Pemex narrows losses

Pemex announced its quarterly net results late on Monday, revealing a significant reduction in fourth-quarter losses on account of increased operational efficiency, lower costs and improved oil prices.

Pemex posted a loss of USD 1.58 over the final three months of 2016, compared with USD 9.8 billion over the same period one year earlier. It achieved the results in part due to a 26% decrease in operational costs.

Oil production averaged 2.15 million bopd last year, 5% less than the volumes seen in 2015. Output during the fourth quarter of 2016 was recorded at 2.07 million bopd, down 9.1% year-on-year.

Daily natural gas production fell by 14.7% to reach 129.7 mcm (4.58 bcf) in the fourth quarter. Measured over the full-year 2016, output was down 11.6% to 137.6 mcm (4.86 bcf) per day.

“After a complicated year for the international oil industry, the great efforts made by the current management of Pemex and the execution of the Business Plan, of which profitability is the axis, are beginning to yield positive results,” the company said in a statement.

“The current year represents a point of inflection for Pemex, with stable finances and a positive trend, which can, however, doubtlessly be improved,” it concluded.

In its earnings release, Pemex also mentioned its target date for Trion first oil. The deepwater project, its first joint venture in company history, should begin producing in 2023. Along with partner BHP Billiton, Pemex aims to achieve the plateau production ate of 120,000 bopd two years later.