Mexico's President, Felipe Calderon said that Petroleos Mexicanos (PEMEX) will seek to pump MXN5 billion ($370 million) on small and medium sized companies. These funds are aimed at reforming the oil industry, promising new more flexible agreements intended to draw attention of foreign companies and supporting renewable energy technology in the Mexico.

“Within the next few days, once analyzed and discussed by Pemex’s administrative council, this program will be presented and included in the Comprehensive Business Plan,” said Calderon, adding that the company was working hard to expand the potential of real home providers.

PEMEX had added MXN1.5 billion ($111 million) to its possible and proven reserves in 2008, up 41% from 2007, giving the firm a reserve replacement rate of 72%.

However it is a long way short of 100% or more that the multinational companies put back their reserves.

Calderon also said that PEMEX will spend MXN227 billion ($16.8 billion) in infrastructure in 2009, up 12% from 2008 and 34% from 2007.

PEMEX has seen a steep drop in production from Cantarell oil field. The field is now pumping less than 800,000 barrels a day, down 34%, compared with 2008 and less than half its 2.1 million barrels a day in mid-2004.