Mexico’s Pemex To Explore For Oil In The US
From Huffington Post
Mexico’s state-owned oil company says it will form a new entity to explore and produce shale gas and deep-water oil in U.S. territory.
The plan will help Petroleos Mexicanos, known as Pemex, acquire drilling techniques it now lacks for complicated terrain in Mexico, chief executive Emilio Lozoya said in an interview with the Wall Street Journal.
Pemex confirmed the plan Monday.
“The geology is similar and we can benefit from numerous areas of collaboration with international oil companies,” Lozoya said.
Pemex has so far been unable to exploit its shale and deep-water reserves, and the Mexican constitution limits its ability to hire outside expertise in Mexico. The government has proposed allowing Pemex to enter profit-sharing contracts with private companies and let outside companies refine and transport oil inside the country.
That would require politically controversial changes to the constitution, which states that Mexico’s oil belongs to the state.
Mexico’s largest leftist party is leading opposition to opening up Pemex to more private investment as a way to reverse its declining production.
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