Pemex Cuts Output Estimate Second Time in Month on Water Levels

Aug 22, 2014 4:00 pm ET

Aug. 22 (Bloomberg) -- Petroleos Mexicanos lowered its previously reported and estimated oil production for this year to reflect water content and inaccurate measuring systems.

Pemex, as the state-owned producer is known, said in an e- mailed statement today that production through July averaged 2.34 million barrels a day compared with a previously reported 2.47 million. Crude output was overstated as the company reported water as crude and lost additional barrels due to inefficient measuring and separation systems and evaporation.

Facing a 10th straight year of production declines, the Mexico City-based company cut its 2014 output forecast to 2.35 million barrels a day, it said in today’s statement. The revision is the second in a month, after Exploration and Production Director Gustavo Hernandez lowered the forecast to 2.44 million barrels from 2.5 million on July 25.

Pemex, which is preparing to form partnerships with private producers for the first time in seven decades, had reported production of 2.48 million barrels a day through June, while its distribution system processed 2.32 million barrels a day, according to the National Hydrocarbons Commission.