PEMEX Reports 5.9% Drop In YOY Production - Govt. Budget Slips On Lower Income

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MEXICO CITY, Oct 31 (Reuters) - Mexico expects a much smaller budget windfall from foreign oil sales this year, due to lower production levels and disruption to exports from bad weather, a Finance Ministry official said on Wednesday.

Mexico has booked billions of dollars in oil revenue surpluses in recent years as it sold crude above the price forecast in the national budget. By the end of September, oil revenues were at 608 billion pesos ($55.6 billion), slightly below the 2007 budget forecast. "Up to now, it's very small (the windfall)," the Finance Ministry's chief economist Miguel Messmacher told a news conference.

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State-owned oil monopoly Pemex reported a 5.9 percent year-on-year drop in oil output in the third quarter, due largely to declining yields at its Cantarell oil field, and exports have been hit this year by a series of storms in the Gulf of Mexico. Past oil revenue windfalls have been split between federal infrastructure projects and state-level budgets.

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http://uk.reuters.com/article/oilRpt/idUKN3160585620071031