Mexico halts exploration projects amid falling oil prices

With a promising year planned of large developments and new exploration, Mexico’s state oil company has decided to suspend several of its deep water projects.

Pemex made the announcement Wednesday as global crude prices continue to show instability. The suspension of projects also means the loss of jobs, which are an after-effect of the 11.5 percent budget cuts.

Pemex chief executive officer Emilio Lozoya told Radio Formula that, “The exploration of some deep water deposits, especially the riskier ones and those that have not yet begun, will be suspended,” adding there will also be “major” job cuts.

Pemex has been in the negative since 2013, reporting $4.3 billion losses in its third quarter last year. In an attempt to rectify the problem, Mexican President Enrique Pena Nieto generated a reform bill to allow foreign investors to bid on Mexican projects.

In 2014, Mexico’s crude averaged $86 per barrel but with the global dip in oil prices, a barrel of Mexico’s crude currently sits at around $50.57.