situation report

Feb 21, 2019 | 20:25 GMT

1 min read

Mexico: Government to No Longer Allow Oil Joint Ventures Between Pemex, Private Companies

What Happened: Mexican President Andres Manuel Lopez Obrador has said his government will not permit any new joint ventures for oil production between state-owned energy company Petroleos Mexicanos (Pemex) and private companies, Reuters reported Feb. 21. Lopez Obrador added that new joint ventures would not be allowed until existing investments begin their production.

Why It Matters: The announcement is part of Lopez Obrador's strategy to limit private investment in Mexico's energy sector and strengthen state-owned Pemex instead.

Background: Lopez Obrador has been considering legislation to strengthen the authority of Pemex's director by defunding independent energy regulators and by appointing political allies to key energy watchdogs, such as Mexico's Energy Regulatory Commission.

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