Mexico’s Energy Reform Provides Significant Opportunities In Oil And Gas Exploration And Production

Mexico’s new energy legislation, which went into effect on August 12, 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 authorization of new contract arrangements with the Mexican State or with PEMEX, 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.

Originally published in Pratt’s Energy Law Report in November/December 2014.

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