Reform will boost oil investment by $10bn a year, says Pemex chief

energy -drilling_platform_in_seaFinancial Times, 8/15/2013

The head of Mexico’s state oil monopoly expects the energy reform announced this week to boost oil investment by $10bn a year, even though the foreign companies that it hopes to attract will not be able to book reserves.

While Enrique Peña Nieto, the president, is in charge of handling the delicate politics of the reform, Mr Lozoya is at the operational hard-end. It is a formidable task. Pemex, the world’s 10th-biggest oil producer, has over $127bn of revenues a year but also 160,000 employees, a powerful union, pays virtually all its profits to the government in taxes and has onerous pension obligations equivalent to 8 per cent of the Mexican gross domestic product.

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