Mexican billionaire Slim says that Pemex's Lakach project, which has been indefinitely stalled, is irrational

Carlos Slim, a Mexican billionaire, said that the deepwater 'natural gas' project that his company?GrupoCarso has agreed to develop? with the state-run oil firm Pemex was "irrational," which raises questions about the future project.

Pemex twice abandoned the Lakach project in the Gulf of Mexico before signing an agreement in 2024 with GrupoCarso. Slim has said that the project is 'complicated' and an official from Carso said in October that the company was evaluating the feasibility of the?project. In his comments at the annual press conference of his foundation in Mexico City on Tuesday, Slim expressed ongoing concerns. "We were looking at everything." It turns out that it's irrational," Slim said, noting that the same gas could be accessed inland.

Slim stated that it was "irrational" to act and operate in one location when there is a land-based place. He said that Grupo Carso would not leave the project. Mexico wants to reduce its dependence on the United States by increasing natural gas production. It is also looking at options for fracking, despite previous opposition to the controversial technique.

Slim, who has businesses in telecommunications and mining, as well as retail, has recently 'bolstered' his presence in the energy industry by acquiring stakes in shallow water fields Zama and Ichalkil, and Pokoch.

He said that he would not be seeking any more projects with Pemex at this time.

He said, "We are saturated."

Lakach is located about 90 kilometers (56miles) from the Gulf Port?of Veracruz and holds approximately?900 billion cubic feet?of gas. The existing well is under low pressure, which makes production difficult. (Reporting and writing by Cassandra Garrison, Adriana Barrera and Brendan O'Boyle. Editing and reviewing by Kylie Madry, Stephen Coates and Kylie Madry)

(source: Reuters)