Mexico President Enrique Pena Nieto today signed into law legislation that opens the nation’s oil and gas sector to private investment, thus ending a state energy monopoly that has lasted 76 years. Under the new law, private companies are able to enter production- and profit-sharing contracts. Via the Associated Press, Pena Nieto will announce this week which blocks of oil and gas fields are available to potential investors. State-owned oil company Pemex has the right under the new law to set aside some blocks for itself.
The Mexican government hopes the reform will yield resurgence in its ailing energy sector. Oil and gas production in Mexico has fallen by 26% over the past decade. Mexico hopes outside expertise and resources will help restore the country’s oil and gas production to 2004 levels by the middle of next decade.
