Pemex, Mexico’s state-owned oil company, faces a persistent decline in crude oil production. November marked the 24th consecutive month of year-over-year decreases.
The company pumped 1.407 million barrels per day, a 10.2% drop from the previous year. This output represents Pemex’s lowest production level since May 1979.
The company struggles with mounting debts to suppliers, causing some to reduce or halt their activities. Pemex owes providers a record 402.874 billion pesos as of the third quarter of 2024.
President Claudia Sheinbaum promises to settle these debts by February through partial payments. The production slump extends beyond crude oil. Condensate extraction fell 8.1% to 267,000 barrels daily in November, its lowest since December 2022.
Total liquid hydrocarbon production, including crude and condensates, decreased by 9.9% to 1.673 million barrels per day. This figure marks the lowest output since July 2020.
Pemex now reports crude and condensate production together, with condensates accounting for 15.5% of liquid hydrocarbon output. From January to November, liquid hydrocarbon production fell 5.6% to 1.772 million barrels daily.
Pemex’s Production Decline and Future Goals
This decline represents the first year-over-year drop since 2019. Seven of Pemex‘s eleven major production assets experienced decreases. Cantarell, once Mexico’s offshore crown jewel, saw the steepest decline at 12.9%.
The Tabasco coast and Bellota-Juco assets also suffered significant reductions. Ku-Maloob-Zaap, Pemex’s main asset, decreased by 4.4% but still contributes a third of total production.
The Sheinbaum administration sets a national production goal of 1.8 million barrels daily for this term. This target includes output from private operators holding contracts from previous administrations. Pemex aims to average 1.702 million barrels daily from 2025 to 2030.
The government plans to focus on strategic fields like Zama and Trion, where Pemex partners with private companies. It also seeks to promote public-private projects to boost reserves and production, maintaining Pemex’s controlling stake.
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