Q: Has the development of Round One raised investor confidence
in the Mexican upstream sector?
A: Unfortunately, one of the main concerns clients had going
into the oil and gas business in Mexico was that corruption could
potentially lead to the awarding of the contracts under suspicious
circumstances. The three phases of Round One issued so far,
however, have been carried out under absolute transparency by CNH.
As we all know, confidence is a fundamental but fragile factor, and
even though there is confidence in the award methods, this trust in
the institutions and regulators needs to extend to the whole range
of activities that encompass the operation of a hydrocarbons block.
Effective acquisition and recognition of rights of way and
transparency in the accounting and financial procedures of the oil
taxation instruments come to mind. These factors are especially
relevant to give confidence to present and future investments.
