Pemex leaves 2011 output target unchanged at 2.6 million b/d

Mexico’s state-owned Petroleos Mexicanos, which announced a boost in oil output for August, will keep its 2011 crude oil production target of 2.6 million b/d unchanged at yearend.

Pemex said its production for the month of August rose by 22,000 b/d over July, bringing the firm’s average production to 2.55 million b/d for the first 8 months of 2011.

The increase, Pemex said, was “in line with the production target set at the start of 2011.” But it lagged the 2.559 million b/d produced in August 2010.

This year’s increased output is considerably lower than in 2004 when Mexico produced 3.38 million b/d. The drop off since 2004 is attributed to falling production at offshore Cantarell.

However, Pemex hopes boost oil output this year to 2009 levels by increasing production at other fields, especially at Ku-Maloob-Zaap which it said produced an average of 839,200 b/d in 2010.

Pemex also underlined progress made at the firm’s Chicontepec onshore development in the state of Veracruz, which has seen a 39% increase in production in 2011 over 2010.

The state oil company said output at Chicontepec rose to 58,000 b/d at end-August from 44,000 b/d at the beginning of the year, attributing the increased production to improved technology and better operational practices.

IHS Global Insight analyst Juliette Kerr said that Pemex's business plan includes crude production targets of 2.7 million b/d by 2012 and 3.3 million b/d by 2024 – “a goal that still seems optimistic, especially considering delays in the award of performance-based service contracts for deepwater areas.”

Contact Eric Watkins at [email protected]