E&P Contract Migration in Mexico

Mexico's Energy Reform liberalized the entire supply chain of the energy sector opening the upstream oil industry to domestic and foreign investors. The Reform allows local and foreign operators, including Petróleos Mexicanos (Pemex) and other state-owned Productive Companies, to participate in E&P ("E&E", acronym for Exploration and Production in accordance with the current Mexican legal framework) by competing in public tenders carried out by the National Hydrocarbons Commission ("CNH", for its acronym in Spanish), an industry regulator responsible for representing the State and carrying on resource management functions. Local and foreign qualified companies can participate in these tenders, including Pemex. Bid winners sign an Exploration & Extraction Contract (CEE) with the CNH.