Mexico Is Near Easing Oil Laws in Bid to Attract Foreign Firms

MEXICO CITY — With oil prices falling and its own output fading, Mexico appears close to overhauling its nationalistic oil laws, allowing private oil companies to help find and produce more oil.

While the changes would be historic given Mexico’s longstanding antagonism to foreign participation in its oil sector, the new laws may not go far enough to attract interest from big oil companies or help the country pump more oil anytime soon.


Mexico’s Senate on Tuesday began discussions of the reform bill, which allows state oil monopoly Petroleos Mexicanos to work more closely with private companies and gives the state company more managerial autonomy. The bill has been passed by all three major political parties at the committee level, signaling broad support.

Mexico’s oil output for September was 2.72 million barrels a day, the lowest monthly level since 1995, Pemex said this week. For the year’s first nine months, Mexico’s output fell 10% from the year-earlier period and exports plunged 18%.

Wall St. Journal