HOUSTON, 30th July 2014 - In December 2013, the Mexican Congress approved a historical constitutional amendment that ends the state's monopoly of oil, gas and power activities by opening up the entire energy sector to private investment from Mexican and foreign companies. According to Wood Mackenzie, this overhaul has the potential to revitalize the country's oil and gas sectors and effective secondary legislation, including competitive fiscal terms to attract investment, are essential to its success.
The approval process for Energy Reform in Mexico is at its final stage as the Mexican Congress has initiated the passing of secondary legislation. Political opposition to the reform has been negligible and no major modifications are expected as the reform passes through the Lower Chamber.
President Enrique Peña Nieto faces a challenge in implementing four major reforms, in additions to energy, simultaneously. The government is already committed to delivering lower power and gas prices by 2016 and any failure to meet this commitment will trigger a wave of negative sentiment towards the Reform
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