The Mexican government is proposing bidding-based rules for the opening of its state-owned oil and energy industry, saying contracts and production licenses will be put out for public bid and will go to the company that offers the best return.
Energy Secretary Pedro Joaquin Coldwell said Wednesday that private companies will not be allowed to immediately open gas stations to compete with state-owned Petroleos Mexicanos, which currently runs all stations under franchise or other agreements. He said private stations would be introduced gradually.
Joaquin Coldwell said that Mexican suppliers would be given preference in contracts over foreign firms in cases where both offer the same conditions.
He said that Mexico would seek a 25-percent “national content” goal in energy projects.
The rules must still be approved by Congress.
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