On 12 December 2013 the Mexican Congress approved someamendments to the Federal Constitution, which are anticipated to bring dramatic change to Mexico’s energy industry.
The constitutional amendment provides for transformation of both Petróleos Mexicanos (Pemex) and the Federal Commission of Electricity (Comisión Federal de Electricidad) into State Productive Companies (SPCs), vested with more budgetary autonomy, and, to the extent possible, resembling actual commercial companies
It also reforms the oil and gas sector, with both upstream and downstream sectors becoming open to private investment. The Mexican Constitution will now permit the Government (through the Energy Department and the technical support of the National Hydrocarbons Commission) to contract directly with private entities for the exploration and production of hydrocarbons, as well as midstream and downstream projects. The Energy Department is also now able to enter into a broad range of agreements and structures with private parties for the exploitation of Mexico’s oil and gas.