The Mexican government has said that it will put forward legislation to reform the oil sector by the end of March.
A number of recent signals suggest that a bill is imminent, most notably an Energy Ministry report, which showed dramatic increases in output, exports and tax revenues if private – multinational – investment is permitted in exploration for deep water oil reserves in the Gulf of Mexico.
The fact that the government sent out these signals suggest that it is confident Congress would pass reforms. This comes in the wake of two potential setbacks: the election of Alejandro Encinas, who is close to defeated 2006 presidential candidate Andres Manuel Lopez Obrador, as leader of the opposition Party of the Democratic Revolution (PRD); and a recent scandal involving Interior Minster Juan Camilo Mourino, who is President Felipe Calderon’s chief negotiator and closest political ally.
The oil sector is a nationalist sacred cow in Mexico, and any Calderon initiative would stop well short of privatising state oil monopoly, Petroleos Mexicanos. Apparent government confidence suggests that Calderon is close to reaching agreement with Mexico's other main opposition party, the Institutional Revolutionary Party (PRI). This implies that the PRI will not seek to claim Mourino's head over contracts with Pemex, which he signed on behalf of his family's business when he held government posts earlier this decade – which will save Calderon from potential embarrassment and deadlock.
A number of recent signals suggest that a bill is imminent, most notably an Energy Ministry report, which showed dramatic increases in output, exports and tax revenues if private – multinational – investment is permitted in exploration for deep water oil reserves in the Gulf of Mexico.
The fact that the government sent out these signals suggest that it is confident Congress would pass reforms. This comes in the wake of two potential setbacks: the election of Alejandro Encinas, who is close to defeated 2006 presidential candidate Andres Manuel Lopez Obrador, as leader of the opposition Party of the Democratic Revolution (PRD); and a recent scandal involving Interior Minster Juan Camilo Mourino, who is President Felipe Calderon’s chief negotiator and closest political ally.
The oil sector is a nationalist sacred cow in Mexico, and any Calderon initiative would stop well short of privatising state oil monopoly, Petroleos Mexicanos. Apparent government confidence suggests that Calderon is close to reaching agreement with Mexico's other main opposition party, the Institutional Revolutionary Party (PRI). This implies that the PRI will not seek to claim Mourino's head over contracts with Pemex, which he signed on behalf of his family's business when he held government posts earlier this decade – which will save Calderon from potential embarrassment and deadlock.
Source: Oxan
No comments:
Post a Comment