About

Mexico’s largest company, Petróleos Mexicanos (Pemex), is the Mexican state-owned petroleum company and one of the few companies in the world that develops and operates the entire production chain of the oil and gas industry. Led by chief counsel Jorge Eduardo Kim Villatoro, the Pemex legal team of 700 members is brimming with talent. In a move to attract private capital and technical expertise to build the Mexican energy industry, maximise oil and gas revenue, and boost economic growth, the Mexican government reformed the energy sector ian 2013. In adapting to the change, Pemex has had to incorporate a completely new set of rules to continue participating in the sector. Following the reform, the legal team has centralised to operate as a ‘consolidated operational area with a corporate vision’. Silvia Oropeza’s deep knowledge of Pemex legal framework was critical to implement such new rules. As the reform entitles Pemex to ally with private sector companies in order to carry out exploration and extraction activities, the legal team adapted its structure and functions to create a new legal vice-presidency for Projects and New Businesses in charge of the alliances, new projects and implementation of the energy reform. Cesar Fernandez, head of this new vice-presidency, led on all negotiations and agreements related to the first Pemex alliances in deepwater in the company’s history, the first mutual interest a joint bidding and joint operating agreements that have helped build a partnership with other important international players in the oil and gas industry. An example of these alliances is the Trion farm-out for deepwater operations in the Gulf of Mexico, a strategic project that is expected to start producing hydrocarbons in the short term.~ Additionally, they have been working on the new Integrated Services Contracts (CSIEE), which would allow Pemex to be more cost effective, increase its production and diversify its financial sources and operations. Within the Midstream/Downstream activities, this vice-presidency has participated in a financial strategy for the monetisation of ultra-low sulphur gasoline refining assets through a sale and lease-back scheme, by constructing and developing new infrastructure that will bring an additional refining capacity of 82,500 barrels per day in such assets. Away from the reform, the team has been involved in relevant cases for the sector, eliminating contingencies of approximately MXN$7.5bn payments. ‘These cases represent a landmark for the legal team because we implemented a good defence strategy with the best results for our company’ according to a company spokesman. During these cases Alfonso Guati Rojo’s ‘litigation experience and knowledge about contentious issues’ proved particularly invaluable and ensured Pemex avoided unnecessary disputes and controversies. Another integral member of the team is Fermin Fernandez Guerra Espinal who ‘coordinates with great proficiency all the legal activity of Pemex outside Mexico City, providing all the legal services, regarding legal consultancy and litigation in local jurisdictions’.