Mexico - 01

Mexico: Legislative Paralysis Over Appointments Sets Troubling Precedent

The week-long Senate crisis over key appointments, with spill-over effects in the Chamber of Deputies, has finally ended. Although it was exacerbated by frenzied news coverage, the root of the dispute was the controversial “fast track” appointment of current Prosecutor General Raul Cervantes to become the new attorney general (see our 5 September Latest Analysis).

Mexico - 02

Mexico: PAN Split Over Cervantes’ “Fast Track” to Attorney General

An open, unprecedented controversy has emerged within Mexico’s right-wing PAN over the election of Ernesto Cordero as president of the Senate’s directive board. This has spilled over into the Chamber of Deputies, which is at risk of paralysis, as no agreement has yet been reached to select the president of its directive board. Accordingly, Congress

Mexico - 04

Mexico: SENER Extends Pemex’s Minimum Work Terms

In Round 0, held in March 2014, the Mexican government awarded Pemex 103 oil blocks, containing much of country’s proved and probable reserves. At the time, then CEO Emilio Lozoya Austin announced very upbeat forecasts and declared that such areas would guarantee Pemex’s viability. Since then, however, amid the global fall in oil prices and

Mexico - 07

Mexico: PRI Expands Candidacy Eligibility, Spurring Dissent

On 13 August, around 10,000 PRI members attended the party’s 22nd National Assembly in Mexico City. Many political analysts viewed the gathering as a success due to the assertive actions of Pena Nieto and PRI National Leader Enrique Ochoa Reza to consolidate their power over the party and its future going into the 2018 elections.

Mexico - 05

Mexico: Pemex’s High Profits Tarnished by Corruption Allegations

On 27 July Pemex submitted its third consecutive quarterly report showing net profits. In the first half of 2017 the company made $6.78bn in profits. This was enormous turnaround from 14 years of losses, including the $8.15bn in losses that Pemex recorded during the first half of 2016. While these new figures are certainly positive,

Mexico - 01

Mexico: Zama-1 Raises Expectations and Political Stakes: Implications for Round 2.4

Zama-1, the first well explored with private capital in the Gulf of Mexico, has exceeded all expectations. In the medium term, Zama-1 will provide Mexico with profits fluctuating between 68.99% and 80%. According to SENER, Zama-1 will ultimately provide about $36bn to the national treasury. Meanwhile, there is great optimism among the consortium operating Zama-1.

Mexico - 02

Mexico: Pemex Clears Hurdles as Energy Reforms Gain Further Support

Pemex is attempting to shake off past corruption allegations and boost its investment appeal. At the Oil and Gas Innovation Forum 2017 (organized by Siemens, Bloomberg and El Financiero) on 6 July in Mexico City, CEO Jose Antonio Gonzalez Anaya emphasized that Pemex had been a victim of Odebrecht’s. He also reiterated that a new

Mexico - 04

Mexico: Optimism for Round 2.2, but Challenges on the Ground Loom

The Mexican government is very optimistic about Round 2.2, which will be held on 12 July, following the splendid results for offshore blocks in Round 2.1 (please see our 23 June Latest Analysis). On 5 July the National Hydrocarbons Commission (CNH) announced that nine companies qualified for the 10 blocks on tender. However, these onshore

Mexico - 07

Mexico: Pemex Pressured Over Layoffs: Political Implications

On 26 June Senator Dolores Padierna, of the leftist Democratic Revolutionary Party (PRD), called for Pemex CEO Jose Antonio Gonzalez Anaya to appear before the Senate and explain why 3,000 of the company’s employees were recently laid off. She once again castigated Mexico’s energy reforms and accused them of being responsible for the layoffs. Dismissing