We live in
challenging times in the global energy market; let us work to build
international consensus, he urged.
essential to promoting a global energy market that is stable, open and
efficient, inclusive and sustainable, he said.
to participate responsibly in energy development, particularly on the basis of
the structural changes we have achieved, he declared.
participated in the “Energy Reform in Mexico” event.
with the King of Saudi Arabia.
leaders witnessed the signing of Cooperation Agreements and Memoranda of
Understanding on various subjects.
today, President Enrique Peña Nieto participated in the "Energy Reform in
Mexico" event, in which he said: “In Mexico, we are convinced that energy should be a source of growth
rather than instability.”
”We live in
challenging times the global energy market, which countries must address with
shared responsibility and a clear vision. It is therefore important for energy producers and
consumers to promote the exchange of timely information, and work on building
international consensus,” he declared.
president declared that dialogue is essential to promoting a global energy
market that is stable, open and efficient, inclusive and sustainable. That is the way to achieve energy security and
environmental sustainability, which are essential to the balanced development
wishes to participate responsible in the world's energy development,
particularly as a result of the structural changes we have achieved, and promote a new development model in Mexico; a new
paradigm to provide Mexico with development and prosperity,” he declared.
Peña Nieto said Mexico and Saudi Arabia, “Share the decision to strengthen and
modernize our economies, particularly on the basis of science, green
technologies and human capital.”
He said that
as a result of the trade liberalization and integration process Mexico has undergone,
“My country is increasing its participation in global value chains.”
that only 35 years ago, in the 80s, “We were exporters of raw materials: almost 70 percent of exports involved oil and
mining, and 20 percent manufactured goods. Today, the situation has been reversed. In 2015, 89 percent of exports were manufactured
goods, while petroleum and mining accounted for only 8 percent. Nowadays,
manufactured goods also have a higher added value.”
explained that as a result of structural reforms, “We also have new
opportunities to attract investment from neighboring countries. Mexico offers, particularly today, opportunities in
key sectors for development in telecommunications, infrastructure and energy.”
of Mexico declared that through Energy Reform, “We have created a new model of
markets in the sector, characterized by openness, competition and global
hydrocarbons,” he told those attending the event, “Investors can participate in
exploration, extraction and manufacturing projects, as well as transport,
storage and marketing services.”
that in 2015, the first three tenders in this sector were held, in keeping with
the highest standards of legal certainty and transparency. “Thirty contracts were assigned to national and
international companies, giving rise to a new energy industry in Mexico,” he
He added that
the blocks and fields to be tendered in the next five years were also
is to create a large market of petroleum products and petrochemicals and to
create additional opportunities for investment in pipelines, storage terminals
and distribution systems,” he added.
president said that in electricity, “As from this month, private companies will
be able to generate and sell power on the new Mexican electricity market. There are unprecedented opportunities for investing
in cleaner, renewable sources such as solar, wind or geothermal energy.”
that in Mexico’s integration project, ”We are determined to make Mexico a bridge to connect energy markets in
North America, Latin America and Asia. By 2018, we will have seven gas interconnection bridges with the United
States, while efforts are being made to develop a pipeline to connect us with
“We now have
11 electrical interconnections with the United States and two in Central
America, and new cross-border interconnections are being evaluated. We are building leading-edge logistic-energy
infrastructure to link the Pacific with the Atlantic,” he explained.
Our countries aspire to further consolidate
and develop their relations: Minister of Petroleum and Mineral Resources
of Saudi Arabia
Petroleum and Mineral Resources of Saudi Arabia Ali Al-Naimi said that this
country has strong ties to Mexico, not only in terms of oil, but also in terms
of political, economic, cultural, and even social relations. “Our two countries aspire to continue consolidating
and expanding their relations,” he added.
He said that
both countries have strong, renewable industries in the domestic oil field as
well as ambitious plans for the future, within substantial and effective,
mutual and international cooperation.
Ali Al Naimi
said that Saudi Arabia and Mexico have, “A great deal of credibility and
respect in the international arena, and this cooperation has achieved tangible
Saudi Arabia have distinguished, qualified human resources in technical areas
and industries, and services that support oil production, which creates more
fields for technical cooperation and investment in oil, as well as in the
industries related to this fuel,” he said.
Saudi Arabia and MEXICO have broad
perspectives for COLLABORATing in INNOVATION, human capital training, and SCIENTIFIC
AND TECHNOLOGical research: PEDRO JOAQUÍN COLDWELL
Energy Pedro Joaquín Coldwell said that this meeting takes place in a context
of extreme volatility in the international oil market, where, as at other
times, “We are experiencing a cyclical drop in prices, coupled with a profound
structural change in the oil industry, meaning that, as oil-producing
countries, we face similar challenges.”
declared, there are investment opportunities in both oil extraction and
transport and storage, processing and refining, petrochemicals and the sale of
oil to the public.
that, “Saudi Arabia and Mexico have broad perspectives for collaborating in
innovation, human capital training, scientific and technological research.”
Minister outlined Mexico's energy capacity as well as future projects in that
expanding pipelines by nearly10,000 kilometers, which involves an investment of
14 billion dollars.
electricity, in 15 years, we have a goal of expanding the transmission network
by nearly 25,000 kilometers, and installing an additional 60 gigawatts for
our electricity system, we need an estimated investment of $116 billion USD, a
significant portion of which will come from private capital.
In the second
quarter of 2016, we will launch the first tender under the new scheme that
allows private investment in transmission lines.
By 2024, 35
percent of our power generation should come from clean energy sources.
has created strong incentives to invest in green energy generation, such as clean
energy certificates guaranteeing that a percentage of the electricity sold on
the market is renewable. We also provide 100 percent accelerated depreciation
for projects using these technologies.
To invest in
these options, the government is promoting a variety of financial investment
instruments, the most recent being Fiber E, which has proved highly successful
for investors around the world within the master limited partnership scheme.
concluded Pedro Joaquin Coldwell, has significant advantages: “Political stability, a strong economy, a skilled
population and proven industrial capacity in areas as diverse as the
automotive, aerospace, and energy sectors. We have strong regulatory bodies,
transparency and accountability rules and social monitoring to ensure a level
playing field for all investors.”
participation of capital from the Arabian Peninsula in Mexico, he added, “Would
contribute to promoting the integration of markets that until now have been
operating in isolation,”
BILATERAL COOPERATION INSTRUMENTS SIGNED IN THE PRESENCE OF THE
PRESIDENT OF MEXICO AND THE KING OF SAUDI ARABIA
framework of the state visit by President of Mexico Enrique Peña Nieto to the
Kingdom of Saudi Arabia, King Salman Bin Abdulaziz Al-Saud hosted an Official
Welcome Ceremony on the Esplanade of the Palace of the Royal Court. During the ceremony, the national anthems of both
countries were sung, President Enrique Peña Nieto reviewed the guard of honor
and subsequently presented the Official Delegations.
Peña Nieto and King Salman Bin Abdulaziz Al-Saud held a bilateral meeting in
which they discussed the potential of both countries as well as the historical
relations between the two countries. They highlighted the opportunities in tourism, energy and agribusiness
leaders witnessed the signing of the following documents and memoranda of
Services Agreement. It establishes
a legal framework to regulate air operations between the two states.
to avoid double taxation and prevent tax evasion. It eliminates tax burdens that hinder the flow of
investments derived from the taxation of a single revenue.
Agreement to combat organized crime. It promotes cooperation between the two states, to prevent and combat
transnational organized crime.
Cooperation Agreement. It promotes cooperation in the economic, commercial, technical
investment, cultural, sports and youth sectors.
of Understanding for cooperation in the energy sector. It promotes the exchange of information on oil
markets and indicates ways of achieving stability, mutual visits and technical
cooperation projects in the sector.
of Understanding on Education and Science between the Ministry of Public
Education and the Ministry of Higher Education for cooperation in the fields of
education and scientific research.
of Understanding on tourism cooperation. It provides for cooperation in the field of
tourism, and encourages private sector institutions to work together on the
basis of mutual benefit and equal rights.
of Understanding between the Saudi firm Aramco and Petróleos Mexicanos. It promotes relations in the energy sector.
of Understanding between the National Foreign Trade Bank of Mexico and the
Saudi Fund for Development.
of Understanding between the Saudi Chamber of Commerce and the Mexican Business
Council for Foreign Trade, Investment and Technology. It establishes a legal framework to promote and
expand trade relations.
Program between the Ministry of Economy and the Saudi Organization for
Standards, Metrology and Quality.