May 28 (Bloomberg) -- Petroleos Mexicanos, the state-owned oil company, will miss its annual production target of 3.1 million barrels a day as output falls faster than expected at its largest oil field, said Mexican Energy Minister Georgina Kessel.

Pemex, as the Mexico City-based company is known, will produce less than 3 million barrels a day this year, Kessel said during a press conference in Monterrey.

``We're trying to reach 3 million barrels, but we're going to be below that,'' Kessel said.

Mexico is missing out on 150 billion pesos ($14.5 billion) of annual revenue as declining production keeps Pemex from benefiting fully from record oil prices, Kessel said, in comparing current production levels to what was achieved in 2004.

The company is trying to boost output at other fields to make up for plunging results at Cantarell, the largest offshore oil field in the world. Production at Cantarell fell 33 percent to 1.07 million barrels in April from 1.59 million barrels a year ago.

Pemex Chief Executive Officer Jesus Reyes Heroles has said the company's goal is to maintain production at 3.1 million barrels a day until 2012. In April, daily production dropped to 2.77 million barrels from 3.18 million barrels in the same month a year ago. For the first four months of 2008 daily production was 2.88 million barrels, down from 3.16 million barrels a year ago.

Mexican Finance Minister Agustin Carstens said yesterday that Pemex would likely end the year with average daily production of 2.95 million barrels, which would be a 4.2 percent decline from 3.08 million barrels in 2007.

Crude oil for July delivery fell as much as 89 cents, or 0.7 percent, to $130.24 a barrel in after-hours trading today on the New York Mercantile Exchange.

To contact the reporter on this story: Thomas Black in Monterrey at tblack@bloomberg.net and Andres R. Martinez in Mexico City at amartinez28@bloomberg.net

Last Updated: May 28, 2008 23:36 EDT