The planned energy law reform in Mexico is facing delays due to political wrangling between the parties’ lawmakers.
The ruling Institutional Revolutionary Party (PRI) was looking to pass the so-called secondary laws for a reform – which, it hopes, will revive the limping industry – in June.
New legislation would open oil production and exploration rights to private companies, ending a state monopoly dating back to 1938.
As PRI is lacking a majority in the Mexican Congress to pass the reform, it was forced to co-operate with the center-right opposition National Action Party (PAN) as well as the main center-left opposition Party of the Democratic Revolution (PRD) to address the concerns of the general public, opposing the reform.
But both PRD and PAN lawmakers have staged walkouts from talks over the reform in the last few days to apply pressure on other ongoing political discussions in Congress.
Jorge Lavalle, a PAN member of the Senate energy committee, blamed the hold-up on delaying tactics by the PRD, which plans to hold a national referendum in 2015 to overturn the reform.
“If all goes well, we could be in a position to be approving the reform in the first ten days of July,” Lavalle said. However, if disputes continue, it could take longer, he added.
In the meantime, the government has to decide by mid-Septembers on which oilfields will remain with state-owned Pemex, and which will become available to private bidders.