Mexico’s energy reform provides significant opportunities in oil and gas exploration and production
By John B McNeece III, Eric Save and Michael S Hindus
Mexico’s new energy legislation, which went into effect on 12 August 2014, will completely restructure the Mexican energy sector, including both hydrocarbons and electricity. This legislation opens up oil and gas exploration and production (E&P) to the private sector, through authorisation of new contract arrangements with the Mexican state or with PEMEX (Mexico’s state-owned oil and gas company), while reaffirming Mexico’s ownership of hydrocarbons in the ground. Mexico’s opening to the private sector will generate numerous opportunities for E&P operators, the E&P arms of international oil and gas companies, suppliers and investors.
The new legislation — a package of 21 new laws and amendments to existing statutes known as the Secondary Laws — implements the reforms to the Mexican Constitution on energy that were promulgated in December 2013.
Regarding oil and gas, the Secondary Laws open up E&P to the private sector, through authorisation of new types of contract arrangements with the Mexican state or with PEMEX, while reaffirming the state’s ownership of hydrocarbons in the ground. The new contract arrangements will include production-sharing and profit-sharing contracts, together with licence agreements where the E&P contractor can retain the extracted hydrocarbons. The initial opportunities for the private sector in oil and gas E&P will derive from potential joint ventures with PEMEX. There will be subsequent opportunities presented by open bidding for oil and gas resources identified by the Mexican Ministry of Energy…
Click on the link below to read the rest of the Pillsbury briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.