Mexico Marks Rise in Oil, Condensate Output in January

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Mexico began this year with oil and condensate production of 1.934 million barrels per day (BBL/d), the strongest output since July 2017, according to the National Commission of Hydrocarbons (CNH).

Oil output stood at 1.648 million BBL/d in January, the most since the same month last year. Condensate production was 286,000 BBL/d, the highest volume since at least 2016.

Pemex, the national oil company, registered oil output of 1.544 million BBL/d, the strongest in a year, while producing all of Mexico's condensate.

The significant increase in condensate output came from the Pemex-operated Quesqui field, which reached its record condensate volume in January at 191,000 BBL/d, about 13% more than the previous month.

Private companies maintained stable oil production of nearly 100,000 BBL/d.

These numbers represent a positive sign for Mexico, which has experienced years of declining production. Over the last few years, Andres Manuel Lopez Obrador's government has supported Pemex and the oil and gas sector, prompting their development.

Despite this support, Pemex has failed to reach some of the goals set by the authorities over the last few years. Pemex, for its part, continues to face financial setbacks as it reported net losses in the last quarter.

Pemex's refinery runs in Mexico remained stable in January at 835,000 BBL/d, on par with the previous month and slightly higher than the average seen throughout 2022. Nevertheless, this utilization rate is only about half of the company's 1.65 million-BBL/d downstream capacity. Pemex's throughput rates in Mexico have been below or close to the 50% average for years.

Additionally, the company has constantly faced operational incidents in its downstream assets. Last week, three of Pemex's assets, including its Deer Park refinery in Texas, were hit by fires. However, Pemex's refining volumes are expected to climb as the new 340,000-BBL/d Dos Bocas, or Olmeca, refinery goes online. The downstream unit has been one of Lopez Obrador's flagship projects.

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