MEXICO CITY, April 2 (Reuters) - Mexico lowered its

estimate for average crude oil production for this year by

129,000 barrels per day (bpd), citing a "prudent approach" that

takes into account the trajectory of the first months of the

year.

This would bring the country below the ambitious 1.8 million

bpd target set by President Claudia Sheinbaum.

In its revised estimate, the finance ministry estimated in

its preliminary budget criteria published late on Tuesday that

production will average 1.762 million bpd for this year and then

increase to 1.775 million bpd next year.

It takes into account the "development of new strategic

projects and the eventual incorporation of additional fields if

exploration proves favorable," according to the document.

The treasury department specified, in response to a Reuters

inquiry, that the new projections include crude oil and

condensate production from the state company Pemex and private

companies operating in the country.

Pemex remains by far the largest producer, and its dominant

position was strengthened even further by a recently approved

energy reform.

However, Pemex has failed to halt the sustained decline.

Production, including partners, has averaged 1.619 million bpd

in the first two months of the year, official data shows.

Burdened with tens of billions of dollars in financial and

provider debt, the government has said that new contracting

schemes for private companies will allow the state company to

increase production and reach the 1.8 million bpd target.