Mexican President Felipe Calderon released his plans Wednesday to give greater autonomy to the country’s nationalized oil monopoly PEMEX, a move criticized as privatizing the industry that constitutes 40 percent of federal income. With domestic oil production falling for the past six years, Calderon has had to negotiate his pro-business politics amid steadfast public opinion against denationalization.
Mexican President Felipe Calderon has called on the country’s Congress to approve an energy reform bill to overhaul state oil giant Pemex.
Mr Calderon said the plan would give Pemex more freedom to manage its budget and contract out work, so boosting both oil production and exploration.
Mexico’s known oil reserves are running out and production has been falling.
Mr Calderon stressed the bill would not privatise Pemex, a national symbol that has been in state hands since 1938.