PEMEX Output Down 20% From 2004 Peak; Down 7.9% Jan-May 2009 YOY - Rigzone

[hatrack]

Mexican oil giant Petroleos Mexicanos is struggling to meet an ambitious $20 billion investment plan for this year after it nearly quadrupled capital expenditures over the past decade.

Pemex, as the state-run company is known, needs to find new pools of oil to replace traditional fields that are running dry. Pemex said on Wednesday it spent 88 billion pesos ($6.4 billion) during the first half of the year, or 38% of its $16.9 billion exploration and production investment budget.

Pemex's output has fallen by a fifth since peaking in 2004, and tumbled 7.9% during the first five months of 2009 from the year-ago period.

The company invested $15 billion in exploration and production in 2008, the same as oil majors BP PLC (BP) and Petrobras (PBR), according to a recent Pemex presentation. Pemex's total investments, including refining, reached $18 billion last year, up from just $5.1 billion in 1998. This year a combination of a weaker local currency and government revenue shortfalls make it difficult to keep up the pace.

EDIT

http://www.rigzone.com/news/article.asp?a_id=78305

[phantom power]

1. Yeah, but we're crashing our economy as fast as they're depleting! So there!

:woohoo:

[Wednesdays]

2. K&R

:kick: