On August 3, 2020, the National Hydrocarbons Commission (the "CNH") published through the Federal Official Gazette, the resolution whereby the CNH establishes several measures in order to promote the development of petroleum activities (the "Resolution")1 approved at the Extraordinary Session of the Board of Commissioners of the CNH dated July 16, 2020.
The purpose of this Resolution is to promote the development of petroleum activities and to grant legal certainty in order for the Operators to perform the petroleum activities efficiently and continuously in accordance with the plans and programs approved by the CNH. Among other aspects, the following items were established:
a) The Suspension Period shall not be considered as a modification of the effectiveness of the relevant contracts or any of its clauses, neither as an extension of the periods and programs.
b) Except for the obligations related to compliance of the Minimum Work Programs, the Operators shall comply with the rest of their obligations under de relevant contracts, including without limitation, the payment of the considerations set forth in the Hydrocarbon Income Law, as well as complying with their relevant tax obligations.
c) Notwithstanding the suspensive nature of the aforementioned periods and programs, the Operators may continue performing the petroleum activities, during the Suspension Period.
d) The Operators shall submit to the CNH an update to the schedule of their petroleum activities, within 20 business days following the conclusion of the Suspension Period.
a) The effectiveness of the Allocation Titles will not be modified, neither the rest of the terms and conditions established therein; and,
b) The Assignee (Petroleos Mexicanos) may continue performing the petroleum activities, under the terms of the plans or programs approved by CNH.
In the event that the Ministry of Energy determines the extension of the period, the Assignee shall submit to CNH an update to the schedule of its petroleum activities within 20 business days after such determination.
Click here to download Resolution whereby the Mexican National Hydrocarbons Commission establishes several measures in order to promote the development of petroleum activities (Spanish)