Mexico has unveiled its energy reform draft, which plans to open the energy sector to foreign investors for the first time in 75 years. The Mexican president proposed to loosen the grip on Pemex, the national oil and gas company, a state-owned company which has been controlling the country's energy industry since the nationalisation wave of 1938. The energy reform draft aims to restructure Pemex into two divisions, one dealing with exploration and production, and the other with industrial reform, to make the group more profitable and internationally competitive. Pemex would not be privatised nor sold.
The energy reform is also aimed at attracting private investors and plans to offer profit-sharing contracts rather than production-sharing contracts; this would require changing article article 27 of the constitution, which bans private sector contracts, and article 28, which limits Mexican energy to state-own organisations.
The energy reform will now be reviewed by the Parliament. The reform is expected to boost oil production from the current 2.6 mb/d to 3 mb/d in 2018 and to 3.5 mb/d by 2025, while gas production should increase from the current 5.8 Bcf/d (about 60 bcm/year) to 8 Bcf/d (82 bcm/year) in 2018 and to 10.4 Bcf/d (107 bcm) by 2025.
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