Mexico's Pemex To Boost Oil Exploration In Southern District

Mexico is increasing oil exploration in a group of states south of the Gulf of Mexico to book reserves and offset declining output at existing wells.

State-run oil company Petroleos Mexicanos is seeking companies to design oil wells and oversee exploratory drilling starting in November under a two-year contract, according to a tender notice published on Compranet, the state procurement Web site.
Mexican oil production fell 9% last year, and the company is increasing its exploration spending to correct years of low investment that has caused output to fall by a fifth since 2004.

“The southern region currently has a large amount of drilling activity, with the goal of discovering new reservoirs and developing existing ones,” said Pemex in the notice.

Wall Street Journal (through Google News)