Mexico puts its state monopoly on oil to an end

12.12.2013 By: Transfer LBC based on

After 75 years Mexico is about to end the state monopoly on oil production. Last Thursday, a proposal to that effect has been submitted with 353 against 134 votes in the lower house of the Mexican Congress.

This measure will enable foreign oil companies to also benefit from the Mexican oil wealth. The country contains one of the largest untapped oil reserves apart from the the Arctic.

Enrique Peña Nieto, the Mexican president, turned the partial liberalization of the oil market into one of the priorities of his administration.

According to him, allowing foreign oil companies to enter the country, production can be increased and higher investments can be retrieved, which should lead to more economic growth.

The state assemblies must also consider the removal of the state monopoly on oil from the Mexican Constitution. However, this is not expected to cause problems, since the national government coalition holds a majority in most of the regional parliaments.

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