|May 5, 2014|
Previously published on April 30, 2014
On April 30, 2014, President Enrique Peña Nieto introduced to the Mexican Congress nine new bills, as well as amendments to several existing laws, to implement the constitutional energy reform passed on December 21, 2013. The energy reform eliminates a restrictive legal framework that has limited private investment and participation in Mexico’s energy industry for more than 75 years.
The nine new bills introduced by President Peña Nieto are the following:
- Law of Hydrocarbons;
- Law of Hydrocarbon Revenues;
- Law of the Electric Industry;
- Law of Geothermal Energy;
- Law of the Coordinated Regulating Agencies of the Energy Sector;
- Law that creates the National Agency of Industrial Security and Environmental Protection of the Hydrocarbon Sector;
- Law of Petroleos Mexicanos (PEMEX);
- Law of the Federal Electricity Commission (CFE); and
- Law of the Mexican Petroleum Fund for Stabilization and Development
The bills specifically provide for contracts in the form of licenses as well as production-sharing and profit-sharing contracts. They also establish local content requirements for oil and gas operations that will be implemented gradually beginning in 2015 and will reach at least 25 percent by 2025.
The bills are expected to be debated before the Mexican Congress in an extraordinary session of Congress in June.