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.