Mexico will force investors in its oil and gas industry to use a certain amount of labor and materials from Mexican firms but will give them a decade to comply with the rules, the government says..
MEXICO CITY, April 30 (Reuters) - Mexico will force investors in its oil and gas industry to use a certain amount of labor and materials from Mexican firms but will give them a decade to comply with the rules, the government said on Wednesday.
Presenting legislation to flesh out a radical 2013 reform at the core of President Enrique Pena Nieto's plan to boost economic growth, his government said the "local content" requirements would not kick in immediately.
Energy Minister Pedro Joaquin Coldwell said the quota, aimed at strengthening the domestic oil and gas industry, would need to reach an average of 25 percent by 2025.
The secondary laws unveiled on Wednesday set out rules for implementing the reform, and are being closely watched by oil majors such as BP Plc and Royal Dutch Shell.
The laws showed content requirements will vary on a case-by-case basis and will be detailed when contracts are put out to tender, all of which the government said would be public.
"They are emphasizing flexibility because they know that the mosaic of opportunities in the country require a different approach," said Jeremy Martin, an energy expert at the University of California San Diego. "It seems they definitely drew from some lessons in Brazil, where you have much higher (content) percentages that are much more rigid."
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