FOLLOWING APPROVAL OF SECONDARY LEGISLATION BY THE SENATE'S ENERGY COMMISSION AND LEGISLATIVE STUDIES COMMISSION IN MEXICO, ON 21 JULY 2014 THE MEXICAN SENATE ALSO APPROVED FOUR LEGISLATIVE PACKAGES TO IMPLEMENT ITS ENERGY REFORM.
The Mexico Senate's voted the four legislative packages that contain the new legal framework that will regulate the energy sector, which will allow the implementation of the constitutional reform enacted last December. This reform is the most significant affecting the sector as it brings an end to the State's monopoly over the electricity and oil and gas sectors, and opens the door to private investment in a sector that has been monopolised since 1938.
1. Next steps:
After concluding this stage of the legislative process, on 28 July will continue the debate on the secondary legislation in the Mexico´s Chamber of Deputies.
Although the deadline to approve the legislation is September, it is expected that new legislation will be sent to the government on 31 July for publication in the official state journal, entering into force thereafter. After it has been published, we will know the legal framework governing the energy sector.
- December 2013 - The constitutional reform is approved, which changes the articles related to the oil & gas and electricity sectors, opening them to private investment
- March 2014 - Round 0: PEMEX applied for the areas it wishes to continuing exploring and producing from; the remaining areas will be auctioned among private companies
- 30 April 2014 -Proposal for secondary legislation to complete the energy reform
- 15 July - Approval of secondary legislation by the Senate's Energy Commission and Legislative Studies Committee in Mexico
- 17 July -The Mexican Senate met to discuss the secondary legislation
- 21 July -The Senate approved secondary legislation by majority vote
- 28 July -The legislation will be debated in the Chamber of Deputies with a view to final approval
- 31 July or September - Final approval and entry into a force of the new energy legislation (although the deadline to approve the legislation is September, it is expected to be approved by 31 July)
- 17 September 2015 -The Energy Secretariat (Sener) and the National Hydrocarbons Commission (CNH) will issue a resolution with their recommendations on PEMEX (the blocks that are open to private investment will be announced)
- 2015 - First oil & gas auction, in which 30 blocks of mature and new fields will be auctioned