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Mexico's state-owned oil company to search for shale gas, drilling techniques in U.S. territory

Mexico's state-owned oil company, Pemex, will search for oil in U.S. territory
By The Associated Press Modified: August 19, 2013 at 8:50 pm •  Published: August 20, 2013
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Mexico's state-owned oil company says it will form an entity to produce shale gas and deep-water oil in U.S. territory.

The plan will help Petroleos Mexicanos, known as Pemex, acquire drilling techniques it now lacks for complicated terrain in Mexico, chief executive Emilio Lozoya said in an interview with The Wall Street Journal.

Pemex confirmed the plan Monday.

“The geology is similar and we can benefit from numerous areas of collaboration with international oil companies,” Lozoya said.

Pemex has so far been unable to exploit its shale and deep-water reserves, and the Mexican Constitution limits its ability to hire outside expertise in Mexico. The government has proposed allowing Pemex to enter profit-sharing contracts with private companies and let outside companies refine and transport oil inside the country.

That would require controversial changes to the constitution, which states that Mexico's oil belongs to the state.

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