Haynes and Boone, LLP Partners Larry Pascal and Nicolas Borda were featured in a Latin America Energy Advisor Q&A about recently inaugurated Mexican President Andrés Manuel López Obrador and how they expect he will impact the energy sector.
Q: In his inauguration speech on Dec. 1, Mexican President Andrés Manuel López Obrador vowed to end the previous government’s “neoliberal policies,” including the energy reform he said has “only meant a drop in oil production and a rise in gasoline prices.” His government has suspended oil auctions until 2021 and an electricity tender planned for this month. What are López Obrador’s priorities for Mexico’s energy sector? Are big changes in store, and how will they affect international investment? What is the outlook for the country’s oil and gas production in the years ahead?
A: Larry B. Pascal and Nicolás Borda, partners at Haynes and Boone: “Mexican President Andrés Manuel López Obrador has vowed to change the country’s energy policy during his mandate. Although much of his policy or coalition members remains to be defined in more detail, the direction of his policy is becoming more evident. Mexico will look to decrease energy dependence from the United States by importing less fuel, adding crude processing capacity between 300,000 and 600,000 barrels of oil per day (bpd) and upgrading existing refineries, and building a new refinery in Dos Bocas, in Tabasco State. Some energy infrastructure projects and auctions will also be delayed, including the construction of new power transmission lines (in Oaxaca and Baja), National Hydrocarbons Commission (CNH) upstream auctions and the long-term power auction by Cenace. …
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