Pemex On Track for Oil Production Target Amid Increasing Investment

---

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)

---

Summary

Pemex seeks to stabilize oil production at 1.8 million BBL/d over the next decade. The Mexican company's investments have increased thanks to the Ministry of Finance's financing plan.

---

Pemex's Oil Production

Pemex, Mexico's state oil company, reported that oil production for 2025 will reach 1.8 million barrels of oil per day (BBL/d) in line with the national strategic plan for 2025-2035.

According to Pemex's data, oil production from January to October stood at 1.61 million BBL/d, compared to 1.76 million BBL/d during the same period last year. Including liquid hydrocarbons from Pemex's plants, production in the first 10 months of the year reached 1.74 million BBL/d.

Pemex's oil production has been declining for over two decades, from the peak of 3.4 million BBL/d in 2004, driven by the natural decline of mature oil fields and lower investment in upstream operations.

The previous government of Andres Manuel Lopez Obrador briefly stabilized oil production, starting at 1.70 million BBL/d in 2020 and reaching 1.87 million BBL/d in 2023.

Yet, the government of Claudia Sheinbaum is facing new declines in production as fields continue to age. As a result, the president is proposing a public-private partnership to help Pemex maintain current production levels. The idea is to leverage private participation through existing contractual schemes and new mixed-investments contracts.

"By 2026, the investment will be complemented by private participation through existing contractual schemes and new mixed investment contracts in the process of being awarded, taking into account the geological maturity of the fields," the company said in a statement.

Investment into Operations

From January through November, the Mexican company invested 205 billion Mexican pesos (about US$11.4 billion) in line with this year's budget.

To further strengthen its financial position, Pemex raised more funds through an investment financing program implemented by the Ministry of Finance and Public Credit through the National Bank of Public Works and Services (Banobras).

Under the scheme, Pemex said 70 billion pesos (approximately US$3.9 billion) were channeled to physical investments between September and November, and another 120 billion pesos (US$6.6 billion) are planned to be invested in December, taking capital expenditures paid through the program to 190 billion pesos (US$10.5 billion). Combined, this implies total physical investment of roughly 400 billion pesos (US$22.2 billion).

For next year, the Mexican company expects to physically invest 17.7% more than this year's funds, supported by 60 billion pesos (US$3.3 billion) from the financial program, according to Pemex's statement.

Key Takeaways

• Pemex expects to close the year with oil output of 1.8 million BBL/d.
• The company's physical investments from January to November totaled 205 billion pesos (US$11.4 billion).
• Next year's investment budget is 17.7% more than in 2025.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).