Mexican Senate approves oil reform

MEXICO CITY – Mexico’s Senate on Wednesday approved the most dramatic oil reform in decades, moving the country closer to opening its beleaguered, state-run sector to private companies and investment.

The Senate voted overwhelmingly in favor of allowing the government to grant contracts and licenses for exploration and extraction of oil and gas to multinational firms, something currently prohibited under Mexico’s constitution.

The reform gives private companies the ability to post expected benefits in their financial statements, as long as they specify in their contracts that all oil and gas they find in the ground belongs to Mexico, according to articles expanding on the reform.The reform gives private companies the ability to post expected benefits in their financial statements, as long as they specify in their contracts that all oil and gas they find in the ground belongs to Mexico.