6th Aug 2014 11:36
LONDON (Alliance News) - MX Oil PLC Wednesday said that the Mexican Senate has given final approval to legislation which reopens Mexico's vast energy industry to the private sector.
Senators are currently debating other supporting bills and once these are approved, President Enrique Pena Nieto will be able to give the final seal of approval on the energy overhaul, according to the company.
The AIM-listed oil and gas company said the reforms are focussed on reversing a decline in oil and gas production in Mexico over the past decade by ending state-owned Pemex's monopoly and, in the process, opening up the sector to foreign investment and expertise.
MX, formerly Astar Minerals PLC, recently signed heads of terms regarding a joint venture with Mexican oil and gas services firm Geo Estratos. A move which places MX Oil well to capitalise on the reform and opening up of the Mexican energy market.
The company secured its partnership with Estratos to jointly evaluate, secure and develop investment opportunities in Mexico, where 10.26 billion barrels of proven oil reserves exist.
MX Oil shares were up 3.6% to 3.60 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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