The government of President Enrique Pena Nieto proposed changes to the way the oil and natural gas sector was governed.
One of the main features "is the free-market participation and competition between the state companies and private firms in all activities, including oil exploration and production, refining [and electricity] for the benefit of consumers," Energy Minister Pedro Joaquín Coldwell said Wednesday.
The measures, if passed, open a Mexican energy sector controlled by state-run Petroleos Mexicanos, known also as Pemex, since the 1930s.
Mexico's president is struggling to overhaul a sagging energy sector. His government set a goal of producing 3.5 million barrels of oil per day by 2025, which would be a 40 percent increase from 2013 levels.
The oil sector accounted for 13 percent of the country's export earnings last year. The country, a top 10 oil producer, had an estimated 10 billion barrels of proven oil reserves as of 2013.