Mexico needs $ 10 bn per year for oil exploration

Jun 25, 2004 02:00 AM

Mexico needs to invest $ 10 bn a year in oil exploration to meet its 100 %-reserve replacement target by 2006, President Vicente Fox said at the closing ceremony of the national mining chamber's annual meeting.
Currently, the government is investing $ 5 bn a year in exploration projects, which has allowed the reserve recovery rate to increase from 20 % to 40 % over the four years that coincide with the Fox administration. This is despite the reclassification by the US securities and exchange commission (SEC) in 2000 that changed the calculation formulas for what constitutes proved reserves "making it much more difficult to demonstrate proved reserves," Fox said.

"There is no doubt that we have deep water Gulf of Mexico reserves, however, the technology needed for exploration is truly sophisticated and Mexico does not have the technology or the resources to access them," he said, adding that both the US and Cuba use private investment to finance drilling in the Gulf of Mexico.
"So what wehave to do is really make the effort," he said.

Mexico is investing a record high $ 20 bn a year in the energy sector.

Source: Neftegaz.RU
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