CNH held yesterday its 19th extraordinary session of Y2016, whereby it was approved, among other matters, the Guidelines establishing the requirements and procedure for alliances and associations in connection with contracts for the exploration and extraction of hydrocarbons (Lineamientos por los que se establecen los requisitos y el procedimiento para celebrar alianzas o asociaciones respecto de los contratos para la exploración y extracción de hidrocarburos) (the "Guidelines"), the report as follows:
In terms of the Hydrocarbons Law (the "LH"), the assignments of the corporate and/or operative control in Contracts for the Exploration and/or Extraction of Hydrocarbons (the "E&E Contracts") shall be approved by CNH; the purpose of the Guidelines is to establish the requirements and the procedure through which CNH will resolve the requests for the authorization of assignments submitted by Contractors. The following are some of the requirements that shall be complied with in such requests of consent:
Documentation evidencing that the potential assignee has the necessary technical, performance and experience capabilities (solely in case of assigning operations); Documents evidencing the financial capabilities of the potential assignee and origin of the financial resources; Statement under oath in which it is stated that in case that the assignment is authorized, the same will not affect the necessary capabilities for the Contractor to continue conducting the petroleum activities; The potential assignee shall assume jointly and severally, without any conditions, the totality of the liabilities inherent to the E&E Contract; and The transition plan for the management system proposed by the potential assignee and the documentation evidencing the experience to operate such system (solely in case of assigning operations). In order to carry out the evaluation for the acceptance of the assignment request, CNH will verify that the potential assignee evidences the requirements mentioned above, in the light of the \prequalification requirements\ established in the Bidding Guidelines that governed the bidding procedure in which the relevant E&E Contract was awarded.
In case the E&E Contract did not derive from a bid, but from the migration of a Pemex's Entitlement, CNH may use the bidding guidelines of an analog project (i.e. onshore/offshore; production sharing/license modality etc.). If an analog project does not exist, CNH in coordination with...