Page 8 - LatAmOil Week 14 2021

LatAmOil MEXICO LatAmOil

According to previous reports, these conditions plan would allow the government to punish
include threats to national security, energy companies for subjective or even specious rea-
security or the Mexican economy. The proposal sons. However, Nahle told Bloomberg that the
calls for allowing national oil company (NOC) measure aimed to rein in corruption.
Pemex to take control of companies whose The bill “will allow us to cancel permits in
licences are suspended. which illegal acts have been committed, as well
Onexpo, an industry association represent- as gas stations that commit crimes or speculate,”
ing Mexico’s fuel retailers, has expressed con- she wrote in response to a question from the
cern about the possibility that the president’s news agency. ™

USTR report voices concern about US

energy companies’ challenges in Mexico

THE Office of the US Trade Representative oil company (NOC) Pemex to develop a large
(USTR) said in a report published last week that crude oil deposit. (The latter appears to be a ref-
Washington was concerned about the increas- erence to Talos Energy, which has been ordered
ing number of obstacles facing US-based inves- to accept the unitisation of its offshore Zama
tors seeking a foothold in Mexico’s oil and gas field with adjacent sites assigned to Pemex.)
industry. The report also noted Washington’s concerns
In the latest edition of its annual report on about the Mexican government’s decision to
barriers to trade, USTR stated that Washington grant more advantages to state-owned oil, gas
had informed Mexico City of US companies’ and electricity companies within the last year.
complaints about discrimination in the enforce- It pointed to changes in public procurement
ment of regulations, delays in the permitting policy that exempted Pemex and the national
process and lack of notice regarding changes to electric power provider Comision Federal de
the policy and regulatory environment. “The Electricidad (CFE) from certain requirements.
United States has raised concerns with Mex- US companies believe these revisions have made
ico regarding the deteriorating climate for US the procurement process less transparent, it said.
energy investors in Mexico,” it wrote. Mexico’s President Andres Manuel Lopez
USTR also cited a number of examples of Obrador has said he believes that state-owned
the concerns raised by US firms. Some com- companies should dominate the energy indus-
panies have reported experiencing long delays try. He has also instructed his government
when seeking permits or approvals for filling to give Pemex and CFE as much of an edge as
stations, it said, while others have talked about possible within the framework of the country’s
coming under pressure to join with the national current legal regime. ™

Mexico’s president has favoured state-run companies such as Pemex (File Photo)

P8 www. NEWSBASE .com Week 14 08•April•2021