Mexico’s PAN to Push Own Bill Opening Pemex Ahead of Pena Nieto

Mexico’s opposition National Action Party plans to present an energy bill seeking constitutional changes to open state-owned oil producer Petroleos Mexicanos to more competition and reverse eight years of falling output.

The plan to be presented July 31 will offer exploration concessions for private companies, said Gustavo Madero, the party’s president, who pledged to do “everything necessary” to win passage. The proposal would attract up to $30 billion in private investment, boost Mexican gross domestic product growth by as much as two percentage points annually and reserve majority control of projects for Mexican investors, other officials from the PAN, as the party is known, said today at a news conference.

The PAN’s announcement preempts a proposal by the ruling Institutional Revolutionary Party, or PRI, of President Enrique Pena Nieto, who said last month his plan would be presented in September to break the monopoly of Pemex in oil fields through an alliance between the nation’s three biggest parties. Congress must pass an electoral reform before the PAN will approve any energy initiative, lower house lawmaker Ricardo Anaya, said at the press conference.

“The model of the Mexican oil industry is exhausted,” Madero said at the news conference in Mexico City. “It’s an unworkable and unsustainable model that needs to be reformed at its base so that it can return to being productive.”

The bill would create 100,000 new jobs, Anaya told reporters today.

Luis Alberto Villarreal, the PAN’s coordinator in the lower house of Congress, said the party’s proposed overhaul would be the broadest energy proposal presented in decades.

Mexico City’s former mayor, Marcelo Ebrard, has said his opposition Democratic Revolution Party, the third member in the Pact for party should “strongly” oppose Pena Nieto’s oil plan.

To contact the reporters on this story: Eric Martin in Mexico City at emartin21@bloomberg.net; Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editor responsible for this story: Andre Soliani at asoliani@bloomberg.net

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