The likelihood that Mexico will open its oil and natural gas sector to more outside investment appeared slim to none Monday after some of the country’s lawmakers reportedly barricaded the podium in the lower house of Congress to protest the reform proposals.

Some of Mexico’s legislators piled heavy chairs around the speaker’s platform, and other lawmakers in the Senate began fasting to demand that Congress schedule a national debate on President Felipe Calderon’s energy bill, the Associated Press reported.

Santiago Creel, who coordinates Mexico’s ruling conservative party in the Senate, told reporters it was unlikely that Congress would approve any legislation to reform the national oil company, Petroleos Mexicanos (Pemex), before the current legislative session concludes April 30.

Mexico’s Constitution bans most private investment in Pemex. Various attempts to loosen the rules and allow foreigners to help boost exploration and production in the country have almost always been defeated, even though the oil sector has struggled to keep up with demand.

Calderon’s predecessor, Vicente Fox, obtained legislative approval for multiple service contracts (MSC), which allow private firms to subcontract to develop some natural gas projects (see Daily GPI, Oct. 15, 2002). However, the legislature challenged the MSCs on several occasions, which in turn discouraged foreign companies from bidding on projects. Pemex suspended the program in 2005 and asked lawmakers to enact legislation to regulate MSCs (see Daily GPI, Dec. 20, 2005).

Calderon last week introduced legislation to encourage investment in Pemex, but he said the legislation was not an attempt to privatize the company. However, Andres Manuel Lopez Obrador, who lost to Calderon in the 2006 presidential campaign, drew thousands of supporters to Mexico City’s central square on Sunday to rally against the reforms. Lopez Obrador said Calderon’s bill would privatize Pemex and allow the country’s oil and gas revenues to leave the country.

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