Feb. 14 (Bloomberg) -- Mexico's government plans to present an initiative to open the state oil industry to foreign and private investment by the end of March, Energy Minister Georgina Kessel said.

``That's when we will be able to show a bit more what we've been working on,'' Kessel said. A bill would be submitted to congress later this year, she said during an interview broadcast on Grupo Televisa SAB today.

Mexico's President Felipe Calderon wants to secure support for the initiative before making the details public, she said. The proposal would allow state oil monopoly Petroleos Mexicanos to form partnerships to drill for crude in deep waters, which would help halt a decline in output and reserves, Kessel said.

Mexico will run out of oil in about nine years unless new fields are explored and proved reserves are found, she said.

``We're looking to give Petroleos Mexicanos the flexibility to form alliances to drill in difficult areas,'' said Kessel, who also serves as the company's chairwoman.

Her comments come a day after the speaker of the lower house of Congress, Ruth Zavaleta, said she didn't see the energy initiative ``moving forward'' for lack of support.

Zavaleta is a member of the opposition Party of the Democratic Revolution, which opposes Calderon's plan to open the industry to outside investment.

Kessel said neither Petroleos Mexicanos nor part of its assests will be sold under Calderon's plan. She said the plan ``won't necessarily'' seek to amend the Mexican constitution, which reserves oil extraction to the state, barring Pemex from production-sharing agreements with foreign or private companies.

To contact the reporter on this story: Adriana Arai in Mexico City at aarai1@bloomberg.net;

Last Updated: February 14, 2008 10:26 EST