American Oil and Gas Reporter - May 2015 - 59
By Adrian Lara
NEW YORK-Following the December 2013 passage of
constitutional amendments required to reform the energy sector
and subsequent secondary legislation, the Mexican government
has opened the oil and gas sector to outside investment. There are
now various structures of possible contracts, such as royalty-andtax licenses, production sharing agreement (PSA) contracts, and
profit-sharing contracts in addition to limited service contracts,
which were previously the only option.
Price-based royalties and exploration rental fees are payable
under all contracts and assignments except service contracts, and
all exploration and production companies-including the national
oil company, Pemex-must pay both a hydrocarbon activity tax
based on the contract area and an income tax as great as 30
percent of net profits.
Because the reform has redefined the sector's institutional
arrangement significantly, Pemex has ceased to be the main
contracting agent on the side of the Mexican government. Under
the new oil and gas administrative structure, the Ministry of
Energy (Sener) is the main coordinating agency. Together with
the National Commission for Hydrocarbons (CNH), Sener is in
charge of selecting contractual areas, contract design, and bidding
guidelines. CNH has been strengthened and given greater
technical autonomy, and is now directly in charge of organizing
the bidding rounds.
MAY 2015 59
American Oil and Gas Reporter - May 2015
Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2015
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American Oil and Gas Reporter - May 2015 - Cover3
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