Energy reforms see Mexico relinquish total control of its oil reserves

New reforms mean state-owned firm Pemex will no longer have a monopoly on Mexico’s oil reserves.

After 76 years of state control, Mexico’s oil and gas sector was opened up to private investors when the government signed historic reforms into law last week.

Under the new law, state-run oil monopoly Petróleos Mexicanos (Pemex) will retain the rights to 83 percent of the nation’s proven oil reserves, but only 21 percent of any reserves that have not yet been discovered.

The latter figure is less than Pemex had asked for but it will please multinational companies like Exxon Mobil, BP, Shell and Lukoil – all of whom are expected to bid for contracts in the auction scheduled for June 2015.

Pemex will retain control of reserves equivalent to around 20.6 billion barrels. The rationale behind auctioning off 79 percent of Mexico’s unproven reserves is that exploiting these may require a degree of investment and exploration that is beyond Pemex’s capabilities…

Click here to read this article in full over at Latin Correspondent.