Calderon proposes sweeping reforms of Mexico's state oil company

Mexican President Felipe CalderonMexico City - President Felipe Calderon proposed sweeping reforms of the state oil company Petroleos Mexicanos (Pemex) Tuesday,

including the creation of "citizens' bonds" to raise fresh money for the company and provide dividends to private investors.

In a nationwide address, Calderon outlined six major measures to reform the company but insisted that Pemex "is not being privatized." He said it will continue to be a state firm and that the constitution would not be changed.

The reforms envision financial and administrative autonomy with greater facility to contract out major capital projects, including the construction of new refineries, he said.

Mexico currently imports four out of every 10 litres of gasoline consumed in the country.

Calderon also said the company would develop more transparent methods of accounting for public oversight, and offer innovative "citizens' bonds" worth 100 pesos (9.5 dollars).

He said the special investment bonds would not be the same as common stock, but would provide annual dividends for investors, who must be Mexican citizens.

Calderon said his plan also provides for stronger regulatory enforcement over the flagging state petroleum industry.

Pemex has failed to efficiently develop its oil reserves and find new sources, the president said. He warned that Mexico has "a little more than nine years' worth" of reserves, but said it was still possible to find new fields.

Calderon said his plan would strengthen the company for the future, because it "will always be" the only owner and administrator of the country's petroleum. (dpa)

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