Historic reform in Mexico clears the way for foreign investment in energy sector

By Carlos R Valencia Barrera, Miguel B de Erice Rodriguez and Kelly Tubman Hardy

The energy reform proposed by Mexico’s Peña Nieto administration has been approved by the Mexican Congress and, in rapid succession, by a majority of the Mexican state legislatures. This sweeping historic reform amends the Mexican constitution, clearing the way for foreign investment in the energy sector.

As noted in DLA Piper’s prior client alert on Mexican energy reform, ‘A new test for the pacto por México: energy reform — key points for energy companies’, unlike Mexico’s recent telecommunications reform (which was very detailed and aimed to correct certain market conditions), Mexico’s energy reform is conceptual in nature. It leaves the details to the implementing legislation that is to come but, at the same time, provides a clear roadmap for the regulation of hydrocarbons. The reforms related to power and Mexico’s Federal Electricity Commission will be implemented as reported in the firm’s prior client alert…

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