Senate proposal: open Mexico oil to private firms

December 7, 2013 • World News

A protestor holds a signs that reads in Spanish; “No to the handover of oil and electricity to foreigners,” as he walks by a police barricade outside the Senate building in Mexico City, Friday, Dec. 6, 2013. For a second day, the Mexican Senate postponed debating the energy reform bill presented by President Enrique Pena Nieto. (AP Photo/Marco Ugarte)

MEXICO CITY (AP) — A Mexican senate committee on Saturday proposed the most dramatic oil reform in decades that would open the country’s beleaguered, state-run sector to private companies and investment.

The Senate proposal would allow the government to grant contracts and licenses for exploration and extraction of oil and gas to multinational giants such as Exxon or Chevron, something that is currently prohibited under Mexico’s constitution.

It also says that contracts could be made directly with the state, rather than issued by the state-run oil company, Petroleos Mexicanos, or Pemex, ending its monopoly on Mexican oil.

The proposal, Login to read more

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