Mexican Senate committees on Sunday debated an energy bill that would open up the world’s 10th-biggest oil producer to private investment by allowing new types of contracts, marking the industry’s most dramatic overhaul in 75 years.
The bill, announced by centrist ruling party and opposition conservative lawmakers on Saturday, would let private firms partner with ailing state oil firm Pemex PEMX.UL via profit-sharing, risk-sharing and service contracts as well as licenses in a bid to boost sagging production.
The reform, which would keep ownership of crude in state hands, is at the center of an economic reform drive that President Enrique Pena Nieto hopes will boost lagging growth in Latin America’s No. 2 economy.
It is much bolder than a draft proposed by Pena Nieto’s Institutional Revolutionary Party (PRI) in August, which would have offered profit-sharing contracts and was considered too tame for attracting private firms.
Senate committee lawmakers debated the bill on Sunday, but did not wrap up speeches in time for a vote. They will resume their session on Monday. Once they sign off on the bill, it heads separately to the full Senate and lower chamber for votes.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.