Keywords: Mexico, hydrocarbon, electricity, energy reform, SENER
On August 12, 2014, a package of energy reform legislation became law in Mexico, eliminating a restrictive legal framework that has limited private investment and participation in Mexico's energy industry for more than 75 years.
On August 13, 2014, the Mexican Secretary of Energy (SENER) announced the results of the Pemex Round Zero, a process by which PEMEX requested, and SENER determined, the areas that PEMEX would retain. SENER also provided information with respect to the areas that will be offered in Round One, Mexico's first exploration and production (E&P) tender process open to private participants.
Analysis of Mexico's New Hydrocarbon and Electricity Laws
The newly enacted energy reform legislation, which includes nine new laws as well as amendments to existing laws, implements the December 2013 constitutional energy reform and establishes a new legal framework for Mexico's energy industry.
For a detailed analysis of the new Hydrocarbons Law and Hydrocarbons Revenue Law, see our Legal Update, " Analysis of Mexico's New Hydrocarbons Regime."
For a detailed analysis of the new Electric Industry Law, see our Legal Update, " Analysis of Mexico's New Electric Industry Law."
Full Spanish-language copies of the enacted bills are available as published in the Official Daily Newspaper (Diario Oficial de la Federación).
Round Zero and Round One
On August 13, 2014, SENER announced the results of the Round Zero process, in which PEMEX was granted 83% of Mexico's proven and probable reserves or 2P reserves (as requested by PEMEX) and 21% of Mexico's prospective resources (instead of the 31% requested by PEMEX). A Spanish-language summary of the Round Zero results as published by SENER is available here.
SENER announced that Round One will include: (i) 169 blocks, comprised of 109 exploration blocks and 60 production blocks and (ii) 14 blocks under joint ventures with PEMEX. The draft bid terms for Round One are expected to be published in November of this year. The tender process is expected to commence in the first quarter of 2015, and contracts are expected to be awarded between May and September of 2015. A Spanish-language summary of the Round One areas as published by SENER is available here.
Originally published August 14, 2014
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