Mexico opens energy industry

|By:, SA News Editor

Mexican lawmakers have opened the country's energy industry to private investors, which has been locked under state monopoly since 1938.

The historic opening will have far-reaching benefits for the sector and Mexico's economy, allowing foreign and domestic energy companies to explore, produce and refine oil for the first time since Mexico nationalized its oil industry 76 years ago.

Under the new framework, domestic private oil and gas firms will operate under contract with Mexico, competing with state-owned Pemex.

Mitsui & Co. (OTCPK:MITSY) and Chevron (NYSE:CVX) have already expressed interest for investment. The country is believed to have the world's sixth-largest reserves of shale gas.