Mexican President signed a law that allows foreign companies to drill for Oil and Gas

Dec 21, 2013 15:41 IST

Enrique Pena NietoEnrique Pena Nieto, the Mexican President on 20 December 2013 signed a controversial law that allows foreign companies to drill for oil. The law was signed for the first time since nationalization of the sector in 1938.

The Mexican Congress passed the legislation on 13 December 2013 and was ratified by the majority of Mexican states. This legislation has changed three articles in the Constitution of the country. It allows foreign investment in oil, gas and electricity. To drill oil and gas, private companies have been allowed to sign contracts with state controlled Pemex. Pemex will get a share of the profits.

The law was signed to attract investment to Mexico that will attract the investment needed to boost the falling oil output of the country. The Mexican oil production has fallen from 3.4 million barrels per day in 2004 to the current rate of 2.5 million barrels per day.

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Read more Current Affairs on: Enrique Pena Nieto , Mexican President , Mexican oil production , Pemex

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