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Monday, 08 September, 2008, 17:50 GMT | more prices >>

Kessel optimistic on oil reform



By Upstream staff 

Mexico Energy Minister Georgina Kessel said a government proposal to overhaul Mexico's state-controlled energy sector could boost gross domestic product growth by close to 1% if approved.

Kessel said the conservative government's oil industry reform plan, which is being held up by leftists in Congress and protested against in the street, would create jobs and infrastructure in Mexico.

"Achieving the strengthening of the oil industry would generate benefits for the country ... and an increase in the rate of growth of our gross domestic product which could reach close to one percent," Kessel told a business conference, reported Reuters.

Left-wing lawmakers have blocked Congress for the past week in a show of opposition to President Felipe Calderon's oil reform plan, which would let state oil monopoly Pemex sweeten oil field service contracts with bonus fees.

Kessel did not give a time-frame for the boost to economic growth from new projects the oil reform could spur, such as the building of new refineries.

If the ruling conservatives can get the bill passed, it would go into effect next year.

Pemex says it needs the reform to attract partners to help it reach deepwater oil deposits, but leftists say using bonus fees to procure alliances in exploration violates barriers in the Constitution to private firms drilling for Mexican oil.


Friday, 18 April, 2008, 18:43 GMT  | last updated: Friday, 18 April, 2008, 18:43 GMT

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