translated from Spanish: Pemex expects to increase 5.6% of oil production by 2020

By 2020, the government estimates that Petróleos Mexicanos (Pemex) will produce 5.6% more barrels than this year. This would be their first annual increase since 2004, in accordance with the General Economic Policy Criteria presented on Sunday as part of the Draft Budget for Egress 2020.
The Treasury estimates that next year Pemex will produce 1,951 million barrels per day, higher than estimated for this year that was 1,847 million barrels. 
Read: Pemex sells less during the second quarter of 2019 and has a loss of 52 thousand 800 mdp
This, the Treasury says, “reflects the positive effects of the support granted to Pemex by the Federal Government that translates into greater investment in exploration and production.”
For next year Pemex will receive 86 billion pesos: 46 thousand mdp of capitalization and 40 thousand mdp more thanks to a reduction in the tax burden that the oil company had.
“The recovery in the oil production platform expected for the following year will benefit from the tax support that Pemex has received during 2019, as well as those planned for 2020,” the General Criteria states.
Find out: Less tax burden, more oil production and private investment, Pemex’s new business plan
Arturo Herrera, Secretary of the Treasury, stated that between 2012 and 2018 there were 100 thousand barrels less per year; and from January to December last year alone was 300,000 barrels less. 
However, “Pemex in a good business”, Herrera argued because there are expected to be 200 thousand additional barrels which will result in higher oil revenues.
The secretary explained on Monday that thanks to a change in production and exploration strategy Pemex has managed to stabilize and begin to increase its production. 
He said crude oil was stopped in deep water to do so in shallow water and on land, helping to produce more. Herrera emphasized that deep-sea exploration has a longer cycle, as production is seen up to 11 years after exploration began. 
The Treasury also projects that the increase in production will allow the company to offset the effect of the expected lower international prices, which place the Mexican mix at an average annual price of $49 per barrel by 2020.
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Herrera noted that this price per barrel is conservative, as it is expected to be higher for next year. 
The Revenue Act 2020 initiative provides for oil revenues of 987.3 billion pesos, a reduction of 8.8% from those approved in 2019, which were 1,082.3 million pesos. 
According to macroeconomic framework projections, the government estimates that over the next five years Pemex will produce more than 2.5 billion barrels per day by 2024. And it projects that the price of crude oil per barrel fluctuates between $49 and $52.
By 2020, Pemex and its subsidiaries include a net domestic indebtedness ceiling of up to 10 billion pesos and a net external indebtedness ceiling of 1.25 billion pesos. 
 
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Original source in Spanish