The law will change three articles of the nation's constitution, thereby allowing foreign investment and production-sharing agreements in Mexico for the first time in more than 70 years.
The reform was necessary because the country's oil and gas model had shown "signs of exhaustion" for years, Ochoa said.
"Oil production had been declining. Gas production had been declining as well. We used to be self-sufficient in natural gas, and now we're importing a third of our consumption from the U.S.," he said. "We are importing 50 percent of gasoline in Mexico. We are also importing 65 percent of petrochemicals."
Mexico's daily oil production has dropped to 2.5 million barrels from 3.5 million. The problem is not a lack of oil, however, but a lack of money. Mexico produces nothing from the deep waters (below 500 feet) of the Gulf of Mexico, while U.S. producers turn out more than 300,000 barrels per day from that depth in the Gulf.
Deep-water drilling is expensive and risky, but Mexican state oil company Pemex has been prohibited from entering into production-sharing agreements with foreign companies since the industry was nationalized in 1938.