Mexican Congress approves oil and gas bill

The Mexican Congress has approved new energy law which allows private oil and gas companies to drill for oil and gas with the state-run firm Pemex in exchange for a share of the profits

Private firms will be allowed for the first time since 1938, when the sector was nationalised, to explore and extract oil and gas with state-run firm Pemex - and take a share of the profits

On Thursday Dec 12,2013,the Chamber of Deputies voted 354 to 134 to give general approval to the bill.It has been approved by the Chamber of Deputies a day after being passed by the upper house, the Senate
The Senate’s approval came on Wednesday morning following a marathon debate on details of the bill. The discussions were held after the Senate voted 95-28 for the general outlines of the legislation.

The bill still needs to be approved by 17 of Mexico's 32 federal entities - the District Federal and 31 states.

President Enrique Pena Nieto says private investment is needed to modernise the energy sector. He said the new legislation "will also boost economic growth and the creation of new jobs" in the country.The bill is a key part of President Enrique Pena Nieto's drive to reform the Mexican economy.

Opposition lawmakers protested vigorously against the bill and said the new legislation would damage the national interests of Mexico.

Note
Oil production in Mexico has dropped from 3.4 million barrels per day in 2004 to the current rate of 2.5 million barrels per day

Mexico is the world's 10th-biggest producer of crude. Production has fallen by 25% since hitting a peak of 3.4m barrels per day in 2004.

Mexican president signs oil and gas law

 

Mexican President Enrique Pena Nieto has signed on  Saturday Dec 21,2013 a controversial law that allows foreign companies to drill for oil for the first time since the sector was nationalised in 1938. 

The legislation was passed by Congress on December 13,2013 and ratified by a majority of Mexican states.The legislation was then ratified by 24 out of 32 Mexican federal entities (31 states and the Federal District).

"This is the beginning of a new history for our country. We have opened the doors for a better future for all," said President Pena Nieto
President Pena Nieto says the reform will help Mexico attract the investment needed to boost its falling oil output.

The opposition says it damages national interests.

The legislation changes three articles in the Mexican constitution and allow foreign investment in oil, gas and electricity.

Private companies will be allowed to sign contracts to drill for oil and gas with state-controlled firm Pemex, which will get a share of the profits