PEMEX / Farm Outs - Energy and Natural Resources - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 742063561

PEMEX / Farm Outs

Author:Mr Juan Carlos Serra, Jorge Eduardo Escobedo Montaño and Jorge Cobos
Profession:Basham, Ringe y Correa, S.C.
 
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As per information released on August 27, 2018, the State-Owned Productive Company, Petroleos Mexicanos ("PEMEX") may, in the coming years, choose directly the partners with whom it would seek to exploit oil fields in partnership, also known as "Farm Outs".

In this regard, Fluvio Ruíz, who could be the next general manager of Pemex Exploration and Production in the administration of the elected President, Andrés Manuel López Obrador, has supported the fact that PEMEX may choose directly its partners and not by means of a tender procedure called by the National Hydrocarbons Commission ("CNH") as currently occurs as per the legal mandate provided in article 13 of the Hydrocarbons Law.

If the above results viable, first, the National Congress would have to modify the referred Hydrocarbons Law as to eliminate the obligation of carrying out a tender as per the procedure referred therein so PEMEX may partner with national and/or international companies in the "Farm Outs".

As of this date, PEMEX has three association agreements to explore the fields known as: (i) Trion, in ultra-deep waters with the company known as BHP Billiton Petróleo Operaciones de México, S. de R.L. de C.V...

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