(Adds timing of bids in second paragraph.)

June 21 (Bloomberg) -- Petroleos Mexicanos, Latin America’s largest oil producer, said it will rent eight offshore drilling rigs for more than $1.2 billion.

The state-owned company will publish a bidding schedule in July and plans to begin operating the rigs at the end of this year and 2012’s first quarter, it said today in a statement. The company will seek seven platforms that can operate at a depth of 105 meters (344 feet) and one at 90 meters.

Pemex, based in Mexico City, plans to spend $23 billion this year to boost oil production. Output dropped to 2.576 million barrels a day in 2010, the lowest daily average since 1990, and has slipped for six straight years.

Pemex also plans to buy five land-drilling rigs for about $200 million, it said.

--Editors: Robin Saponar, Dale Crofts

To contact the reporter on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.