Sweeping Reforms Expected To Revolutionize Sweeping Reforms Expected to Revolutionize Mexico's Energy Sector

Keywords: Mexican Congress, reform bill, production-sharing profits, profit-sharing contacts

The Mexican Congress has passed a sweeping energy constitutional reform bill that will open the country's energy sector to 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 key features of the bill are as follows:

• Allow licenses, production-sharing contracts and profit-sharing contracts to be granted by the government either directly to private parties or under association with the stateowned oil company, Petróleos Mexicanos (PEMEX);