Mexico's Finance Ministry estimates crude oil production at 129,000 bpd less than target

Mexico has lowered its average crude oil production estimate for this year, citing "prudent" approach that takes into consideration the trajectory of the early months of the year.

This would put the country under the ambitious target of 1.8 million bpd set by President Claudia Sheinbaum.

The revised estimate of the Finance Ministry in its preliminary budget criteria, published late Tuesday, estimated that production would average 1.762 millions bpd this year. Next year it will increase to 1.775million bpd.

The document states that it takes into consideration "the development of new strategic project and the eventual inclusion of additional fields, if exploration proves to be favorable."

In response to an inquiry, the Treasury Department clarified that the new projections included crude oil and condensate from the state-owned company Pemex as well as private companies operating within the country.

Pemex is still the world's largest energy producer. Its dominant position has been further strengthened by a recent energy reform.

Pemex, however, has not been able to stop the decline. Official data show that the production, including partners', averaged 1,619 million bpd during the first two month of the year.

The government, which is burdened with financial and provider debts totaling tens and tens billions of dollars, has announced that new contracting arrangements for private companies would allow the state-owned company to reach its 1.8 million BPD target. (Reporting and writing by Stefanie Eschenbacher).

(source: Reuters)