Pride CEO says Mexico energy debate paralyzes Pemex

NEW ORLEANS, April 9 (Reuters) - The chief executive of U.S. offshore drilling contractor Pride International Inc (PDE.N) said on Wednesday uncertainty over investment rules for Mexico's energy industry has paralyzed state oil company Pemex and is making it challenging to do business there.

Mexican President Felipe Calderon hoped to pass an energy law by the end of April that would allow Pemex to pair up with experienced foreign oil companies to explore deep seas. But he has run into opposition from leftist and centrist politicians who oppose lower barriers to private capital.

"Right now, Pemex is really kind of like a deer in the headlights," Louis Raspino, Pride's CEO told the Howard Weil Energy Conference. "They really can't commit."

So far this year, Pemex has only tendered for 2 drilling rigs and is currently asking contractors to extend agreements for a short period of time, the executive said.

"We don't see much happening right now," Raspino said.

Pride, which has 14 rigs working for Pemex, said it may take two rigs out of service if the state oil company does not put them under contract.

Still, Raspino said the long-term outlook for the Mexican market is good for drillers as the country struggles to boost declining output.

"We believe the Mexican market is going to be a strong market for a number of years," Raspino said, adding he could not forecast how long the short-term disruptions will last.

Shares of Pride were 1.3 percent higher to $37.53 in late morning trading on the New York Stock Exchange. (Reporting by Anna Driver; Editing by Tim Dobbyn)