About

Number of years practice:
30

Principal practice areas:
Corporate, M&A, Joint Ventures, Business Transactions

Bar admissions:
Texas, Mexico

Languages spoken:
English, Spanish

What differentiates your Mexico-facing practice from those of your US competitors and peers?
My Mexican/US upbringing, knowledge of Mexican and US laws, and international experience, particularly in energy-related matters. As you know, Mexico’s energy industry is incipient and growing. The host government is still learning, and though recently the new administration has hesitated in terms of what it believes the government’s role in the market is, creating uncertainty, players adjust. In the 2000s Ecuador had many international players in its oil and gas space (Oxy, Eni, Petrobras, Kerr-McGee, Pérez Companc, Reposl to name a few) and crude production broke records, benefiting both the country and private parties in many ways. In 2007, the new Correa administration restructured the industry to increase revenues as a result of high crude prices, and mandated through an amended hydrocarbons law the conversion of all licenses and production-sharing contracts into service contracts. This action increased momentarily the country’s oil and gas revenues but stripped away the E&P contractor’s interest in and to production and any incentive thereafter to remain a player in the Ecuadorean restructured E&P setting. Service companies and some NOCs with interests other than in reserves remained, but the most important players left the country and to date have not returned. Venezuela is a very recent example of unreasonable government action that is adverse to the long-term best interests of an industry. Other countries, despite their significant efforts to further develop their energy resources, have been to a degree unsuccessful because of environmental concerns within the country, corruption or political instability, among other factors. I’ve worked in all such countries, and have a unique legal and cultural perspective to share with my US and Mexican clients at any point in time during the life cycle of a project, including country entry and exit.

What are the advantages and disadvantages of advising Mexico-based clients from an office in the United States?
Perhaps, with respect to work that is inbound to the US, not having an office where the client in Mexico is specifically located. Distances are so close now due to technology that I do not see any major disadvantage. Both clients and service providers are a flight away from shaking hands, or a teleconference away from reviewing or revising a document.

What changes in the commercial and/or legal market do you anticipate in the 12 months ahead in Mexico?
There is indeed uncertainty in Mexico for both domestic and foreign investors. The government has taken clear actions at restoring its role as the national economy steersman; one lost through the industry-wide liberalizations of Presidents Carlos Salinas de Gortari and Enrique Peña Nieto. The problem: the government has no money to take the lead it desires and the much-needed austerity measures it has taken to date will only help jump-start the steering plan. Some energy projects have stalled due to the renegotiations of agreements between private parties and the host government. In the oil and gas space, however, the regulator has continued to approve exploration and other upstream programs, which is a good omen, but the curtailment of further auctions of oil and gas blocks will set the development of oil and gas reserves back at least for the curtailment period plus any new exploration and development periods set forth in any new E&P contracts. In the electricity space, the long-term auctions have been suspended, casting doubts as to whether the government will be able to meet its self-imposed renewable energy generation goals. Just recently, the government also suspended the grant of any new mining concessions. These measures show a significant distrust of private capital at a time when it is needed to boost GDP. I believe the government will continue to seek ways in which it can consolidate itself in the desired position, and while it does, private capital will largely stay on the side-lines taking a wait-and-see approach.

What influence will legal technology have on US/Mexico working practices in the future?
The use of technology and software should make us increasingly efficient in the provision of legal services. Face-to-face dealings and negotiations will never be replaced, and thus, air travel will only be displaced to the extent that technology is able to better facilitate human interaction at a more granular level.

What is your perception of in-house counsel’s priorities in terms of client service when working with US-based law firms?
Quality of work, experience and personal attention are first in my mind, and competitive rates are a close second in a world of expanded offerings and competition. Market-based rates within the target country for local-law issues within an international deal setting will always be welcomed, even for US-based law firms with stellar track records and great reputations.