Mexico's Congress approves energy bill allowing foreign investment in oil


Mexico's Congress approves the landmark energy bill allowing foreign investment in oil, ending the government's 75-year monopoly on crude production.

Under the new law, Mexico will offer profit-sharing and production-sharing contracts and licenses to foreign firms, but will maintain ownership of the oil while allowing the firms to book reserves, a crucial concern for oil companies that depend on reserves for valuation and borrowing.

The measure still needs approval from 17 of Mexico’s 31 state governments before becoming law, and there's plenty of opposition.

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Comments (2)
  • stocknerd
    , contributor
    Comments (1503) | Send Message
     
    I live in Mexico and this is not a done deal. In the end it passes and goes into law. I do not think there will be a huge interest by outside oil companies. Mexico can wait 5 years before oil flows and probable will.
    12 Dec 2013, 08:31 PM Reply Like
  • tealone
    , contributor
    Comments (308) | Send Message
     
    Mexico is smart to save their oil and send it's population North. In another 50 years they will have the best of both US welfare programs and a remaining resource to sell to the US at inflated prices. Nothing is fair with oil and welfare.
    13 Dec 2013, 05:45 PM Reply Like
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