Pena Nieto Is Committed to Mexico's Energy Reform Karen Boman - Rigzone
go to original February 23, 2016

Mexico: Government Strategy Opens Door to Further Privatization (teleSUR English)

Mexican President Enrique Pena Nieto said he is committed to fully implementing energy reform in Mexico, and intends to maintain the rhythm achieved in exploration and production contract bidding.

For many years, it was evident that Mexico needed to make substantial changes to break down barriers holding back Mexico’s energy sector potential, Pena Nieto told attendees at the IHS CERAWeek Monday in Houston. However, implementing the necessary structural reforms was impossible because of the two-thirds majority of Congress needed to change Mexico’s Constitution. Pena Nieto’s establishment of a dialogue between Mexico’s political parties that allowed the Pacto por Mexico to happen provided the two-thirds majority needed to change Mexico’s Constitution. These amendments addressed a number of areas, including financial, telecommunications and tax.

Energy reform represents the most important economic change in Mexico over the past 50 years. In fact, it represents a paradigm shift, in the way in which Mexico obtains, transforms and takes advantage of the energy sources, Pena Nieto said.

“With this reform, the Mexican State maintains the ownership of the underground hydrocarbons and, at the same time, it allows the private participation in the entire hydrocarbon value chain and practically in all the electricity industry,” Pena Nieto commented.

Read the rest at Rigzone

Related: Mexico Economy Seen Up 2.3pc in 2016 After Budget Cuts (Business Recorder)

Related: Mexico's Pemex Says Crude Exports Jumped in January (Reuters)

Related: Mexico’s Historic Energy Reform? It Hasn’t Exactly Worked Out… (El Daily Post)

Related: Why Are We Surprised by Oil at $30 a Barrel? (The Huffington Post)

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