UPDATE 1-Pride CEO says Mexican energy debate freezes Pemex

(Adds detail on Mexican energy plan, updates share movement)

NEW ORLEANS, April 9 (Reuters) - The chief executive of U.S. offshore drilling contractor Pride International Inc (PDE.N: Quote, Profile, Research) 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.

"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."

Mexico's government sent Congress on Tuesday a compromise energy plan aimed at attracting foreign companies to hunt for new oil reserves to rescue falling output by the world's No. 5 crude producer.

It is Mexican President Felipe Calderon's most ambitious economic reform attempt yet but Mexico is wary of private involvement in the oil sector, in state hands since 1938.

The plan omits controversial risk-sharing alliances but would let Pemex sweeten service contracts with private companies by adding performance-based incentives.

Raspino said that 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.

"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.