National Content Rules and the Contractual Regime in the Oil & Gas Sector in Mexico
In addition to the methodology for measuring local content established by the Ministry of Economy and published last November 13, 2014 (which can be divided into origin of goods and services, labor, training, infrastructure and technology transfer), the Model Contract for Round One sets contractual obligations applicable to contractors which we mention bellow.
Among the premises of the Energy Reform derived from the changes in the Mexican Constitution made on December 2013 is the protection of the domestic market. So-called secondary legislation on energy matters establishes percentages of local content, percentages which are also specified in the bidding process for the award of production sharing contracts for exploration and production of hydrocarbons in shallow waters
(Round One), by way of the Contract for exploration and extraction of hydrocarbons in the form of production sharing (the Model Contract).
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