Today, August 12, 2013, the President of Mexico, Enrique Peña Nieto unveiled the federal government’s energy reform initiative during a ceremony in the official residence of Los Pinos.

This initiative proposes an amendment to articles 27 and 28 of the Constitution, in order to allow private participation in the oil sector, through the execution of agreements in the area of exploration and exploitation, without affecting the Mexican State’s direct ownership and direction over oil and hydrocarbons. It will also allow the open participation of private companies in power generation, with the Mexican State maintaining  the administration and direction over transmission and distribution activities, which will still be considered a public service.

The initiative will be sent to the Senate for analysis and discussion. If approved,  it will be sent to the Chamber of Deputies for its analysis and review.