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LatinNews Daily - 13 July 2018

In brief: Mexico

*Mexico’s state news agency Notimex has reported Juan Carlos Zepeda, the president of the national hydrocarbons commission (CNH), the sector regulator, as saying that President-elect Andrés Manuel López Obrador has a “great opportunity” to transform Pemex, the state-owned oil company, if he adopts the “Chinese model”. Speaking at an event organised by British research and consulting firm Oxford Business Group, Zepeda reportedly said that Pemex would remain state owned but with majority state-owned subsidiaries which could raise capital in financial markets. He cites the example of China National Petroleum “which has Petrochina, which is 87% state-owned”. This would “work very well for Mexico and Pemex”, according to Zepeda, because it would enable Pemex to “reverse the decline in production” which fell by 9.6% in 2017 compared with 2016.