Client Alert: Mexico Energy Reform Update

Following a year-long legislation process that began on December 12, 2013, Mexico’s National Hydrocarbons Commission (the “CNH”) published today the bid guidelines (the “Guidelines”) through which the first 14 Round One shallow-water oil exploration and production blocks will be publicly tendered in July 2015. This initial tender follows an extensive and fast-track legislation process that began with the amendment of the Mexican Constitution in December 2013; the passing of the secondary legislation by the Mexican Congress on August 11, 2014; the issuance by the Ministry of Energy of the secondary legislation’s regulatory laws on October 31, 2013; and the publication by the CNH of the administrative rules to carry out exploration and production contract bids on November 28, 2014. This Client Alert provides a brief summary of the key terms in the Guidelines and includes commentary regarding the overall significance of their publication in connection with the Mexican oil and gas industry.