Mexican President Felipe Calderon submitted to Congress Wednesday proposed changes in tax
rules for state oil monopoly Petroleos Mexicanos, or Pemex, to promote development of difficult to‐
reach reserves in deep water and the Chicontepec basin.
28/05/2008 :: INTSOK, Javier Estrada
The proposal would reduce the tax burden on projects in those two regions, where exploration and production costs are higher than in Pemex's traditional areas of production.
The proposed tax changes complement an energy reform bill that Calderon submitted to Congress in April aimed at helping Pemex reverse declining reserves and production. Among other things, the reform bill would allow Pemex to include performance incentives in service contracts, and open some restricted downstream activities ‐ such as refining and transport ‐ to private involvement.
The reform is currently the subject of a broad series of public debates being organized by the Congress, although a number of the proposals face stiff political opposition. The onshore Chicontepec fields, and potential offshore reserves in deep waters of the Gulf of Mexico, are seen as key to Pemex's medium‐ and long‐term goals for reserve replacement and production, particularly considering the sharp decline at the giant Cantarell oilfield.