Oil sit-in pushes out Mexico MPs

The protesters want a four-month debate of the proposals

A sit-in protest by leftist politicians over energy reform plans has forced Mexico's Congress to relocate for the first time in almost 20 years.

Lawmakers had to cram into conference rooms to press ahead with routine business on Tuesday.

Leftist MPs seized the podiums of both houses last week in protest at plans to ease limits on private involvement in the state oil giant, Pemex.

The government says Pemex needs outside investment to boost falling production.

Congress has only been forced out of its chamber a handful of times in Mexican history - the last time was in 1989 when the lower house had to evacuate because of a fire.

Strong reactions

Lawmakers from the Democratic Revolution Party (PRD) and two other smaller leftist parties have been camped out since last Thursday.

The reform bill would give Pemex more freedom to make decisions, contract out work, and reinvest in production and exploration.

Opponents of the move say it would undermine national sovereignty.

They believe foreign oil companies will come in and take a share of Mexico's oil profits, although the government insists they will only be offered incentive payments.

Mexico's constitution says that the oil industry must remain in state hands, and suggestions of allowing more private involvement have provoked a strong reaction among some Mexicans.

We have to make clear that for Pemex, this reform is a matter of survival Jesus Reyes Heroles Pemex

Oil revenue constitutes some 40% of the federal budget. Mexico was the world's sixth biggest oil producer in 2006 but production has been falling.

Speaking on Tuesday, the head of Pemex, Jesus Reyes Heroles, said the company would face inertia and stagnation if the bill did not get approval.

"We have to make clear that for Pemex, this reform is a matter of survival," he said.

Members of President Felipe Calderon's National Action Party (Pan) and the Institutional Revolutionary Party (PRI) offered to debate the reforms for 50 days followed by a vote in an extraordinary session.

However, the protesters have called for a 120-day debate.

"We will continue to insist on the need for a wide open national debate... we ask that Congress's recess be used for this debate," Senator Dante Delgado was quoted as saying by Mexican newspaper Reforma.

Congress ends its spring session on 30 April, to resume on 1 September.