Mexico: Expectations and Challenges for the Oil Industry

September 03 2015

G4S Risk Consulting's in-depth analysis and forecast for Mexico's oil industry

Summary

Mexico's long-awaited and controversial energy reforms have been one of the country’s most significant constitutional overhauls and are aimed at boosting production and economic growth. The government has high expectations that the opening of the upstream sector to foreign and private investment for the first time in more than 75 years will significantly increase revenues, make state-owned company Petroleos Mexicanos (Pemex) competitive and lead to lower electricity prices. The first contract bidding round took place in July, providing a number of lessons for both the government and potential investors ahead of the next rounds in September and December.

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