Mexico parties to seek oil licence contracts in bill

Mexico’s two largest parties reached a preliminary accord that would give companies more control in new oil field contracts than the government is proposing.

The ruling PRI and opposition PAN parties will support a new measure to allow the state to decide the type of contracts to be offered for each project, including service contracts, profit and production sharing and licenses.

Like the concession model proposed by PAN, licenses would grant broader operational control of projects than the government’s initial profit-sharing model and allow companies to manage oil directly.

Source: Bloomberg