“Hydrocarbons Law in Mexico: Should Investors Be Alarmed?”
Experts in the energy sector have different points of view regarding the potential impact of a new reform that would change the rules governing hydrocarbon permits in Mexico and that would give the government powers to intervene in the sector during an emergency.
…According to Rodolfo Rueda, a partner at the Thompson & Knight law firm , the law deliberately sets aside changes to the regulation of the upstream segment that hydrocarbons regulator CNH oversees, at a time when the government hopes to avoid direct confrontations with big international oil companies. Instead, it focuses on permits for the downstream and midstream sectors that watchdog CRE and the Ministry of Energy (Sener) monitor .
“The most worrying point of the initiative is that it proposes changes to article 57 and a new article 59 bis of the Hydrocarbons Law, which would imply that both CRE and Sener will have the power to temporarily occupy the facilities, intervene in the operations of the permit holders and / or suspend permits already issued to guarantee the interests of the nation, ”Rueda told BNamericas.