Investors are concerned about the impact of new Mexican President Andrés Manuel López Obrador on the country's energy reform. (Source: Shutterstock, Hart Energy)
On July 1, 2018, López Obrador won the Mexican presidency and his party obtained a congressional majority—sufficient to enact legislation, but not to amend the Constitution. The new president has made few statements on energy reform.
Andrés Manuel López Obrador’s advisers differ about energy reform: Some say it will remain untouched, while Secretary of Energy Rocio Nehal has called for partial counter-reform. Other voices anticipate amendments that will return Pemex to a semi-regulator role, bypassing the independent agency created in 2013. In light of this, it is relevant to review the legal framework governing investors’ oil development contracts.