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Leftist spat stalls Mexican energy bill



By Upstream staff 

A leadership spat in Mexico's left-wing opposition party could delay a government attempt to make politically difficult changes to oil sector laws, ruling party Senator Gustavo Madero said.

Conservative President Felipe Calderon had been awaiting the result of the left's 16 March leadership contest before presenting an energy bill, lawmakers say, but a row over the vote count means he is unlikely to submit the bill this week as many expected.

"It's not very likely. It's not impossible but it's unlikely," Madero, a member of the Senate energy committee, told Reuters.

The ruling party's lower house co-ordinator Hector Larios said the government's reform proposal should be ready in 10 to 15 days.

The Senate energy committee has been debating for weeks about how energy laws could be changed to help state energy monopoly Pemex shore up flagging oil output and reserves.

Calderon had hoped to pass energy legislation before the current congressional session ends on 30 April.

Mexico's main political parties agree Pemex needs more autonomy, but left-wingers oppose proposals to permit private partnerships to speed up Pemex's deep-water oil projects.

The left-wing Party of the Democratic Revolution, or PRD, is Mexico's second political force and the election of its new leader is seen as key to the success of an oil bill.

The March 16 vote pits a moderate leftist willing to debate the issue in Congress against a more radical rival seen backing protests against tweaking barriers to private investment.

The PRD has yet to announce the final vote tally and moderate Jesus Ortega has contested a claim of victory by Alejandro Encinas, an ally of firebrand Andres Manuel Lopez Obrador, who is leading protests against the idea of private oil partnerships, which he says amounts to privatisation.

Both sides have reported irregularities with voting.

"The issue of the PRD is clouding the atmosphere and the thing is to avoid having one thing contaminate another," said Madero.

Yesterday, Encinas told Mexican radio the final vote count would prove his victory, and Ortega said if that were so he would not call for a recount. Both have dismissed calls for the vote to be annulled.

Sen. Ruben Camarillo, a key lawmaker for the ruling National Action Party, or PAN, and a secretary of the Senate energy committee was quoted as saying yesterday that PAN senators were still mulling presenting their own energy bill.

He told the daily Reforma the bill could propose joint ventures that do not give private partners a share in profits.

Francisco Rojas, a veteran of Mexico's third opposition party, the Institutional Revolutionary Party, or PRI, and who is also a former Pemex chief, told Reforma he doubted an oil reform could be passed before the end of April.

Recent polls show half of Mexico opposes private investment in the oil sector, expropriated in 1938, but a survey in the daily Excelsior yesterday found 62% of Mexicans believe Calderon's assurances that he will not privatise Pemex.


25 March 2008 03:42 GMT  | last updated: 25 March 2008 03:42 GMT

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