Mexico’s Petroleos Mexicanos (Pemex) and Brazil’s Petroleo Brasilerio (Petrobras) are said to be close to forming a strategic alliance to share information and technology for deepwater Gulf of Mexico exploration, Mexico’s Reforma said Friday. Under the first phase of the alliance, Petrobras would give Pemex new technology for its fledgling deepwater Gulf of Mexico exploration while Pemex would provide information about its reserves and deposits.

Pemex CEO Luis Ramirez Corzo and Petrobras President Jose Sergio Gabrielli met in Mexico City last week, but there was no confirmation from Pemex officials whether an alliance is being considered. Pemex issued a press release indicating its collaboration with Petrobras has grown in several areas in the past two years. Petrobras, it noted, is among those exploring for natural gas in the Burgos Basin of northeastern Mexico under a multiple service contract (MSC) arrangement (see Daily GPI, Nov. 19, 2003). Pemex indicated the two companies were planning to define “subjects of mutual interest to be established through specific technology collaboration agreements.”

Under an alliance, the two companies apparently would work together on deepwater exploration and production projects. However, Mexico’s energy laws would have to allow private and foreign investment in upstream activities, according to the newspaper. Mexico’s constitution bars outside investments in Pemex unless they are under contract to the national oil company. Petrobras already is a deepwater producer in the U.S. Gulf.

Although Pemex offers investment opportunities through its MSCs, the nationalized company may need restrictions eased for other kinds of private investment. Petrobras was once a nationally owned oil company, but its restrictions have been eased, allowing it to expand its exploration programs. Mexico’s President Vicente Fox proposed a constitutional amendment in September to allow private companies to explore for and produce natural gas, but not crude oil. However, the proposal apparently has slim chances of passage.

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