GT Report - Status of the Mexican Energy Reform

Please find below a brief description of the approval process of the Energy Reform as of July 22, 2014:
 
1. The President of Mexico submitted on April 30, 2014 before the Mexican Congress a total of 21 laws (9 new laws and 12 amendments) in 9 packages.
 
2. The Senate is the Chamber of Origin in charge of approving the following 9 new laws (which are ordered in 4 sections called dictamenes): (i) Hydrocarbons Law, (ii) Electricity Law, (iii) Pemex Law, (iv) CFE Law, (v) Geothermal Law, (vi) CRE Law, (vii) CNH Law, (viii) HSE Agency and (ix) Coordinated Regulatory Agencies in Energy Matters Law, plus certain amendments to some existing laws. 
 
3. The Chamber of Deputies (Camara de Diputados) is the Chamber of Origin of the laws that affect the revenue of Mexico (which are also ordered in 3 sections called dictamenes): (i) Hydrocarbons Revenue Law, (ii) Mexican Petroleum Oil Fund Law and amendments to the General Debt Law, Fiscal Coordination Law, Federal Governmental Fees Law, Budget Law, etc.
 
4. Therefore, the 9 packages submitted by the President have been consolidated in 7 dictamenes (4 in the Senate and 3 in the Chamber of Deputies).
 
Senate
a. Hydrocarbon Law, Foreign Investment Law, Mining Law, P3 Law
b. Electricity Law, National Water Law and Geothermal Law
c. Pemex Law, CFE Law, Law of Government Entities and Procurement Laws
d. Coordinated Regulatory Agencies and HSE Agency Law
 
Chamber of Deputies
a. Hydrocarbons Revenue Law, Federal Governmental Fees Law, and Fiscal Coordination Law.
b. Mexican Petroleum Oil Fund Law.
c. Federal Budget and Fiscal Accountability Law and General Debt Law.

5. The Energy and Legislative Commissions of the Senate approved on July 15,  2014 the 4 dictamenes which include those 9 laws indicated in paragraph 2. above.
 
6. Said Commissions called on July 16, 2014 for an extraordinary session of the Senate for the approval of the 4 dictamenes by the plenary (all members of the 
Senate). The plenary of the Senate approved yesterday, July 21, 2014 the last of the 4 dictamenes.
 
7. The Energy, Budget and Finance Commissions of the Chamber of Deputies are expected to discuss and approve this week the 3 dictamenes which include the 
laws indicated in paragraph 3. above.
 
8. The approved dictamenes from the Senate have been sent to the Commissions of the Chamber of Deputies and yesterday July 21, 2014 they approved the first of the 4 dictamenes; it is expected that early next week the dictamenes will be subject to final approval by the plenary of the Chamber of Deputies.
 
9. Once the 3 dictamenes from the Chamber of Deputies are approved by the plenary, they will be sent to the Senate (Commissions and then the plenary) for final approval.
 
10. After 8 and 9 above take place, all 7 dictamenes will be sent to the President for his signature and will ultimately be published in August in the Federal Official 
Gazette.
 
Please note that the Agreement between the United States and Mexico Concerning 
Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico entered into effect on July 18, 2014. 

*This document was prepared by Nicolás Borda and Pablo Ortiz-Mena.

 

We would like to acknowledge our member, Greenberg Traurig for this relevant information.