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
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
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...
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