Mexico’s monopoly over its $95 billion per year oil industry is poised to end after senators from the nation’s two biggest political parties agreed to allow output sharing contracts and licenses for outside producers.
Senators from Mexico’s two biggest political parties proposed a bill to break the nation’s 75-year oil monopoly by amending the constitution to allow production sharing contracts and licenses for outside producers.
Petroleos Mexicanos, Latin America’s largest oil producer, expects to hire foreign oil companies for the first time to explore and produce in the Gulf of Mexico as it seeks to arrest a five-year decline in output.
Petroleos Mexicanos’s plans to scale back drilling by 60 percent next year at its $11 billion Chicontepec oil field will hurt Mexican oil services providers as they lose contracts to companies such as Halliburton Co. and Schlumberger Ltd., analysts said.
Repsol YPF SA Chairman Antonio Brufau moved to oust representatives of two of the biggest investors from the board after they formed an alliance aimed at curbing his power and changing the oil company’s strategy.
Petroleos Mexicanos, Latin America’s biggest oil producer, is preparing a pair of offshore contracts allowing companies such as Exxon Mobil Corp. and BP Plc to gain access to the Mexican side of the Gulf of Mexico.
Spain’s Repsol SA and China Petroleum & Chemical Corp. were among companies that withdrew bids to develop blocks at Petroleos Mexicanos’s Chicontepec field, a sign of waning exploration interest before a possible reform of Mexico’s energy industry.
Morgan Stanley is preparing to invest millions of dollars in Mexican energy companies as the nation opens up the industry to private capital and state-owned oil producer Petroleos Mexicanos boosts spending to a record.