The General Contracting Provisions for Petróleos Mexicanos and its Subsidiary Productive Enterprises entered into force on June 11, 2015. The Administrative Contracting Provisions on Substantive Productive Activities of Petróleos Mexicanos and its Subsidiaries are repealed. On June 10, 2015 the General Contracting Provisions for Petróleos Mexicanos ("Pemex") and its Subsidiary Productive Enterprises ("SPE") (the "General Provisions" or "DISC") were published in the Federal Official Gazette ("DOF"). Such General Provisions were approved by the Board of Directors of Pemex on November 18, 2014 and entered into force on June 11, 2015. Herein we present a brief summary of such publication.
According to the General Provisions, all contracts executed by Pemex or its SPEs are subject to the new Pemex Law (published in the DOF on August 11, 2014), its Regulations and the General Provisions. The contracts executed between Pemex and a SPE or between SPEs are subject to common civil law. The contracts executed by Pemex' or its SPEs affiliates are subject to the provisions issued to that effect by Pemex' Board of Directors.
Contracts executed by Pemex or its SPEs shall privilege the purposes and objectives of the same these.
As of June 11, 2015 the Administrative Contracting Provisions on Substantive Productive Activities of Petróleos Mexicanos and its Subsidiaries, (commonly referred to as "DAC"), as well as any other provisions that contravene the General Provisions, are repealed. However, these provisions shall continue to apply to contracts of Pemex Subsidiary Entities which have not yet transformed into a SPE.
Contracting procedures initiated according to the old Pemex Law (published in the DOF on November 10, 2008) shall continue to be governed by such law; however, in case no obligations before third parties are outstanding, the project manager may cancel such procedure and apply the General Provisions.
Contracts, agreements and other acts executed by Pemex and its subsidiaries that were valid on the date of entry into force of the General Provisions, shall continue to be governed by the provisions under which they were initiated. Such instruments may be modified to be adjusted to the new Pemex Law, its Regulations and the General Provisions.
Contracting planning, programming and budgeting
According to the General Provisions, the contracting planning, programming and budgeting shall be aligned to Pemex's business plan...