The Latin American Lawyer September 2018 LATAM MAGAZINE SEPT18 | Page 8

News
Doubts about law firms’ future oil and gas
workflow in Mexico
New president López Obrador
opposes attempts to privatise
the oil industry, with reports
suggesting the country’s oil
and gas auctions could be
coming to an end
While investment in the Mexican
oil and gas industry has generated
significant work for lawyers, there
is doubt about future workflow
following the country’s recent
general election, which saw Andrés
Manuel López Obrador elected.
Recent deals included Jones Day
advising private equity fund Enesa
on the sale of Selmec, a Mexican
manufacturer of gas generators to
Generac, which instructed Creel,
Garcia-Cuellar, Aiza & Enriquez.
Iker Arriola, a partner at Creel,
García-Cuéllar, Aiza y Enríquez,
says the oil and gas industry is
among the sectors attracting the
most significant investment, and
this is despite uncertainty caused by
the general election, peso volatility
6
and uncertainty surrounding
NAFTA.
Investors will be watching how
López Obrador, will approach
future energy reform, according
to Daniel del Rio, senior partner at
Basham, Ringe y Correa in Mexico
City. The country’s 2013 energy
reforms opened up vast parts of
the industry to private investment
and this led to $80 billion worth of
financing for oil exploration and
production. Del Rio says: “López
Obrador has been a fierce opponent
of attempts to privatise the oil
industry, but he has said he will
respect existing contracts and the
rule of law.”
Meanwhile, it is anticipated
there will be major investment
opportunities in a range of other
sectors, according to Antonio Peña,
partner at Greenberg Traurig in
Miami, who expects investors to
target under-valued assets in a
number of industries, including
oil and gas. “In the medium
and long term, Lopez Obrador’s
goals of revamping Mexico’s
• THE LATIN AMERICAN LAWYER • September 2018
infrastructure, oil and gas, and
agricultural industries will probably
generate significant opportunities
for investors,” Peña says. Carlos
Dávila Peniche, senior associate
at Baker McKenzie in Mexico
City, anticipates that the election
of López Obrador will lead to
opportunities in the energy and
mining sectors.
However, market observers warn
that Mexico´s incoming government
is considering bringing an end to
oil and gas auctions, which would
effectively close off Mexican oil
and gas reserves to all but those
companies that have already been
awarded concessions.
Antonio Peña, Greenberg Trauring
www.iberianlawyer.com/latin-america