Pemex, Mexico's national oil company, says it plans to drill its first deepwater well this year. Pemex director Raul Munoz says Pemex expects to spend about 150 billion pesos this year for a number of projects, including its first deepwater exploration effort.

Pemex will collaborate with various oil consortia to drill the deepwater well, Munoz said, without giving details of where the well will be located or what companies Pemex will work with. Pemex has long been said to be working to form alliances with international oil companies.

Pemex's main oil field, Cantarell, produces around 2.2 MMb/d of heavy crude. The company produced a record 3.37 MMb/d in 2003 and expects to raise that by 80,000 b/d this year.

In June 2000, Mexico and the US agreed to divide a 17,000-sq-km area in the Gulf of Mexico known as the "donut hole" that could contain significant hydrocarbon reserves. Mexico received 62% of the area.

04/06/04