Risks in the Offshore Energy Industry in Mexico

The opening of the Mexican energy industry in December 2013 presented both new challenges and opportunities to investors. As in other parts of the world, the Mexican offshore energy industry has been lucrative but not isolated from risks, whether intrinsic to the nature of the work itself, or stemming from contractual or statutory provisions. Prior to the Mexico energy reform, risks associated with exploration of a well were assumed by Pemex as the operator, such as in the Ixtoc 1 case; however, since 2014, all the players in the offshore energy industry are exposed. Moreover, such risks have continued to expand in light of the new statute, regulations and rulings by the Mexican Supreme Court.

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To view the chapter online, click here. The complete ICLG: Shipping Law 2017 guide can be found here.