The Hydrocarbons Law, the Hydrocarbons Revenue Law, and the PEMEX Law12 set forth the framework for oil and gas development in Mexico. These laws are the cornerstone of the energy reform. Indeed, increased production of oil and natural gas is key to the political legs of reform: increasing economic growth and job creation, improving Mexico’s overall fiscal outlook, and decreasing electricity prices by substituting high-cost diesel and fuel oil with new supplies of natural gas.
The basic components of the hydrocarbon reform laws include:
Conversion of PEMEX from a monopoly to a “state-owned productive enterprise” with special legal status, increased...