The measure opens up state-run oil fields to foreign investment, allowing private firm to explore and extract oil and gas alongside the state-run company Pemex, and subsequently claim a share of any profits made.
Following the Senate vote President Enrique Pena Nieto wrote on Twitter that it was "a significant decision for Mexico". Mr Pena Nieto said it was necessary to modernise Mexico's energy sector and increase oil production, which has dropped from 3.4 million barrels per day in 2004 to the current rate of 2.5 million barrels per day.