Mexico reform plans draw line at profit-sharing

摘要

Private-sector oil companies would be able to share upstream profits with Mexican state-owned Pemex under a major energy reform, but the proposals rule out production sharing and a privatisation of Pemex. The reform bill unveiled by President Enrique Pena Nieto has been sent to the finance commission in the lower house of congress, signalling the start of the legislative debate. The proposals feature substantial tax cuts for Pemex and a corporate restructuring into upstream and downstream divisions, as well as more transparency and minimum national content for the oil industry. Pemex could be taxed at the normal corporate tax rate of 30pc, rather than 80pc of net oil sales, as now, the finance ministry says.