Mexico Energy Reform to Target Deep Water - Lawmaker

But the company lacks technology, experience and results tapping deep water wells, even as on the U.S. side of the Gulf production has been growing for decades.

Mexico also has the world's fourth-largest shale gas reserves, an estimated 681 trillion cubic feet of recoverable gas resources in deposits that may contain rich pockets of both natural gas and oil, according to U.S. Energy Information Administration data.

THREE VERSIONS

Efforts to open up Pemex to more private investment have faced an uphill battle in Mexico, where the country's oil monopoly is deeply integrated into the national psyche.

Bernal said Pena Nieto's bill will amend articles 27 and 28 of the constitution to allow greater private sector participation, but would not detail the new proposed language.

Article 28 defines oil and gas as a strategic sector where the public sector exercises exclusive control. Article 27 currently bans the government from granting private sector concessions for oil or gas, making their exploitation the sole preserve of the Mexican state.

Bernal would not say exactly how secondary laws would deal with payment to private companies to develop Mexico's deep water and shale riches, but he did identify three possibilities.


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