Mexico’s government-controlled oil company needs a little help from its friends.
Jesus Reyes-Heroles, director general of Petroleos Mexicanos, or Pemex, says the company is the government’s most important source of income, as is typical for government-run oil companies throughout the world.
But Pemex’s production is slipping, particularly in its once-great Cantarell field offshore. America cares because Pemex is among the three largest suppliers to the U.S.
Reyes-Heroles told executives at the Offshore Technology Conference that Pemex aims to produce up to 3.1 million barrels a day through 2012, but will need to find another 1.8 million barrels to replace declines. Deepwater is beckoning, but Pemex lacks the expertise, training and equipment.
And Mexico’s constitution bars Pemex from partnering up with other companies because all oil income must funnel back to the government.
However, Mexican leader Felipe Calderon is asking Mexico’s Congress to relax the rules so Pemex can join hands with foreign companies to increase production.
“We’ll see how Congress reacts,” Reyes-Heroles said. “This is probably feasible reform.”