Sources say that the head of Pemex’s production division will step down soon.

Three sources have confirmed that Mexico's state-owned oil company Pemex will replace its head of exploration and production just months after his return to the position. The company is struggling to stop a drop in crude output.

Angel Cid Munguia resumed his leadership role at Pemex Exploration and Production in early May. Angel Cid?Munguia?resumed leadership of Pemex Exploration and Production (PEP) in early May.

Sheinbaum has promised to maintain a?national oil production of 1.8 million barrels a day until the end of her tenure in 2030. This 'target' is becoming more difficult to achieve as the mature fields are declining, new discoveries are falling short, and offshore projects Zama, Trion and Pemex, which it is developing with partners, slow down.

Two sources have said that Octavio Barera Torres will be the successor to Cid. He was appointed as PEP's deputy director for design, engineering, and project execution in May, part of a restructuring of the company.

One source claimed that Cid had not delivered on his promises to increase production. He was an advisor to Energy Minister Luz E. Gonzalez before returning to Pemex.

Pemex has not responded to an immediate request for comment about Cid's potential departure. This would happen after the signing the first mixed contracts. A new partnership scheme with private firms that aims to increase oil and gas production. Pemex’s debt burden has hampered the program, which has attracted little interest so far from industry.

Emails seeking comments on the new leadership at PEP were not responded to immediately by Cid and Torres.

This week, a report stated that Pemex has awarded five of 11 mixed contracts they hoped to complete before the end of the year. Deals, it said, 'could add approximately 70,000 barrels a day (bpd), to its current production of 1.6 million bpd. These awards have been repeatedly delayed.

Pemex is also in debt of more than 100 billion dollars despite the government's tax breaks and multi-billion dollar capital injections.

Pemex's data shows that between January and September the company received about 380 billion pesos (about 21.13 billion dollars) in government contributions. This is a 150% increase from the same time period last year.

(source: Reuters)