The Mexican government has laid out its new legislative measures for opening up the oil and gas sector to private investment for the first time in 76 years.
It involves 21 laws which have been drafted in conjunction with the conservative National Action party and implements some changes and new laws to the constitution agreed last year. Unlike other recent reforms, it is expected to pass through Congress easily.
Companies have been given a decade to meet the targets laid out in the measures.
It is one of the most exciting energy investment prospects – largely due the country’s deepwater, shale and onshore resources, as well as their proximity to the US where there has been a shale boom. The country is keen to capitalise on this and drive economic growth.
Some of the laws laid out in the reform give priority to national companies where the terms offered were the same as their foreign rivals. Also ensuring that Pemex, the state oil company, would have a 20% stake in any cross-border fields. The company is relied upon by the government to fund much of the national budget.
Mexico is the world’s 10th biggest crude producer and it is this that is at the core of President Enrique Pena Nieto’s plan to boost economic growth in the country.