The oxidation of methane to organic oxygenates over metallic palladium dissolved in oleum was studied. Methanol was obtained by the transformation of methane into methyl bisulfate and dimethyl sulfate. Subsequently, methanol was formed as a result of ester hydrolysis. The reaction conditions were temperature 160 degreesC, pressure of methane 3.5 MPa, time 2 h, content of sulfur trioxide in fuming sulfuric acid 30%. Palladium can be recovered and used many times without reduction in the process yield. The byproducts formed in the process may be reclaimed and reused. (C) 2003 Elsevier Science (USA). All rights reserved.