Hydrocarbons
Upstream
Institutional Arrangement
The Ministry of Energy is the Federal Government entity responsible for controlling, managing and regulating Mexico’s energy resources, and establishing the national energy policy.
The Ministry of Energy with the commitment of other 22 private and public entities had developed the “Government and Companies Integrity in the Energy Sector” which addresses the need to harmonize information and government efforts to facilitate the development of investment in the energy sector. It also generates, discloses and encourages the exchange of verified information with a business approach, which sets the ground for a relationship of greater integrity between the Government and companies from the energy sector.
To encourage the achievement of the objectives set in the National Development Plan, this unit establishes strategies and programs, and evaluates their impact within the framework of the Democratic National Planning System and the sectorial programs.
The Mexican Petroleum Institute is a decentralized public entity that operates as a public research and development center for the oil, petrochemical and chemical industries. Additionally, the IMP provides specialized training services.
The Ministry of Finance is the Federal Government entity responsible for preparing, implementing, and controlling Mexico’s economic policy, related to financial, fiscal, expenditure, revenue, and public debt matters, to consolidate the country’s sustainable economic growth.
The Mexican Oil Fund for Stabilization and Development is a Public trust managed by Banco de México (central bank), aligned with the Ministry of Finance. This fund receives, administrates, and distributes the revenues, except taxes, that the Federal Government collects from oil and gas exploration and extraction. Additionally, the fund determines the amounts to be paid under existing exploration and extraction contracts, transfers the funds, and invests the remaining resources
The Security, Energy and Environment Agency is a decentralized public entity (from SEMARNAT), with technical and managerial autonomy, responsible for regulating and supervising industrial and operational safety, as well as the protection of the environment in hydrocarbon related activities.
The National Hydrocarbons Commission is a regulatory entity with technical autonomy, responsible for the organization of tenders, and execution of contracts related to the exploration and extraction of hydrocarbons. The CNH is responsible for the technical surveillance of these contracts, and of any activity associated to the exploration and extraction of hydrocarbons. On a regular basis the CNH generates information of Mexican subsoil.
It has an additional site, which offers technical information generated throughout the history of the industry in Mexico.
PEMEX is a state owned productive company that participates in all the activities that are part of the productive chain of hydrocarbons, including exploration, production, industrial transformation, logistics, and commercialization of hydrocarbons and derived products. PEMEX is wholly owned by the Federal Government, and has legal personality, own equity, and technical, operational and managerial autonomy.
Productive Subsidiary Company of PEMEX responsible for the exploration and extraction of hydrocarbons in national territory, exclusive economic areas, and in international waters.
Productive Subsidiary Company of PEMEX that provides drilling services, maintenance and service to oil wells under the highest quality, efficiency, safety and environmental standards.
Productive Subsidiary Company of PEMEX that generates, supplies, and distributes electric and thermal power, as well as technical and managerial assistance related to such activities.
Investment Cycle
Planning
SENER prepares short, medium and long term sectorial programs according to the guidelines, objectives, and strategies included in the Energy Reform and the Five-year Hydrocarbons Exploration and Extraction Tenders Program 2015 – 2019.
Identification
SENER, CNH, and PEMEX identify exploration and extraction projects to be executed, based on planning documents.
Structuring
SENER and CNH, with the technical assistance of PEMEX Exploración y Producción, prepare, by themselves or by means of third parties, the necessary pre-investment studies and analysis, required for the development of exploration and extraction projects.
Registration
Starting in 2016, the projects developed by PEMEX do not longer require the registration in the Investment Unit of the Ministry of Finance.
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Prioritization
Projects requiring federal funds shall be analyzed by SENER, based on technical recommendations issued by the PEMEX and CNH. The latter determines the inclusion of the projects in the annual government budget.
Authorization
Both SENER and CNH have the power to issue and cancel permits related to exploration and extraction activities.
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Promotion
SENER and CNH are responsible for the promotion of the projects.
Bidding
The bidding process is responsibility of CNH, according to the technical guidelines established by SENER and the economic / fiscal conditions determined by the Ministry of Finance. The terms of reference of any tender area available at CNH website.
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Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds from development banks, commercial banks, institutional and private developers, and from institutional investors.
Execution and Operation
Carried out by PEMEX, and/or awarded operators and/or developers, under the surveillance of SENER and CNH according to contract terms.
Midstream
Institutional Arrangement
The Ministry of Energy is the Federal Government entity responsible for controlling, managing and regulating Mexico’s energy resources, and establishing the national energy policy.
The Ministry of Energy with the commitment of other 22 private and public entities had developed the “Government and Companies Integrity in the Energy Sector” which addresses the need to harmonize information and government efforts to facilitate the development of investment in the energy sector. It also generates, discloses and encourages the exchange of verified information with a business approach, which sets the ground for a relationship of greater integrity between the Government and companies from the energy sector.
To encourage the achievement of the objectives set in the National Development Plan, this unit establishes strategies and programs, and evaluates their impact within the framework of the Democratic National Planning System and the sectorial programs.
The Mexican Petroleum Institute is a decentralized public entity that operates as a public research and development center for the oil, petrochemical and chemical industries. Additionally, the IMP provides specialized training services.
The Security, energy and Environment Agency is a decentralized public entity (from SEMARNAT), with technical and managerial autonomy, responsible for regulating and supervising industrial and operational safety, as well as the protection of the environment in hydrocarbon related activities.
The Energy Regulatory Commission in an independent regulatory entity that fosters the efficient growth of the sector, as well as of a reliable power supply. Its mission is to regulate the activities of the power industry in a transparent, impartial, and efficient manner, in order to generate the required certainty that encourages productive investment, promotes healthy competition, and generates an adequate coverage of services.
The National Center for Natural Gas Control is a decentralized public entity that guarantees a reliable, efficient and safe supply of natural gas along the country. CENAGAS operates as a technical manager of the Integrated Natural Gas Transport and Storage System, and storage of natural gas, as well as an efficient natural gas carrier.
PEMEX is a state owned productive company that participates in all the activities that are part of the productive chain of hydrocarbons, including exploration, production, industrial transformation, logistics, and commercialization of hydrocarbons and derived products. PEMEX is wholly owned by the Federal Government, and has legal personality, own equity, and technical, operational and managerial autonomy.
Productive Subsidiary Company of PEMEX that provides transport and storage services for hydrocarbons, oil, petrochemicals and other related services, as well as commercialization of its capacity for storage and handling purposes. It manages projects planning, evaluation and execution, and other business initiatives related to its charter.
The Federal Electricity Commission is a state owned productive company involved in power generation, transmission, distribution, commercialization and supply activities. CFE is wholly owned by the Federal Government, and has legal personality, own equity, and technical, operative and managerial autonomy. It is also a majority participant in the transportation of gas.
Investment Cycle
Planning
SENER prepares short, medium and long term sectorial programs according to the guidelines, objectives, and strategies included in the Energy Reform and Energy Sectorial Program (PROSENER) for the development of energy resources in the country.
Identification
SENER, CENAGAS, and PEMEX identify logistic related projects to be executed, based on planning documents.
Structuring
SENER and CRE with the technical assistance of PEMEX Logística, prepare, by themselves or by means of third parties, the necessary pre-investment studies and analysis, required for the development of logistic projects.
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Registration
Starting in 2016, the projects developed by PEMEX do not longer require the registration in the Investment Unit of the Ministry of Finance.
Prioritization
Projects requiring federal funds shall be analyzed by SENER, based on technical recommendations issued by the CRE and CENAGAS. CRE and CENAGAS determine the inclusion of the projects in the annual government budget
Authorization
CRE has the power to issue and cancel permits related to storage, transport, and distribution of oil, natural gas and oil derived products, including ethane, propane, butane and naphtha that are carried through pipelines.
Promotion
SENER and CENAGAS are responsible for the promotion of the projects.
Bidding
The bidding process is responsibility of CRE and CENAGAS, according to the technical guidelines established by SENER.
Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds from development banks, commercial banks, institutional and private developers, and from institutional investors.
Execution and Operation
Carried out by PEMEX, and/or awarded operators and/or developers, under the surveillance of SENER and CNH according to contract terms.
.
Downstream
Institutional Arrangement
The Ministry of Energy is the Federal Government entity responsible for controlling, managing and regulating Mexico’s energy resources, and establishing the national energy policy.
The Ministry of Energy with the commitment of other 22 private and public entities had developed the “Government and Companies Integrity in the Energy Sector” which addresses the need to harmonize information and government efforts to facilitate the development of investment in the energy sector. It also generates, discloses and encourages the exchange of verified information with a business approach, which sets the ground for a relationship of greater integrity between the Government and companies from the energy sector.
To encourage the achievement of the objectives set in the National Development Plan, this unit establishes strategies and programs, and evaluates their impact within the framework of the Democratic National Planning System and the sectorial programs.
The Mexican Petroleum Institute is a decentralized public entity that operates as a public research and development center for the oil, petrochemical and chemical industries. Additionally, the IMP provides specialized training services.
PEMEX is a state owned productive company that participates in all the activities that are part of the productive chain of hydrocarbons, including exploration, production, industrial transformation, logistics, and commercialization of hydrocarbons and derived products. PEMEX is wholly owned by the Federal Government, and has legal personality, own equity, and technical, operational and managerial autonomy.
Productive Subsidiary Company of PEMEX that refines, processes, and trades hydrocarbons, petroleum, natural gas and petrochemicals.
Productive Subsidiary Company of PEMEX responsible for the production, distribution and marketing of ammonia, urea, fertilizers, and their derived products.
Productive Subsidiary Company of PEMEX that manufactures and distributes methane, ethane and propylene derived products.
Investment Cycle
Planning
SENER prepares short, medium and long term sectorial programs according to the guidelines, objectives, and strategies included in the Energy Reform and Energy Sectorial Program (PROSENER) for the development of energy resources in the country.
Identification
SENER and PEMEX identify industrial transformation projects to be executed, based on planning documents.
Structuring
SENER, with the technical assistance of PEMEX, prepares, by itself or by means of third parties, the necessary pre-investment studies and analysis, required for the development of industrial transformation projects.
Registration
Starting in 2016, the projects developed by PEMEX do not longer require the registration in the Investment Unit of the Ministry of Finance.
Prioritization
Projects requiring federal funds shall be analyzed by SENER, based on technical recommendations issued by PEMEX, who determines the inclusion of the projects in the annual government budget.
Authorization
SENER has the power to issue and cancel permits related to industrial transformation of hydrocarbons.
Promotion
SENER is responsible for the promotion of the projects.
Bidding
Not applicable. Private investors are the only actors involved in industrial transformation.
Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds from development banks, commercial banks, institutional and private developers, and from institutional investors.
Execution and Operation
Carried out by PEMEX, and/or awarded operators and/or developers, under the surveillance of SENER according to contract terms.