Mexico will attract an additional $10 billion in annual foreign direct investment in its energy sector thanks to the overhaul passed by Congress in December, Energy Secretary Pedro Joaquin Coldwell said.
That anticipated FDI is for the energy sector as a whole, including hydrocarbons and the electricity system, Coldwell said Wednesday at the Energy Secretariat's headquarters.
The CIA World Factbook estimated that Mexico's FDI stock - including all economic sectors - amounted to just over $400 billion at the end of 2012.
Although Congress has given general approval for constitutional changes that ended state oil company Petroleos Mexicanos' 75-year-old monopoly on oil and gas production, Coldwell noted that "arduous work" remained to pass secondary implementing legislation.
He said that task should be completed during the next legislative session, which runs from Feb. 1 to April 30.
Pemex CEO Emilio Lozoya, for his part, said the overhaul offered a great opportunity for Mexico's oil industry to expand its presence in Asia and Central and South America, not only as a supplier but as an investor as well.
He denied that the overhaul would lead to mass layoffs, saying the challenge is to attract and retain the best talent to boost competitiveness.
The head of state-owned electric company CFE, Francisco Rojas, for his part, said the overhaul was expected to lead to investments of up to $50 billion over the next five years to build gas pipelines and more than two-dozen thermoelectric plants, noting that the goal is for the bulk of the funds to come from the private sector.
(c) 2014 EFE News Services (U.S.) Inc.
Original headline: Mexico: Overhaul will lead to additional $10 bn in annual energy sector FDI
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