Weekly Report - 19 April 2005

MEXICO | Pemex cuts exploration outlays. The state oil company, Pemex, announced last week that its investment in exploration this year will be close to US$1.5bn. This represents a cut of 25% from last year's level. Carlos Morales, the firm's director of exploration and production, sought to minimise the impact of this, but did admit that it would take up to 2010 to fully recover depleted reserves if investment is maintained at US$1.5bn-$2bn a year. Top Pemex executives have been complaining that the state's take of 77% of its gross earnings [WR-05-14] has reduced it to dipping into its capital in order to make indispensable investments.

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