Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
OPEC pumps out about one third of the world's oil/AFP

Top Story

Mexico says oil sector to be opened up immediately

Opening the oil and gas industry to private investment is a highly sensitive issue in Mexico, where many look back with pride at the expulsion of foreign companies in 1938/XINHUA-File

Opening the oil and gas industry to private investment is a highly sensitive issue in Mexico, where many look back with pride at the expulsion of foreign companies in 1938/XINHUA-File

MEXICO CITY, Dec 17 – Mexico’s controversial energy reform breaking a 75 year national oil monopoly will be enacted immediately now that a majority of states have approved it, the president said Monday.

A standing committee in Congress still has to OK the change, designed to lure foreign investment.

But this is expected in a matter of days “and once it happens I will promulgate the reform immediately,” President Enrique Pena Nieto said during a visit to Turkey, according to a statement from his office.

Congress passed the reform last Thursday, and after that it needed the green light from the legislatures of a majority of Mexico’s 31 states because it involved a constitutional amendment. Sixteen have done so since Friday.

Opening the oil and gas industry to private investment is a highly sensitive issue in Mexico, where many look back with pride at the expulsion of foreign companies in 1938.

The Mexican leftist opposition strongly opposes the change, saying it amounts to a privatization of the industry and a gift to US companies.

But backers of the reform say aging refineries, lack of deep-water drilling technology and dwindling oil production made the legislation an urgent necessity to save the state-run industry

No major obstacles were expected at the state level. The ruling PRI party and the conservative PAN party control most of Mexico’s state legislatures.

But even in some states where the change passed, there were demonstrations.

One of the most boisterous was in the western state of Jalisco, where some 300 people tried to prevent lawmakers from entering the chamber.

Advertisement. Scroll to continue reading.

Protesters set a fire at the entrance and sprayed paint on cars belonging to lawmakers. Riot police responded with tear gas.

Opposition parties want a referendum on the energy reform.

The change is the sixth major one enacted by Pena Nieto, who took power last year. Others have involved education, telecoms, the financial sector, taxes and the political system.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...