Draft Mexican Energy Law For Higher Local Content Level
Mexican Lawmakers aim to set higher than first Planned Minimum requirements for Materials, How much local labor and companies investing in the Oil and Gas Industry must use, According to a Revised Draft of pending Legislation.
Mexico 's Congress is in the Process of Approving so-called secondary laws to Implement the Government's December 2013 Energy reform, which the Forms of President Enrique Pena Nieto Cornerstone's Economic Growth Strategy to boost flagging.
The laws, which Establish the Fine Print of the reform Ending the Oil and Gas Monopoly Granted to State Oil giant Pemex in 1938, are being Closely watched by Oil Majors Such as BP Plc and Exxon Mobil Corp..
Presented to Congress on April 30, the Original Draft of the secondary laws stipulated that "local content" of labor and Material Would need to reach an average of 25 percent by 2025.
Following cross-party negotiations, a revised version of the secondary laws seen by Reuters on Saturday showed lawmakers had proposed raising that requirement, which aims to strengthen the domestic oil and gas industry, to 35 percent of content by 2025.
Nevertheless, the Draft Investment in Oil Said that Exploration and Extraction in deep Waters, where Mexico has had little experience, was an Exception to this Part.
The ruling Institutional Revolutionary Party (PRI) aims to vote the laws by the end of June, though it could take longer.
(Reporting by Adriana Barrera; Editing by Eric Walsh).