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Mexico inches towards energy sector overhaul as Senate approves key legislation

18th July 2014

Mexico’s senate has finally given approval to a key piece of legislation that will allow the opening up of its oil and gas industry to foreign private investment

Mexico inches towards energy sector overhaul as Senate approves key legislation
The move opens up increased competition and a break from monopolies that have strangled the market for decades

Senator’s voted 90-28 in favour of the general outline of the new piece of energy sector legislation that defines the proposed rules for private investment agreements and fines within the Latin American nation’s oil and gas industry.

These new hydrocarbon laws are a central part of president Enrique Pena Nieto's economic reform agenda.

Though approval was given, senators have yet to make a final decision on many of the separate articles within the bill.

In December, Nieto announced the plans to end the state-owned monopolies of oil company Petroleos Mexicanos (Pemex) and electric company Comision Federal de Electricidad (CFE).

The move opens up increased competition and a break from monopolies that have strangled the market for decades.

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