pemex

Under today's law, in which private firms can only act as service providers for Pemex, that investment would be much higher, he says.

Thanks to a meritocratic culture, and the discipline of having some of its stock traded, Petrobras is a leader in deep-sea oil.

Pemex will be able to pay extra in some circumstances, but is explicitly barred from linking these incentives to production.

Pemex has drilled just ten deepwater wells, but found little oil. It lacks the expertise, technology and capital it needs.

Pemex officials argue they are getting better at detecting the illegal taps, but concede it is a tough to stop the robbers.

Pemex is one of the world's leading oil companies with revenues of $104 billion in 2010.

After the conservative National Action Party (PAN) broke the PRI's seven-decade grip on power in 2000, Pemex started to invest more.

Mr Lozoya declined to comment on what terms Pemex would offer investors.

"They are spending more time robbing Pemex or stealing cars or kidnapping or extorting. "

"It's terribly difficult to get business with Pemex [Mexico's oil monopoly]. "

Oil output is plunging because of the inefficiencies of Pemex, the giant state oil monopoly.

From 1983 to 2000 Pemex's annual investment budget was a paltry $3 billion.