Yet the improvement in Pemex made no impact, however, on the price of its shares, because it doesn’t have any. Pemex is much more like a government department than a business, state-owned or otherwise.

But Enrique Peña Nieto, who is due to be inaugurated as Mexico’s president on December 1, has indicated that he wants Pemex to adopt something like the Petrobras model, where the state company competes in its home and foreign markets with others from the rest of the world.

Pemex enjoys a state monopoly in Mexico, which absorbs all of its capital spending. So no overseas ventures for the Mexican company and no competitors on the home front.

How exactly Peña Nieto plans to change Pemex is far from clear. In broad terms, though, he has spoken not of a straightforward privatization but rather of a Mexican market in which Pemex competes with the private sector as well as state companies from other countries.

That may sound straightforward. But, though many Mexicans support Peña Nieto’s view, others believe that all oil and gas must remain state property, as the Constitution currently demands.

via Pemex/Petrobras: a tale of two state oil companies | beyondbrics.