Energy, Mining and Infrastructure
Mexico
Legal Alert August, 2014
Visit our site: www.bakermckenzie.com/mexico
Visit our blog www.mexicoenergybrief.com
Guadalajara
Blvd. Puerta de Hierro 5090
Fracc. Puerta de Hierro
45110 Zapopan, Jalisco, Mexico
Tel. +52 33 3848 5300
Fax +52 33 3848 5399
Juarez
P.T. de la Republica 3304, Piso 1
32330 Juarez, Chihuahua, Mexico
P.O. Box 9338 El Paso, TX 79995
Tel. +52 656 629 1300
Fax +52 656 629 1399
Mexico City
Edificio Scotiabank Inverlat,
Piso 12
Blvd. M. Avila Camacho 1
11009 Mexico, D.F., Mexico
Tel. +52 55 5279 2900
Fax +52 55 5279 2999
Monterrey
Oficinas en el Parque, Torre Baker & McKenzie - Piso 10
Blvd. Antonio L. Rodriguez
1884 Pte.
64650 Monterrey, Nuevo Leon, Mexico
Tel. +52 81 8399 1300
Fax +52 81 8399 1399
Tijuana
Blvd. Agua Caliente 10611, Piso 1
22420 Tijuana, B.C., Mexico
P.O. Box 1205 Chula Vista,
CA 91912
Tel +52 664 633 4300
Fax +52 664 633 4399
Mexico's Energy Reform
Petroleos Mexicanos Law (PEMEX Law)Background
On August 11 2014, it was published in the Federal Official Gazette the Decree whereby the new Petroleos Mexicanos Law (the “Law”) is issued.
With this Law, PEMEX becomes a State Productive Company, foreseeing the merger of (i) PEMEX-Exploracion y Produccion with PEMEX-Gas y Petroquimica Basica, and (ii) PEMEX-Petroquimica with PEMEX Refinacion.
Implications for PEMEX's contractors
PEMEX’s Board of Directors will issue the necessary provisions in order for any and all procurements carried out by itself or by its subsidiary productive companies, comply with the constitutional principles of adequate public expenditure. Also, the Law of Public Works and Services Related to them and the Law of Acquisitions, Leases and Services of the Public Sector are amended, so that these may not be applicable to procurement procedures made by PEMEX. Agreements entered prior to this law, will continue with the same legal regime until their conclusion.
Relevant Aspects of the Law Pemex will continue to be 100% owned by the Mexican State. PEMEX is given budgetary autonomy and a special debt regime is created. In addition its disputes will now be resolved in accordance with commercial and civil law.
The Board of Directors shall be comprised of five representatives of the Federal Executive Branch of Government and five independent members who are to be ratified by Senate. The CEO and all Board Members will be proposed by the Mexican President. Until the Board of Directors issues a new corporate structure, the PEMEX subsidiaries (PEMEX Exploracion y Produccion,
PEMEX Gas y Petroquimica Basica, PEMEX Petroquimica and PEMEX Refinacion) will continue with their regular operations.
The guidelines to be issued by the Board of Directors will contain the rules for procurements made by PEMEX as a State Productive Company, following the principles of transparency and equality.
ConclusionPEMEX will remain performing all its current activities. New legislation grants special emphasis to (i) the development of new technologies, (ii) the partnership opportunity with third parties and (iii) a better corporate structure to be able to compete with the oil and gas companies that will begin operations in Mexico in the near future.
We will be happy to answer any questions related to the content of the PEMEX Law
ContactsBenjamin Torres Barron benjamin.torres-barron@bakermckenzie.com Jorge Guadarrama Yañez jorge.guadarrama-yanez@bakermckenzie.com Luis Carbajo Martinez luis.carbajo-martinez@bakermckenzie.com Carlos Alberto Linares-Garcia carlos.linares-garcia@bakermckenzie.com Hector Reyes Freaner hector.reyes-freaner@bakermckenzie.com Jose M. Larroque jose.larroque@bakermckenzie.com Federico Ruanova Guinea federico.ruanova-guinea@bakermckenzie.com Juan Carlos Valles Zavala juan.valles-zavala@bakermckenzie.com Eduardo Romero Ramos eduardo.romero-ramos@bakermckenzie.com Alejandro Sepulveda alejandro.sepulveda@bakermckenzie.com Gaspar Gutierrez Centeno gaspar.gutierrez-centeno@bakermckenzie.com
Juan Bernardo Garcia Garza juan.garcia-garza@bakermckenzie.com Jorge L. Ruiz jorge.ruiz@bakermckenzie.com Fabian Monsalve Agraz fabian.monsalve-agraz@bakermckenzie.com Reynaldo Vizcarra Mendez reynaldo.vizcarra-mendez@bakermckenzie.com Edmundo Elias Fernandez edmundo.elias-fernandez@bakermckenzie.com Manuel Padron Castillo manuel.padron@bakermckenzie.com Adriana Ibarra Fernandez adriana.ibarra-fernandez@bakermckenzie.com
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