Pemex chief: Monopoly must look to deep water deposits

The Associated Press

The head of Mexican state oil monopoly Petroleos Mexicanos said Feb. 2 the company needs to look to deepwater deposits as it pursues long-term goals of raising oil production, but lacks the technology to do so.

At a news conference, Raul Munoz said the oil concern known as Pemex is currently allying itself with international oil companies to explore ways it can acquire the necessary technology.

Pemex has explored only 18 percent of its territory likely to contain oil and gas, and of the remaining four-fifths, much is in deepwater, Munoz said, adding that Pemex’s future is “virtually tied to this subject.”

Last year, Pemex produced a record 3.37 million barrels a day of crude oil, and plans to add an additional 80,000 daily barrels this year on its way to meeting a 2006 goal of 4 million barrels a day.

Munoz said Chinese firms were among about 10 companies with which Pemex is exploring possibilities for acquiring deepwater technology, but gave no further details.

Under the constitution, Pemex has a monopoly on all upstream oil and gas activities. While it has a refining joint venture with Royal Dutch/Shell in Texas, Mexico does not allow production joint-ventures.

In June 2000, Mexico and the United States reached an accord to divide up a 6,565 square mile area in the Gulf of Mexico that could contain significant hydrocarbon reserves. Mexico was apportioned 62 percent of the area.