Posted on 12/12/2013 5:38:55 AM PST by thackney
The Mexican Senate approved legislation early Wednesday to overhaul the country's energy industry, a historic move that will open the sector to private investment.
Lawmakers must still debate some points in the bill that are being challenged by leftist legislators.
The bill, which was backed by the President Enrique Peña Nieto's Institutional Revolutionary Party, or PRI, and the conservative National Action Party, or PAN, was approved on a vote of 95-28, Senate spokesmen said.
The bill modifies Articles 25, 27 and 28 of the Mexican Constitution in response to the "historic responsibility of turning the energy sector into the lever for national development," a statement by the PRI said.
(Excerpt) Read more at latino.foxnews.com ...
Mexico’s lower house quickly takes up energy bill
http://fuelfix.com/blog/2013/12/12/mexicos-lower-house-quickly-takes-up-energy-bill/
December 12, 2013
Mexico’s lower house of Congress began a raucous, marathon debate expected to last through the night and well into Thursday on historic legislation that would open the state-run oil industry to private investment.
Just hours after the measure passed the Senate on a 95-28 vote, members of the House of Deputies took up the bill after overriding attempts by leftist opponents to block discussions.
...
Two of the country’s three main parties are backing the bill, which would allow the government to grant contracts and licenses for exploration and drilling to multinational firms, something currently prohibited by Mexico’s constitution.
If the bill passes the lower house, it would then need to be approved by the legislatures of 17 of Mexico’s 31 states.
Dozens of legislators signed up to speak when debate began Wednesday night on the floor of a makeshift chamber after a group of leftist lawmakers seized control of the House of Deputies, using chairs and tables to block access to the chamber in a failed attempt to block discussion of the measure.
...
The bill is the crowning piece of President Enrique Pena Nieto’s first year of reforms, which have also targeted education, the tax system and telecommunications. But the energy overhaul is considered most crucial to the overall economy and the remaining five years of Pena Nieto’s presidency.
Under the legislation, contracts could be made directly with the government rather than with Pemex, ending its monopoly on Mexican oil.
The bill would allow contracts for profit- and production-sharing as well as licenses under which companies would pay royalties and taxes to the Mexican government for the right to explore and drill.
Private companies would have to specify in contracts that all oil and gas found belongs to Mexico. The constitution would continue to prohibit oil concessions, considered the most liberal kind of access for private oil companies.
Guess Carlos is going to slim down.
29 Billion Reasons to Love Mexico’s Energy Reforms
http://www.fool.com/investing/general/2013/12/11/29-billion-reasons-to-love-mexicos-energy-reform.aspx
ExxonMobil is one of several oil majors that has expressed interest in investing in Mexico. Pemex needs ExxonMobil’s expertise in developing the Gulf of Mexico because that’s where Mexico sees roughly half of its potential recoverable reserves.
29 billion reasons to explore
Pemex sees 29 billion barrels of potentially recoverable oil equivalent in its part of the Gulf of Mexico. 29 billion barrels would be over double the size of Pemex’s current proven reserves, which would substantially increase Mexico’s oil production if it can be tapped into.
ExxonMobil is heavily invested in the Gulf of Mexico and has plenty of experience in deep water drilling. ExxonMobil discovered the Julia oilfield back in 2007 and has spent $4 billion to bring production online by 2016.
ExxonMobil sees six billion barrels of recoverable oil equivalent that can be extracted if you know how to drill the ocean floor through 7,000 feet of water. While Pemex lacks the resources to successfully develop the Gulf of Mexico’s oilfields, ExxonMobil doesn’t. ExxonMobil can leverage its knowledge of deep water drilling with Pemex to fully exploit 29 billon barrels of valuable hydrocarbons.
The buck doesn’t stop with ExxonMobil. Pemex has reached out to Chevron as well. Chevron is another key player investing billions in the Gulf of Mexico.
The man I used to work for had been doing work for Pemex before I started.
Pemex got him and his partner to spend several million on equipment to do the work.
After a few months when he had everyone trained how to use the equipment the Mex govt seized all the equipment and it belonged to Pemex.
You’re always a great source on energy news ! Thanks !
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