Methodology For Measuring National Content In Mexican Hydrocarbon Sector

Carlos Ochoa Valenzuela is a Senior Counsel in Holland & Knight's Mexico City office.

The Three Legal Schemes Impacted in the National Oil Industry by This Methodology Are Allocations, Contracts for Exploration, and Extraction and Permits

HIGHLIGHTS:

• Enacted on Oct. 31, 2014, the regulations related to constitutional energy reform in Mexico complement the new legal framework of the country's hydrocarbon and electrical industry.
• The methodology that defines the national content required in all the activities related to the Mexican energy sector has set the rules that must be followed by the potential participants.

The "Methodology for measuring national content in Allocations and Contracts for Exploration and Extraction of Hydrocarbons, as well as for the Permits in the Hydrocarbons Industry"was published on Nov. 13, 2014,in Diario Oficial de la Federación, the Mexican Official Federal Gazette (akin to the Federal Register in the United States).