Mexico’s Pemex to Drill for Oil in Deep Waters of Gulf of Mexico

Mexico’s state owned Petroleos Mexicanos, also known as Pemex, intends to explore deep waters exploration in the Gulf of Mexico

In February 2012 Petroleos Mexicanos will begin drilling three exploratory wells on its maritime borders with the United States, in the Perdido Fold Belt in the deepwater Gulf of Mexico offshore sites.

Petroleos Mexicanos Pemex Exploracion y Produccion director Carlos Morales Gil said that any crude oil found on the Mexican side of the 12 square mile site “will be negotiated with under treaty terms on transboundary reservoirs with the U.S. to regulate the exploitation of the resources,” Mexico City’s el Universal newspaper reported.

Petroleos Mexicanos estimates that the Bicentennial and Pegasus West sites could contain up to a potential 3 billion barrels of oil, equivalent to 21 percent of Petroleos Mexicanos’ current proven oil reserves.

Morales Gil said that beyond the drilling of the exploratory wells, the work on the delimitation of the deposits will require an initial investment of $1 billion dollars and should the existence of reserves be confirmed, to exploit the site over the next five years will require up to $10 billion.

By. Charles Kennedy, Deputy Editor OilPrice.com