Mexican Oil Reforms Have a Slow Start

The legislation called for President Felipe Calderon to nominate four so-called professional directors to the Pemex board by the end of December but the government has so far not made any announcements.

"It is a bad signal that Calderon has not announced his proposals for the professional directors," wrote Mexico City oil analyst David Shields in a local newspaper on Tuesday.

"The professional directors are not going to resolve all the problems at Pemex but they are a symbol of the oil reform."

The professional directors are expected to help improve corporate governance and strategic planning at Pemex but the appointments have been delayed by negotiations between the ruling party and opposition lawmakers, according to Congressional aides and local media reports.

Late last year, Congress passed the energy reform package meant to help reverse the slide in oil production that threatens Mexico's status as the world's sixth-biggest oil producer.

The delay in appointing the new board members is viewed by foreign oil companies as a bad sign for future progress.

The reform legislation calls for a wholesale restructuring of Pemex as well as the creation of new governance committees, but this work cannot begin until the board members are selected.

Author: Ksenia Kochneva