Mexico will defer oil exploration projects to slash spending

The Associated Press

Mexico's state-run oil company says it is halting some of its exploration and production projects in an attempt to counter the effects of the drop in international oil prices.

Oil worker Vicente Gonzalez looks up as the drill is pulled upwards on the Centenario deep-water drilling platform off the coast of Veracruz, Mexico in the Gulf of Mexico. Mexico’s state-run oil company said Monday, Feb. 29, 2016, that it is halting some of its exploration and production projects in an attempt to counter the effects of the drop in international oil prices. (AP Photo/Dario Lopez-Mills, File)

 

MEXICO CITY (AP) — Mexico's state-run oil company says it is halting some of its exploration and production projects in an attempt to counter the effects of the drop in international oil prices.

Petroleos Mexicanos director Jose Antonio Gonzalez said Monday that Pemex will cut about $5.5 billion from its 2016 budget. That will result in a reduction of about 100,000 barrels a day in production. By the end of the year, he predicted daily production would be 2.13 million barrels per day.

Gonzalez said 64 percent of the spending cut will be achieved through deferring projects, including plans for deep-water exploration.

He did not say how many workers would lose jobs.

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