Mexico reserves on the slide

Speaking out: Pemex boss Jesus Reyes Heroles

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Anthea Pitt

 19 March 2007 08:30 GMT

Mexico's proved oil and gas reserves dipped to 15.5 billion barrels of oil equivalent at the end of 2006, down 5.8% from a year earlier, Jesus Reyes Heroles, head of state-oil company Pemex, said.



The figure, given in prepared remarks for a speech in the oil port of Coatzacoalcos, was further confirmation of Mexico's declining energy resources.

As big offshore oil fields like Cantarell begin to dry up, Pemex says it needs much greater investment to be able to explore for oil and gas reserves in deeper waters in the Gulf of Mexico.

But the state-owned monopoly is crippled by heavy tax payments, providing a third of the federal government's revenue.

"Resources left with Pemex after paying taxes are clearly insufficient to sustain investment programs required…

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