Akin Gump Strauss Hauer & Feld LLP (JD Supra Mexico)

On March 27, 2018, the Comisión Nacional de Hidrocarburos (“CNH”) completed the Presentation and Opening of Bid Proposals for the First Tender of Round Three (“Round 3.1”), which was first announced on September 29, 2017. Round 3.1 attracted 30 oil and gas companies from around the world including Royal Dutch Shell, ExxonMobil, Premier Oil, Pemex, Lukoil, BP, Deutsche Erdoel, Repsol, ENI and...

On January 31, 2018, the Comisión Nacional de Hidrocarburos (“CNH”) completed the Presentation and Opening of Bid Proposals for the Fourth Tender of Round Two (“Round 2.4”), which was first announced on July 20, 2017. Round 2.4 attracted 29 oil and gas companies from around the world including Royal Dutch Shell, ExxonMobil, Chevron, Pemex, Lukoil, Qatar Petroleum, Mitsui, Repsol, Statoil and...

• Mexico’s second farmout bid round to find partners for PEMEX oil and gas development yielded mixed results, with 2 onshore licenses awarded and 1 shallow water PSC vacated with no bids • Egyptian company Cheiron Holdings wins Cardenas Mora block with 13% additional royalty and $41,500,000 bonus • German company DEA Deutsche Erdoel wins 4-way tie for Ogarrio block with 13% additional...

On June 19, 2017, the Comisión Nacional de Hidrocarburos (CNH) completed the Presentation and Opening of Bid Proposals for the First Tender of the Ronda Dos (“Round 2.1”), which was first announced on July 20, 2016. Round 2.1 attracted 36 bidders: 20 individual companies and 16 consortia, including Petroleos Mexicanos, DEA Deutsche Erdoel, Talos Energy, Noble Energy, Chevron, Shell, Total and...

Mexico’s Crown Jewels: Deep Water and Farmout Tender Results - On December 5, 2016, the Comisión Nacional de Hidrocarburos (“CNH”) conducted the Opening and Presentation of Bid Proposals Ceremony for the Ronda Uno, Fourth Tender (“Fourth Tender”). Simultaneously with the Fourth Tender, the CNH conducted the first ever partnership auction for Petróleos Mexicanos (“Pemex”). The unusual...

On February 16, 2016, the Energy Regulatory Commission (CRE) published the general administrative provisions regulating open access to the National Transmission Network (RNT) and the General Distribution Networks (RGD) and provision of related services (the “Provisions”). The Provisions were enacted by the CRE in order to further promote efficient development of the generation, transmission and...

If you read one thing... - The model Agreements provide the initial framework for the contractual relationships between Mexico’s National Center for Energy Control, on the one hand, and transporters, distributors or market participants, on the other. - The Agreements build upon the Guidelines for the Wholesale Electricity Market (WEM), published by Mexico’s Ministry of Energy in

On January 11, 2015, Mexico’s Ministry of Energy (SENER) published the general terms for the separation of the Federal Electricity Commission (CFE) in the Federal Official Gazette (the “Terms”). This action was taken pursuant to the 2013 constitutional mandate, as well as the provisions set forth in the Electricity Industry Act (Ley de la Industria Eléctrica) and the Law of the Federal...

Mexico’s Energy Industry - Round One, Fourth Tender – Deep Water Blocks - At last, the much anticipated deep-water bidding round has been announced in Mexico. Following the precedent set in the recently completed auctions for Round 1.3, Mexico has used a form of license contract as opposed to a production sharing contract model for these key areas. On December 17, 2015, the Comisión...

If you read only this... - On December 15, 2015, the Mexican Comisión Nacional de Hidrocarburos (CNH) completed the third stage of its so–called “Round One” upstream oil and gas auctions. It is estimated that these contract areas contain an estimated 2.5 billion barrels of oil equivalent (boe) distributed in multiple oil and gas fields. - As a major shift from the first two tenders,

On September 8, 2015, Mexico’s Ministry of Energy (SENER) published the Electricity Market Guidelines (the “Guidelines”) in the Federal Official Gazette. The Guidelines define and specify rules and procedures for the administration and operation of the Wholesale Electricity Market (the “Market”) in Mexico. SENER prepared a draft of the Guidelines in February 2015; however, the…

On August 25, 2015, the Comisión Nacional de Hidrocarburos (CNH) published the final form of the Bidding Guidelines (“Guidelines”) and the Model Production Sharing Contract (PSC) for the Second Tender initially published on February 27, 2015 (“Second Tender”). Currently, 20 companies from around the world, grouped into 14 prequalified Individual and Consortium Bidders, will vie for five shallow-wa

Midstream Regulations - On July 27, 2015, the Comision Reguladora de Energia (“CRE”) issued its proposed regulations for the pipeline transportation and storage of petroleum, LNG and petrochemicals (“Midstream Regulations”). They are currently under review and open for public comments at the Comision Federal de Mejora Regulatoria (“COFEMER”), a federal entity in charge of managing all...

On July 15, 2015, the First Tender initially published on December 11, 2014 (First Tender), came to a conclusion when the Comisión Nacional de Hidrocarburos (CNH) conducted the Opening and Presentation of Bid Proposals Ceremony. This historic event marked the official reopening of the Mexican energy industry to global participants after more than seventy (70) years. Even though twenty...

Ronda Uno, First Tender - On June 9, 2015, the Comisión Nacional de Hidrocarburos (“CNH”) published the final form of the Bidding Guidelines (“Guidelines”) and the Model Production Sharing Contract (“PSC”) for the First Tender initially published on December 11, 2014 (“First Tender”). Currently, 38 companies from around the world, grouped into 26 prequalified Individual and Consortium...

On May 29, 2015, the Comisión Nacional de Hidrocarburos (the “CNH”) released revised versions of the Bidding Guidelines (the “Guidelines”) and the Model Production Sharing Contract (the “PSC”) for the First Tender published on December 11, 2014 (the “First Tender”). The First Tender contains fourteen (14) exploration Contract Areas located in shallow waters in the Gulf of Mexico. Only a select...

On April 30, 2015, the Comisión Nacional de Hidrocarburos (CNH) released a revised version of the Bidding Guidelines for the First Tender published on December 11, 2014. This first tender seeks to auction fourteen (14) shallow water exploration and production blocks in the Gulf of Mexico under a production-sharing scheme.

On March 25, 2015, the Comisión Nacional de Hidrocarburos (“CNH”) released revised versions of the Bidding Guidelines (the “BG”) and the Model Production Sharing Contract (the “PSC”) for the First Tender published on December 11, 2014 (the “First Tender”). The First Tender contains fourteen exploration Contract Areas located in shallow waters off the Gulf of Mexico. Thus far, 49 companies have...

On February 27, 2015, the Comisión Nacional de Hidrocarburos (CNH) published in the Federal Gazzette (or Diario Oficial de la Nación, DOF) the Call for Bidders No. CNH-R01C02/2015, the Bidding Guidelines and the Model Production Sharing Contract (PSC) for five mature contract areas located in shallow waters off the Gulf of Mexico coastlines of Veracruz, Tabasco and Campeche. This summary...

In contrast to unpredictable renewable energy policies in the United States and the European Union, Mexico has emerged as a lightning rod for renewable energy investment. As renewable energy investors assess changing global opportunities, Mexico continues to offer numerous stable investment prospects. Mexico’s investment-grade credit rating provides potential investors one of the few high-grade...

In 1992, Mexico thrust itself on to the forefront of the international power private investment stage by amending its power sector laws to permit private sector investment in power generation assets. Those early energy reforms permitted developers and investors to enter the power generation sector (which had been reserved exclusively for the Mexican government) and sell power to the Comisión...

On April 30, 2014, President Enrique Peña Nieto formally presented to the General Congress of the United Mexican States (Congress) the much anticipated secondary legislation to implement the revolutionary constitutional changes that were passed in December 2013. His sweeping proposal includes nine new bills, as well as amendments to several existing laws. While many industry players predicted...

While most jurisdictions within Latin America and the Caribbean base their core electric generation asset portfolio on fossil fuels, renewable energy technologies are now changing the regional energy landscape. Now, wind, solar, hydro, tidal, and geothermal power plant developers are focusing efforts on transforming Latin America and the Caribbean into more eco-friendly power generators. As a...

Yet again the Mexican government has surpassed the expectations of the international marketplace. Many prognosticators and industry participants believed that the constitutional restrictions against international participation in the upstream sector would never be changed. The PRI and PAN changed it. Then, when most believed that the government would never be able to introduce the critical...

Background - On December 12, 2013, Mexico’s lower chamber of Congress approved the country’s largest energy reform legislation in more than 75 years. The proposal ends Mexico’s state-owned monopoly of the oil and gas industry. Beginning in 1938, Mexicans have recognized Oil Expropriation Day, the day set aside to commemorate the nationalization of the oil industry. Since that time, the

Mexican President Enrique Peña Nieto has responded to over a decade of declining oil and gas production with vocal support of reform of the Mexican energy sector. While the Mexican Constitution provides PEMEX a monopoly in the upstream oil and gas sector, the new president’s vision would amend Articles 27 and 28 of the Constitution to allow foreign participation in the sector, as well as...

As the World focuses on dramatic shifts in government following the dawn of Arab Springs, a dramatic revolutionary change is quietly taking place with our neighbor to the south. Mexico's President Enrique Pena Nieto has introduced proposed reforms to Mexico's constitution which would shatter Petroleos Mexicanos' (Pemex) 75-year old monopoly over the exploration and exploitation of the country's...