Pena Nieto Submits Bill to End Mexico's 75-Year Energy Monopoly Eric Martin and Adam Williams - Bloomberg
go to original August 12, 2013

President Enrique Pena Nieto presented a bill to Congress today that would split state-owned crude producer Petroleos Mexicanos into two units and end a seven-decade state oil monopoly by allowing private investment.

Pena Nieto announced a proposal to allow companies such as Exxon Mobil Corp. and Chevron Corp. to pump crude from Latin America’s third-largest reserves for the first time since 1938. The bill would change articles 27 and 28 of Mexico’s constitution and offer profit-sharing contracts to private companies, rather than production sharing, Pena Nieto told reporters today in Mexico City.

The bill to loosen state-owned Petroleos Mexicanos’s grip on production and attract investment needed to reverse an eight-year output drop would be the economy’s biggest overhaul since the North American Free Trade Agreement in 1994 and add as much as 2 percentage points to annual growth, according to the Energy Ministry. An even more aggressive proposal delivered last month by an opposition party increases Pena Nieto’s chances of pushing his bill through Congress, according to Nomura Holdings Inc.

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