Mexico City, October 11 2024
The President Claudia Sheinbaum announced that the Mexican Government will seek private sector participation in energy activities, always under the supervision of the Mexican State.
On October 2nd, 2024, the Constitutional Points Committee of the Chamber of Deputies discussed the bill submitted by former President Andrés Manuel López Obrador in February, 2024, which proposed reforms to Articles 25, 27, and 28 of the Mexican Constitution and added a paragraph to Article 27 in relation to the original text. The addition allows the Mexican State to perform oil and hydrocarbon exploration and extraction activities through assignments with PEMEX or contracts with private entities. Likewise, the reform grants exclusive strategic area status to all activities carried out by state-owned entities in the energy sector.
Regarding the electricity sector, the bill proposes maintaining the percentages established under the previous administration for the country’s electricity generation, which currently allocates 54% to CFE and 46% to private generators, granting CFE priority in energy dispatch.
On October 9th, 2024, the Chamber of Deputies discussed and approved the abovementioned reform. The bill will now follow the legislative procedure and will be sent to the Mexican Senate for discussion and approval. Once approved by the Senate, it must then be approved by two-thirds of the congresses of the Mexican states before it becomes binding and being published in the Mexican Official Gazette.
The lawyers from the Energy and Infrastructure practice at our firm are at your disposal for any questions or comments regarding this matter.
Sincerely,
Juan Carlos Serra
Pablo Nosti Herrera
pnosti@basham.com.mx
Pamela Salas Garcia
Iván Sánchez López
