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Mexico Energy

Thompson & Knight has been an active participant in the Mexican energy industry for decades. We have helped our clients participate in many of the groundbreaking projects that led to the opening of Mexico’s energy sector and assisted them in analyzing and understanding the business opportunities in a heavily regulated environment.

Overview

Thompson & Knight has been an active participant in the Mexican energy industry for decades. Through our offices in Monterrey and Mexico City, the Firm represents energy clients across Mexico and around the globe. We have helped our clients participate in many of the groundbreaking projects that led to the opening of Mexico’s energy sector and assisted them in analyzing and understanding the business opportunities in a heavily regulated environment, including those derived from federal administration changing agendas.

“The service is excellent; all of the lawyers respond quickly and provide skilled insight into the relevant issues.” – Client Testimonial, Chambers Latin America 2019

We have assisted clients in Mexico’s current energy market through tenders for oil and gas exploration and extraction blocks and midstream assets as well as various CFE tenders for power auctions. Through our attorneys’ decades of experience, Thompson & Knight offers a broad vision of the market, rather than just insight into changes derived from recent reforms and counter-reforms. This is particularly useful for our clients’ understanding of opportunities within a new federal administration.

Furthermore, several of the Firm’s attorneys in Mexico have worked as corporate counsel in the energy industry, and this experience enhances our insights and perspectives in providing legal counsel in such a complex and dynamic marketplace.

Our service in Mexico is not limited to the interpretation of the law. We provide our clients legal advice with a business sense and an inside perspective on the particularities of dealing with complex state-controlled entities such as PEMEX (Petróleos Mexicanos) and CFE (Comisión Federal de Electricidad) as well as regulatory agencies such as CRE (Comisión Reguladora de Energía), CNH (Comisión Nacional de Hidrocarburos), and ASEA (Agencia de Seguridad, Energía y Ambiente).

Our energy practice in Mexico includes advising clients with regard to:

  • The ongoing tenders under Mexico’s new regulatory landscape, including:
    • Designing the legal structure for oil, gas, and electric energy projects
    • Preparing all documents related with public tenders
    • Interpretation of the complex regulatory landscape
    • Structuring joint ventures and strategic alliances, consortiums, and similar arrangements to participate in public tenders
  • General corporate advice
  • Drafting complex power purchase agreements under the new Power Industry Law
  • Negotiations with PEMEX and other state-owned enterprises
  • General real estate matters, including negotiating easements, rights-of-way, and other land uses with private owners and ejidos
  • Mergers and acquisitions
  • Private equity and capital markets transactions
  • Due diligence
  • Day-to-day operations of service or public works contracts, including government filings and regulatory matters

Honored among the top firms in Mexico for Energy & Natural Resources in The Legal 500 Latin America 2018 by Legalease

Unique experience assisting clients in groundbreaking energy projects in Mexico

Ranked among the top firms in Mexico for Energy & Natural Resources in Chambers Latin America 2019 by Chambers and Partners

Experience

  • Represented BHP in the award and execution of the Trion Block deepwater license agreement in association with PEMEX – the first-ever farm-out with PEMEX in history – where BHP secured operatorship and a 60 percent interest in the license agreement covering the areas constituting the Trion Block, located south of Mexico’s maritime border with the United States
  • Represented CNOOC Ltd. in the award and execution of two deepwater license agreements, Block 1 and Block 4 in the Perdido Fold Belt, as a result of Round 1.4 conducted by the CNH
  • Assisted in the incorporation of the first-ever Mexican Association of Qualified Suppliers (“Asociación Mexicana de Suministradores Calificados, A.C.”); Thompson & Knight Partner Claudio Rodríguez Galán was also appointed as Secretary, Non-Member of the Board and Legal Advisor of the Association
  • Represented Fisterra Energy, a subsidiary of The Blackstone Group, in the sale of the Mexican holding companies of Ventika, Mexico’s largest onshore wind farm and one of the largest wind farms in Latin America
  • Represented Engie (formerly Gaz de France Suez) in drafting a Power and Capacity Supply Agreement under the terms of the new Power Industry Law and in the transformation of its legacy federal permits and interconnection agreements to participate within the new Wholesale Power Market
  • Represented Spanish multinational CEPSA SAU in the award of three Exploration and Extraction Contracts in association with PEMEX and DEA Deutsche Erdoel to develop shallow water blocks in the Gulf of Mexico
  • Represented Eosol Energy in its $134 million sale of a 90% stake in two solar power projects in the State of Durango, Mexico representing approximately 251 MW of nominal capacity
  • Represented Canadian Solar in defending its interconnection rights before the Mexican National Center of Energy Control
  • Represented Fieldwood Energy LLC, together with Petrobal, S.A.P.I. de C.V., in securing a production sharing contract from the National Hydrocarbons Commission (the “CNH”), which was awarded during Mexico’s second round of bidding since the country’s historic decision to open its oil and gas reserves to private energy exploration
  • Represented EnCap Investments LP in its $225 million investment in the formation of Sierra Oil & Gas, Mexico’s first independent exploration and production company and one of the first private investments in Mexico oil and gas since 1938
  • Represented multiple companies in the third international public bid round to produce hydrocarbons in the mature fields of Chicontepec, Mexico called by PEMEX, including the winning company for the “Humapa” block
  • Advised Braskem Idesa on the Ethylene XXI project regarding clearing out rights of use of land where the main port was adapted to receive all construction materials for development of the petrochemical facility within the Municipality of Nanchital, Veracruz, including approaching local authorities for negotiation of lease agreement, clearing of title, and other related issues
  • Represented multiple companies in the first and second international public bid rounds to produce hydrocarbons in the mature fields of Southern and Northern Mexico called by PEMEX, including the winning consortium for the “San Andrés” and “Tierra Blanca” blocks
  • Represented Hanwha in the drafting and negotiation of its EPC for the construction of a photovoltaic project in Mexico awarded under Long-Term Power Auction
  • Assisted Newpek, LLC, a wholly owned subsidiary of Monterrey-based Alfa S.A.B. de C.V., in a $1.3 billion purchase, sale, and joint development transaction involving the Eagle Ford Shale in South Texas
  • Represented three of the six consortiums in the process of developing non-associated natural gas fields in the Burgos Basin with the upstream subsidiary of PEMEX (Cuervito, Fronterizo, Pirineo and Nejo Blocks)
  • Provide international corporate and tax planning to a Mexican company related to construction projects (including pipelines, terminals, and offshore production platforms) in Mexico and throughout Latin America
  • Assisted Iberdrola I&C in the award and execution of a contract for the construction of refinery-related infrastructure as bid by PEMEX Refinación
  • Have represented Petrobras, S.A. in its projects and operations in Mexico, including service contracts with PEMEX, bidding for independent power producer and gas pipeline construction projects, analysis of gas distribution projects, and related energy industry projects and negotiations
  • Assisted a U.S.-based energy company with its filings before the Federal Energy Regulatory Commission and with the review and counsel of maintenance and operation contracts with PEMEX