in current management it has executed the largest refinancing operations in Pemex history with more than $ 30 billion in restructured liabilities.

Despite the precarious situation in which previous administrations left the Pemex with a high debt exceeding $ 107 billion for the 2021 federal budget, Pemex estimated that 897,170 million would be provided to the public treasury for direct and indirect contributions.