U.S. Oil & Gas Lease vs. Mexican Service Contracts

The Mexican Energy Reform that is currently being implemented introduced a paradigm shift in the hydrocarbons sector of our country that allows private investment in upstream activities, previously reserved exclusively to the Government. The series of constitutional, legal and regulatory changes derived from said Reform give way to exciting, new investment opportunities, especially for Texans who have a privileged geographical location as our northern neighbors and are close to Mexican areas that are rich in hydrocarbons. However, it can be overwhelming for any investor to move their capital and efforts to another jurisdiction, even if it is their backyard. Therefore, I would like to take this opportunity to depict some of the legal differences between the Mexican and U.S. hydrocarbons legal regimen from a business perspective, in an attempt to shed some light on the nature of the opportunities that are currently available for Texan oil & gas investors in Mexico.