Pemex Sees Drop in Oil Output, Primary Surplus in 2017
Ailing Mexican state oil producer Pemex will show a primary surplus next year even as production continues to slide, its chief executive officer said on Thursday.
Pemex will produce 1.944 million barrels of crude per day next year, on average, CEO Jose Antonio Gonzalez said, down from this year's pace of 2.1 million and well below a peak of 3.4 million per day reached in 2004.
Pemex has been hurt by a slump in oil prices as well as big annual outlays to fund the government.
But Gonzalez, speaking at an event in Mexico City, said Pemex aims to recover "financial equilibrium" in 2019 or 2020 and beef up efforts to reduce fuel theft.
A primary surplus is achieved when income is greater than spending and interest payments are excluded.
(Reporting by Ana Isabel Martinez; Editing by Jonathan Oatis and Jeffrey Benkoe)
(Reporting by Ana Isabel Martinez; Editing by Jonathan Oatis and Jeffrey Benkoe)