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 Business News | March 2006 
Fox to Announce New Deep-Water Oil Find
 Associated Press
| | Efforts by the Fox government to ease legal restrictions on private investment in the energy sector have been unsuccessful in the opposition-dominated Congress. |
President Vicente Fox said he will soon announce another oil find in deep waters of the Gulf of Mexico, the business magazine Expansion reported this week.
In its latest edition, Expansion cited Fox as saying in an interview that the magnitude of the deposit has yet to be determined.
Officials at Mexican state oil monopoly Petroleos Mexicanos, or Pemex, declined to comment.
With production at Pemex's giant Cantarell oilfield starting to decline this year, Pemex sees deep water exploration among its best bets to increase oil and gas production and build up declining reserves.
But the company doesn't have the know-how to develop deep-water reserves, and the Mexican Constitution bars it from forming partnerships with companies that have the means to get the oil out.
"The country lacks the technology and economic resources to drill in its deep waters," Expansion cited Fox as saying. "We are depriving ourselves of access to these large deposits in the Gulf of Mexico which the U.S. and Cuba are already exploiting."
Efforts by the Fox government to ease legal restrictions on private investment in the energy sector have been unsuccessful in the opposition-dominated Congress.
Pemex hit its first deep-water oil in late 2004, when it contracted Diamond Offshore Drilling to drill a well at a depth of 681 meters (2,235 feet) in the Campeche Sound, producing an initial flow of 1,200 barrels a day of very heavy crude. |
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