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Mexico candidates rule out foreign energy investment
Reuters
WASHINGTON
Petroleumworld.com 06 19 06Mexico's two leading presidential candidates have ruled out direct foreign investment in the country's state-run energy industry, The Washington Post reported on Sunday.
In interviews with the newspaper, ruling party candidate Felipe Calderon and his leftist rival, Andres Manuel Lopez Obrador, said they would not allow foreign companies to invest in the Mexican oil or electricity business.
Calderon had vowed to open the sector to foreign investment and alliances.
"In the energy sector I am not thinking of foreign investment," said Calderon, who served as energy minister under outgoing Mexican President Vicente Fox.
Calderon's energy advisor told Reuters this month that state oil monopoly Pemex needed foreign help to develop deepwater oil wells.
He said Calderon would push for direct foreign investment in natural gas production and refining, with strategic technology-sharing alliances in oil production.
Former Mexico City Mayor Lopez Obrador has said throughout his campaign that he would not open Pemex to foreign investment.
Many in Mexico cling to a clause in the constitution banning private or foreign companies from exploring or producing oil or gas in the country.
But to remain a major oil exporter, analysts say Mexico must overhaul Pemex and let it work more with foreign companies. Attempts at reform under Fox were quashed by opposition lawmakers.
After years spending more on pumping oil than exploration, Pemex, a major exporter of oil to the United States, is under pressure to explore deepwater sites for crude oil to boost its reserves.
Foreign oil majors with deepwater expertise are unwilling to share that know-how for anything less than a share in profits, which would mean Pemex forming joint ventures.
June 18, 2006
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