Mexico: Crude Output to Hit 2.6 Million bpd

Mexican President-elect Andres Manuel Lopez Obrador said on Saturday that crude production in the country is expected to reach at least 2.6 million barrels per day by the end of his administration, up from the current level of 1.8 million bpd.

Obrador added that new tenders for drilling oil wells announced last week would take place on state oil firm Pemex’s fields and shallow waters, Reuters reported.

“The public investment will be dedicated to extracting petroleum in Pemex’s territory,” he said.

“Platforms that are not being occupied will have work again.”

Obrador said earlier this week that the tenders will begin in December, but did not provide further details.

"To boost production, Pemex will need to strike agreements with companies it has traditionally partnered with to begin drilling or tap existing wells," he said. Pemex’s production has hit its lowest level in decades, with its six refineries operating at just 40% capacity, increasing the need for fuel imports.

Obrador, who takes office in December, has long criticized the outgoing government’s move to open the oil industry to private capital. The leftist has vowed to strengthen state oil company Petroleos Mexicanos, known as Pemex, and refine more crude in Mexico.