By Ivan Castano
Investor Report Mexico: Hard bargain
Far-reaching reforms to Mexico’s energy sector are crucial to securing much-needed investment. All eyes are now on the incoming government
That Mexico’s energy sector, Latin
America’s second-largest, is in dire need of
investment is nothing new. But long-delayed reforms to overhaul
an inefficient oil sector and improve conditions to boost
renewable energy investment have now become critical.
As an increasingly embattled state oil producer fails to
boost Mexico’s declining oil output, calls for a
'Pemex reform’ have reached new heights,
especially in an election year which will see PRI candidate
Enrique Peña Nieto officially assume the presidency on
December 1. His proposed reform plan calls for private
companies to own stakes in oilfields, mainly through joint
ventures with Pemex – a process that would essentially
open Mexican oil production and exploration to foreign
The scheme, however, will require a big change to
Mexico’s constitution, which bans foreign
companies from engaging in production and exploration
activities. The process is expected to be one...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.