Oilfield Service Majors Eye Gas Project in Mexico's Burgos Basin

Pemex confirmed Wednesday that oilfield service majors Weatherford, Halliburton and Schlumberger have submitted proposals to secure a natural gas drilling contract in Mexico's Burgos Basin.

State-run Pemex is hoping to increase its natural gas output in the Burgos region, which pumped 22% of Mexico's gas in May, according to Dow Jones Newswires.

Additionally, two Mexican companies, Industrial Perforadoa de Campeche and CCC Fabricantes y Construcciones, have submitted proposals for the three-year contract reportedly scheduled to commence in mid-August.

In an effort to reverse a steady decline in oil production and to expand natural gas output, Mexico has boosted its oil investments for 2009 by ramping up capital expenditures by 10% to some $20 billion, reports Dow Jones.