Mexico Senate committees approve energy reform

Mexico’s seven-decade state energy monopoly is one step closer to allowing private oil investment after Senate committees voted in principle to approve a bill that allows output sharing and licenses for outside companies.

Lawmakers from three Senate committees approved a bill yesterday that would allow private companies to develop fields in the largest unexplored crude area after the Arctic Circle as state-owned Petroleos Mexicanos seeks to reverse eight years of falling output.

The legislation would allow companies to log crude reserves for accounting purposes, which may make it easier to secure project financing.

Source: Bloomberg