TN PETRÓLEO

Mexican state oil company Pemex`s E&P subsidiary (PEP) has launched a tender to ensure the reliability of its transport system offshore Tabasco and Campeche states over 10 years, according to federal procurement website Compranet.

The system - transport system #1 - includes the following: 108 operational pipelines with a total length of 1,467km; eight pipelines temporarily out of service with a total 25.7km length; 14 pipelines permanently out of service with a total 60.1km; the Cayo Arcas operating complex; the Dos Bocas maritime terminal; and a re-pumping complex.

Pemex has scheduled a site visit for March 25, and a project meeting for April 1.

Bidding rules are available through May 16 with bids due May 22.

Works are scheduled to begin August 4 and run 10 years.

Pemex has earmarked US$21.2mn for the works in 2008.

The tender number is 18575111-002-08.

OPPOSITION

Pemex previously awarded the US$394mn contract for PEP`s pipeline system in the states of Tabasco, Veracruz, Chiapas and Oaxaca to Houston-based EMS Group.

It was the first such contract awarded and has drawn fire from leftist opposition political party PRD.

The party claims the works violate the Mexican constitution by giving crude transport rights to a private firm and threatens national security by forfeiting control of the system that transports all crude used in Pemex`s six refineries.

PRD also says that awarding the contract to EMS is unnecessary given Pemex could handle the workload on its own, according to local press reports.

Pemex has defended the contract`s constitutionality by ensuring EMS will not be charged with the transport of crude. The contract will mean significant savings for the state firm, Pemex said.