Mexico's Pemex appoints new head of production unit, internal documents show

By Adriana Barrera

MEXICO CITY, Dec 23 - Mexico's state-owned oil company Pemex has appointed Octavio Barrera as the new head of its exploration and production arm, effective Wednesday, CEO Victor Rodriguez announced on Tuesday in an internal company document reviewed by Reuters.

Reuters reported last week that Angel Cid was due to step down from his role as head of Pemex Exploration and Production (PEP) in the coming days, just months after returning to the position, as the company struggles to stem a decline in oil output.

Reuters also reported that Cid would be replaced by Barrera, an electronics engineer appointed in May as deputy director of design, engineering and project execution at PEP as part of a company restructuring.

According to the official letter, dated Tuesday and signed by Rodriguez, Barrera will hold the position as “acting substitute,” but will perform all the duties established in the company’s bylaws.

Pemex did not immediately respond to a request for comment from Reuters.

Pemex is grappling with more than $100 billion in debt despite multibillion-dollar capital injections and tax breaks from the government.

The leadership change comes amid the company's attempts to increase oil production, currently at 1.6 million barrels per day (bpd), and as it searches for alliances with companies to reach the national oil output goal of 1.8 million bpd.