Petroleos Mexicanos, Mexican state-run oil corporation, is likely to start drilling in 2007 on its Progreso project in the coast of the Yucatan peninsula.
The company is now considering the results of a 2D seismic study and has submitted its preliminary environmental position to federal environment regulator Semarnat, because all drilling is subject to environmental approval.
Pemex also needs the financial resources to carry out the work. The area is extremely sensitive environmentally and Pemex first presented plans to regional and federal authorities in 1993.
Even if oil were found, the company said it would plug the wells and simply add the volumes to its proved reserves. Production would not start until 2014.
