LONDON (ShareCast) - Mexico's struggling oil industry has received its final needed seal of approval, as President Enrique Pena Nieto authorised required legislations to reopen the country's waning energy sector.

This follows consent by both the lower congress and the Senate completing the legislative process required to open the state-owned energy sector to foreign investment and expertise.

Mexico has been facing the challenge of implementing a reduction of its primary fiscal deficit with declining oil production and low chances of prices rising, but Barclays analysts say the energy reforms should also reduce the huge level of the liabilities of public utilities to the government.

One UK company that is expected to directly benefit is AIM's MX Oil which recently changed its name from Astar Minerals.

Chief executive Stefan Olivier said the timing of the reforms "could not come at a better time" as it announced last week the signing of a joint venture with a highly established Mexican partner, appointed two locally experienced directors, and raised £2m.

MX Oil was up 4.% at 3.6p by 09:31 on Tuesday.

WS

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