Mexico’s oil reform an opportunity for UK firms: Clegg

The “bold” reform opening Mexico’s energy sector to foreign investment gives British companies the opportunity to offer their expertise in deep sea oil drilling, Britain’s deputy prime minister said Wednesday.

Deputy Prime Minister Nick Clegg spoke during a visit to Mexico City with a delegation of more than 40 British business leaders in sectors ranging from construction to engineering and energy.

“I think, in the energy sector, there are very few reforms anywhere else in the world which are as significant as the very bold reforms that President (Enrique) Pena Nieto has introduced,” Clegg told reporters after visiting Aztec ruins in the capital’s historic center.

The Congress passed historic legislation in December that opens Mexico’s oil and gas industry to foreign investment for the first time since it was nationalized 75 years ago.

The constitutional change was the centerpiece of Pena Nieto’s wide-ranging economic reform agenda, though lawmakers must now pass “secondary” laws this year to implement the energy legislation.

Mexico’s oil production has drastically fallen in the past decade, and analysts say state-run monopoly Pemex desperately needs outside help to drill for oil in deep waters, build new refineries and explore shale gas.

Clegg, who was due to meet Pena Nieto later Wednesday, said the legislation will allow for greater cooperation between Pemex and foreign firms.

“And we have in Britain a particularly impressive expertise in deep sea oil exploration and extraction because of our experiences in the North Sea,” he said.

“I hope that expertise is something that will help the further expansion and increased productivity of the energy sector here in Mexico,” he said.