Oil regulation—Mexico—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Oil regulation—Mexico—Q&A guide
  • 1. Describe, in general terms, the key commercial aspects of the oil sector in your country.
  • 2. What percentage of your country’s energy needs is covered, directly or indirectly, by oil or gas as opposed to nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production?
  • 3. Does your country have an overarching policy regarding oil-related activities or a general energy policy?
  • 4. Is there an official, publicly available register for licences and licensees? Is there a register setting out oilfield ownership or operatorship, etc?
  • 5. Describe the general legal system in your country.
  • 6. Describe the key laws and regulations that make up the principal legal framework regulating oil and gas activities.
  • 7. Are there any legislative provisions that allow for expropriation of a licensee’s interest and, if so, under what conditions?
  • 8. May the government revoke or amend a licensee’s interest?
  • 9. Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil exploration and production activities in your country. What sanctions for breach may be imposed by the regulatory and oversight bodies?
  • More...

Oil regulation—Mexico—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Mexico published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Dentons López Velarde SC—Rogelio Lopez-Velarde; Jorge Jiménez

1. Describe, in general terms, the key commercial aspects of the oil sector in your country.

Mexico is and is likely to continue being one of the world's major crude oil producers, and certainly a large consumer. After decades of a vertically integrated monopoly in the oil industry, the energy value chain was liberalised in 2014, bringing significant interest and participation of international operators. According to the most recent data published by the National Hydrocarbons Commission (CNH), Mexico had total hydrocarbons reserves of 23,086 million barrels of crude oil equivalent. Around 81 per cent of crude oil is produced offshore while 19 per cent is produced onshore.

As of January 2021, national production of oil was 1,648Mbpd (thousand barrels per day), which is stable compared with January 2020. This relative stability in the production platform is the result of the new federal administration's plan to maintain and increase production of oil by implementing a plan for 20 priority fields operated by Mexico's state-owned oil company, Pemex.

Of total production, around 1,018 is considered heavy crude, 470 light crude and 174 superlight crude.

The aforementioned plan and the continued development

Popular documents