Pemex Budget Cuts Threaten Oil Production

Mexico’s state-owned oil giant, Pemex, is facing a significant reduction in its upstream budget for the fourth quarter. According to internal documents, the company plans to cut spending by 20%, or Mxn 26.78bn ($1.38bn), a move that is expected to impact short-term crude production. This cutback follows instructions from Pemex’s new upstream head, Nestor Martinez, to scale back major well repairs and seismic data contracts. Pemex, which produced 1.73 million barrels per day (bpd) of crude and condensates in August, could see production…