Oil opening experiences in other countries

Several countries have experienced oil openings for years and their experience might be useful for our country regarding the type of problems they have faced and how they were solved.

In our country, the Energy Reform is young and although its development has been relatively fast and constant compared to other countries, it is important to consider that there will eventually be controversies, either between authorities and contractors, between different contractors or between contractors and its partners.

Recall that what underpins the relationship between these actors is a contract, which according to its legal definition is a will agreement, i.e. both parties accept the terms and conditions. But there are no perfect contracts and this means that in practice there will be differences of interpretation or disagreements regarding new rules.

Especially when it reaches the stage of production where each of the parties will seek to ensure a more determined by their interests.

Disputes between authorities and contractors are generally few, but they earn importance in the media. In countries such as Ecuador, Argentina and Brazil, the most common differences refer to unilateral changes in the contract, price control or lack of timely attention to procedures by the authority.

Regarding disputes between contractors, the most common reason is because they have shared deposits, where there may be a lack of certainty between the rights and obligations of each of the contractors.

Among partners, disputes will usually be because some of them decide to abandon their participation in the field.

The Mexican legislator has to consider the existence of possible conflicts, because of this, the Hydrocarbons Law establishes that the resolution of disputes or arbitration that are signed with national or foreign companies, will be subject to Mexican laws, which is an element of certainty for the authorities and companies, especially for national ones.

At NRGI Broker, we are experts in the hydrocarbon sector and we have strategic allies willing to advise you on the development of oil activities. Come to us, we will gladly assist you.