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Mexico may alter energy laws

After election, nation could push to allow foreign investment in oil

Fuente: reuters.com
(18/05/06)


Reuters News Service

LA JOLLA, CALIF. - Mexico may attempt to modify its constitution to widen the scope for private companies to work in the energy sector after the July 2 presidential election, the country's energy secretary told an industry gathering Tuesday.

The move comes as other Latin American nations, including Venezuela, Bolivia and Ecuador, are wresting control of the energy sector away from foreign companies to reap more profits amid record-breaking prices.

Fernando Canales said at an event hosted by the Institute of the Americas that a number of reforms are being studied.

Canales said the government was studying foreign companies "sharing the responsibility" with state-owned oil company Pemex and the government-run electricity company CFE.

Technical and financial constraints on Pemex have left vast amounts of Mexican territory underexplored for oil and gas resources, including the deeper waters of the Gulf of Mexico.


Constitutional bar
Mexico's Constitution bars private companies from participating in the energy sector, but experts say private technology and capital will be needed to reverse expected declines in production and increase gas and electricity output.

Felipe Calderon, the presidential candidate of outgoing President Vicente Fox's center-right National Action Party, has taken the lead in recent public opinion polls, raising expectations among foreign energy companies of gaining access to Mexico's oil and gas sector.

Canales said he hoped the proposed reforms, along with less controversial measures such as permitting private companies to build and operate oil pipelines and storage facilities, could be considered by a special session of the Mexican Congress this summer or in the ordinary session of Congress that begins in September.

 



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