Robert Morton checks on the damage to his 36-foot sailboat by Hurricane Dolly in Port Isabel, Texas July 23, 2008. (Xinhua/Reuters Photo)

According to experts, Dolly was expected to weaken to a tropical storm later Wednesday evening and flooding was expected in south Texas and northeastern Mexico.

Mexico's state oil company Pemex evacuated Wednesday 66 workers amid fears that Dolly would cause possible damage to its facilities.

More than 20 Pemex workers were killed in October 2007 in a devastating accident at an off-shore platform largely due to bad weather.

Pemex, which produces some 90,000 crude oil barrels per day, said it operated a plan of Answer to Emergency for Hurricanes, in a move to secure its perforation and production facilities and guarantee the supply of oil.

A truck tries to cross a street flooded by Hurricane Dolly in Brownsville, Texas July 23, 2008. (Xinhua/Reuters Photo)