Services companies stand to profit if Pemex makes changes

Posted on October 27, 2013 at 5:00 am by Emily Pickrell

Enrique Pena Nieto, Mexico's president, speaks in Mexico City in August 2013. (Susana Gonzalez/Bloomberg)

HOUSTON — Proposals to open Mexico’s energy industry to outside investment could make a good thing even better for oil field services companies operating there.

Analysts predict that services companies already in Mexico — including Houston heavyweights Halliburton, Schlumberger, Baker Hughes and Weatherford — will profit from increased drilling activity if Mexican lawmakers agree to a constitutional amendment that would allow international interests to share in the risks and rewards of the nation’s oil business.

“Energy reform is not only going to allow private companies to participate in exploration and production, but also distribution and retailing — the whole value chain is going to be open to private investment,” said Dwight Dyer, an analyst with Control Risks, a global risk consultancy. “This should provide opportunity for companies like Halliburton or Schlumberger to expand their presence greatly.”

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