Pemex withdrawing request for oil field contract change (Reuters)

By Adriana Barrera (Reuters)

Mexico's cash-strapped state oil company Pemex requested authorities allow it to lower the tax regime on its top oil field Ku Maloob Zaap (KMZ), but the company said the request was now in the process of being withdrawn.

Pemex had asked the government to place KMZ under an exploration and extraction contract to lower its taxes, sources told Reuters. They also said the request was likely to be denied.

Ku Maloob Zaap, located in the shallow waters of the southern Gulf of Mexico, is the company's top-producing field accounting for 40 percent of Pemex's total crude output.

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