Reuters: Market News: Mexico's Pemex signs deep water oil drilling safety contract

Reuters: Market News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Mexico's Pemex signs deep water oil drilling safety contract Mar 30th 2012, 03:40 MEXICO CITY, March 29 | Thu Mar 29, 2012 11:40pm EDT MEXICO CITY, March 29 (Reuters) - Mexico's state oil monopoly Pemex signed a contract with a company specializing in oil spill clean ups to boost its safety controls as it plunges into exploration of deep waters in the Gulf of Mexico. Pemex said in a statement on Thursday that Wild Well Control, which was heavily involved in efforts to cap BP's Deepwater Horizon disaster in 2010, will help Pemex comply with regulations put in place by the country's oil watchdog the National Hydrocarbons Commision (CNH). Pemex has limited experience in deep water drilling but estimates there are more than 29 billion barrels of crude equivalent, or 58 percent of the country's prospective resources, in the Gulf. The country needs to exploit that oil to boost government finances, which depend heavily on crude exports. Oil output in the world's No. 7 producer has fallen sharply from a 2004 peak of 3.4 million barrels per day (bpd) to stabilize at around 2.5 million bpd. A 2008 oil reform opened up the nationalized oil sector to more private investment, allowing Pemex to sign oil-field operating contracts in deep water with private companies. The CNH is concerned Mexico on its own is not ready to take on ultra-deep projects like the Maximino well, which is planned for next year at around 10,000 feet (3,000 meters), six times deeper than Pemex has drilled before.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions