Pemex, which is the popular abbreviation of Petroleos Mexicanos, the oil production firm of the state is getting bankrupt. As the debts are increasing, the administration is planning several steps that are to be taken by the government so as to rescue the company from its increasing debts. Mexico has planned to increase the production of Oil & Gas by somewhere around 50% in the coming 6 years. It has been reported that several contracts regarding the drilling and infrastructure will be disbursed in the month of January in order to develop its 20 fields.
The company has made these announcements in its official statement of last Saturday. Octavio Romero, the CEO of Pemex said in his statement that the newly elected government has planned to increase the investments in the field of exploration by more than 10 percent per year. It will be taking these steps so that in could stabilize the decreasing outputs. He made those announcements while he was presenting new plans for the company. President A.M.L Obrador took over the office on the 1st of December and he has his own plans to revive the company.
One of the several major factors because of which the debt over the company has increased so much is that its crude output has decreased drastically. The company has a peak capacity of producing 3.4Mn B.P.D, which the company used to produce in the year 2004. But now, this figure has reduced to 1.8Mn BPD at present. With the help of this new plan, it has been estimated that the total output of the company will increase to 2.6Mn B.P.D till the year 2024. The production of Gas will also increase by 50%. The company has said that the decreasing output will get stabilized in the next few months and will increase gradually.