Mexico moves towards opening up to foreign oil companies

Senators in Mexico are edging closer to a deal to open the county’s doors to foreign oil companies, according to reports. The bill would allow foreign firms to partner with […]

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Senators in Mexico are edging closer to a deal to open the county’s doors to foreign oil companies, according to reports.

The bill would allow foreign firms to partner with the state owned oil company Pemex. It’s hoped the change will boost oil production in the country, which is down 25% since it peaked in 2004.

The state has had a monopoly on oil production since 1935 when the sector was nationalised. Bringing back foreign companies will require an amendment to the country’s constitution and so the bill will therefore need a two-thirds majority in the legislature to pass.

The ruling centrist Institutional Revolutionary Party is negotiating with the conservative National Action Party to finalise the details of the deal. The left wing Party of the Democratic Revolution (PRD) has pulled out of the talks, with members describing the deal as “national treason,” according to Reuters.