Mexico Upstream Fiscal and Regulatory Guide
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The administration of President Lopez Obrador is expected to clarify to foreign investors whether it intends to close the door on international investments in the oil and gas sector after in December 2018 it cancelled new licensing rounds until at least 2022. In the meanwhile, Congress has recently modified some articles of the Hydrocarbons Revenue Law reducing Pemex’s profit sharing duty from the current 65% to 58% in 2020 and then to 54% in 2021. Reducing the profit sharing duty may help Pemex to obtain liquidity and fund its obligations currently jeopardized by negative free cash flow and high debt. With no planned licensing rounds, service contracts migrations, and farm-outs, the government is looking to rely on Pemex for upstream development. Pemex offers new integrated service contracts to support development, but it will retain operatorship and contractors will receive a cash fee based on production.
“Mexico Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Mexico’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Mexico’s upstream oil and gas investment climate.
Scope
Overview of current fiscal terms governing upstream oil and gas operations in Mexico
Assessment of the current fiscal regime’s state take and attractiveness to investors
Charts illustrating the regime structure, and legal and institutional frameworks
Detail on legal framework and governing bodies administering the industry
Levels of upfront payments and taxation applicable to oil and gas production
Information on application of fiscal and regulatory terms to specific licenses
Outlook on future of fiscal and regulatory terms in Mexico
Reasons to Buy
Understand the complex regulations and contractual requirements applicable to Mexico’s upstream oil and gas sector
Evaluate factors determining profit levels in the industry
Identify potential regulatory issues facing investors in the country’s upstream sector
Utilize considered insight on future trends to inform decision-making
Table of Contents
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