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MEXICO CITY (AP) — A Mexico senate committee on Saturday proposed the most dramatic oil reform in decades that would open the country's beleaguered, state-run sector to private companies and investment.
By Dave Graham, Adriana Barrera and Simon Gardner MEXICO CITY (Reuters) - Mexican lawmakers unveiled a draft energy bill on Saturday that includes contracts ranging from profit-sharing and risk-sharing to licenses to lure private investment, in what would be the biggest opening in the world's No. 10 producer in decades. Approval of the bill would mark the end of the decades-long oil and gas monopoly held by state-run Pemex, which is struggling to reverse a sharp slide in oil output due to years of chronic under-investment. The bill, which would keep ownership of crude in state hands, is at the center of an economic reform drive that President Enrique Pena Nieto hopes will boost long-lagging growth in Latin America's second-largest economy. But it is a big step from the service contracts currently on offer, under which companies are paid a fee and are able to recover costs, and also goes well beyond the proposal made by Pena Nieto in August, which was limited to profit-sharing contracts.