16 December 2013
The Mexican Congress has now overwhelming passed a bill with broad constitutional reforms that will open Mexico’s energy sector to investment and competition. The bill calls for amending articles 25, 27 and 28 of the Mexican Constitution, and for adding 21 “transitional articles” detailing the regulations to be implemented. To become law, the bill now needs to be approved by a majority of Mexico’s state legislatures, which is expected soon.
The energy reform will bring about the most significant overhaul of the sector since 1938. The reform would likely result in an influx of private capital, technology and technical expertise needed to develop Mexico’s abundant energy resources, particularly its deepwater, ultra-deepwater and shale resources.
The key features of the bill are examined in this article.