MEXICO CITY, Feb 5 (Reuters) - Mexican state-owned oil

firm Pemex is set to have a wider berth to operate jointly with

private companies under a bill sent to Congress on Wednesday,

loosening restrictions implemented by the previous

administration.

According to the bill, which is expected to pass by a wide

margin, Pemex will then be able to enter exploration and

extraction agreements with private firms, after such contracts

had been canceled by former President Andres Manuel Lopez

Obrador.

Reuters reported in August, before Lopez Obrador's successor

Claudia Sheinbaum took office in October, that her government

would look to restart joint ventures for Pemex in a bid to boost

its reserves and navigate mounting debt.

The text sent to Congress on Wednesday lays out the

so-called "secondary laws," or the guidelines, to roll out an

energy reform passed last year.

Pemex may request the energy ministry convert some existing

service contracts, such as one it has with billionaire Carlos

Slim's Grupo Carso in the Lakach deepwater natural

gas field, to joint partnerships or exploration and extraction

contracts, according to the bill.

Reuters reported last week that Pemex and Carso were

discussing major changes to the project to make it profitable.

The project had been abandoned by the state company twice

previously due to high costs.

Under the reform, Pemex will not need regulatory approval or

a bidding process to convert existing contracts, though it will

face such hurdles for new exploration and extraction deals.

The state firm will maintain exclusive rights to the

exploration area, and does not have to pour its own funds into

the joint contracts, according to the bill.

SUPPORT FOR PEMEX

Pemex is one of the most heavily indebted state oil firms in

the world, and lacks the cash to invest in projects that would

allow it to meet crude production goals promised by Sheinbaum in

her term.

The proposal will allow the energy ministry to launch

auctions for exploration and extraction contracts, a

once-frequent practice suspended by Lopez Obrador.

Pemex will be able to bid for contracts with "alliances or

associations," according to the bill, and the energy ministry

can determine Pemex's stake in the project.

Pemex's ability to choose its own partners will also be new.

They had previously been assigned by oil regulator CNH, whose

duties are now being absorbed by the energy ministry.