Mexican refinery Olmeca hits new high in March, but still short of target

By Ana Isabel Martinez

MEXICO CITY, May 1 (Reuters) - Mexican state energy company Pemex's new Olmeca refinery in March posted its highest crude processing and fuel production figures since it began reporting data in mid-2024, boosting the company's refining arm even as its hydrocarbon output declines.

However, the refinery, a signature project of former President Andres Manuel Lopez Obrador, is still far from reaching the production goals announced by his administration.

According to figures published Wednesday night, the refinery processed 102,938 barrels per day (bpd) in March, surpassing its prior high of 84,128 bpd in August 2024, but still about 30% of its total capacity of 340,000 bpd.

Olmeca produced 50,702 barrels per day of refined products in March, including 35,096 bpd of ultra-low sulfur diesel, followed by some petroleum coke and only a small amount of gasoline.

Processing at Olmeca - also known as Dos Bocas - raised total output across Pemex's seven domestic refineries to 1.01 million bpd, up 13% from February but 4.4% below March 2024, when operations were still minimal.

The refinery, which cost twice the government's original $8 billion estimate, has struggled to run consistently - processing just 6,797 bpd in February and none in January due to high salt and water levels in Pemex's crude.

Pemex reported on Wednesday that the refinery was in the process of restarting following an incident a few days earlier.

The heavily indebted company reported a $2.12 billion net loss in the first quarter, with output down 11.3% year-on-year. March production also fell 11% from a year earlier, to 1.6 million bpd.

President Claudia Sheinbaum has vowed to raise output to 1.8 million bpd, but aging fields and underperforming new ones pose challenges.

Several media outlets and two sources said Wednesday night that Pemex's exploration and production chief, Nestor Martinez, would step down, to be replaced by a former official. Pemex did not respond to Reuters' requests for comment.