Mexico: Energy: Oil & Gas

This country-specific Q&A provides an overview of Energy – Oil & Gas laws and regulations applicable in Mexico.

  1. Does your jurisdiction have an established upstream oil and gas industry? What are the current production levels and what are the oil and gas reserve levels?

  2. How are rights to explore and exploit oil and gas resources granted? Please provide a brief overview of the structure of the regulatory regime for upstream oil and gas. Is the regime the same for both onshore and offshore?

  3. What are the key features of the licence/production sharing contract/concession/other pursuant to which oil and gas companies undertake oil and gas exploration and exploitation?

  4. Are there any unconventional hydrocarbon resources (such as shale gas) being exploited and is there a separate regulatory regime for unconventionals?

  5. Who are the key regulators for the upstream oil and gas industry?

  6. Is the government directly involved in the upstream oil and gas industry? Is there a government-owned oil and gas company?

  7. Are there any special requirements for or restrictions on participation in the upstream oil and gas industry by foreign oil and gas companies?

  8. What are the key features of the environmental and health and safety regime that applies to upstream oil and gas activities?

  9. How does the government derive value from oil and gas resources (royalties/production sharing/taxes)? Are there any special tax deductions or incentives offered?

  10. Are there any restrictions on export, local content obligations or domestic supply obligations?

  11. Does the regulatory regime include any specific decommissioning obligations?

  12. What is the regulatory regime that applies to the construction and operation of offshore and onshore oil and gas pipelines?

  13. What is the regulatory regime that applies to LNG liquefaction and LNG receiving terminals? Are there any such terminals in your jurisdiction?

  14. What is the regulatory regime that applies to gas storage (not LNG)? Are there any gas storage facilities in your jurisdiction?

  15. Is there a gas transmission and distribution system in your jurisdiction? How is gas distribution and transmission infrastructure owned and regulated? Is there a third party access regime?

  16. Is there a competitive and privatised downstream gas market or is gas supplied to end-customers by one or more incumbent/government-owned suppliers? Can customers choose their supplier?

  17. How is the downstream gas market regulated?

  18. Have there been any significant recent changes in government policy and regulation in relation to the oil and gas industry?

  19. What key challenges have been identified by the government and/or industry in relation to your jurisdiction’s oil and gas industry? In this context, has the Covid-19 pandemic had an impact on the oil and gas industry and if so, how has the government and/or industry responded to it?

  20. Are there any policies or regulatory requirements relating to the oil and gas industry which reflect/implement the global trend towards the low-carbon energy transition?