Energy Reform Implementation Laws - Hydrocarbon Law

On April 30, 2014, the Federal Government submitted to Congress a package of nine new laws and twelve energy statutes to be amended ("supplemental laws"), resulting from the recent changes to Mexico's Federal Constitution with respect to the energy reforms.

Regarding the proposal for the Hydrocarbon Law, the most important aspects of the Hydrocarbon Law proposal (the "Law") are described below:

• It is stated that hydrocarbons in the subsoil belong to the state and the exploration and exploitation of oil and other hydrocarbons are of strategic importance. The state will exercise its right to explore and exploit these resources through assignments granted by the Ministry of the Economy ("SENER" for its acronym in Spanish) to government-owned production companies or by entering into agreements with government-owned companies or private entities.