MEXICO- President Enrique Pena Nieto has signed into law a bill that allows foreign companies to drill for oil for the first time since the sector was nationalized in 1938.

Mr. Nieto, while signing the bill, says the reform will help Mexico attract the investment needed to boost its falling oil output.

"This is the beginning of a new history for our country. We have opened the doors for a better future for all," said Mr Pena Nieto.

According to the bill, Private companies will be allowed to sign contracts to drill for oil and gas with state-controlled firm Pemex, which will get a share of the profits.

Oil production in Mexico has dropped from 3.4 million barrels per day in 2004 to the current rate of 2.5 million barrels per day.