The Role of Legal Advice in Mexico’s Shifting Energy Framework

Entering Mexico’s energy and oil and gas sectors is no small feat. From dense and evolving regulations to a complicated interface between the public and private sectors, companies face a daunting legal terrain that demands not just legal expertise but strategic navigation.

Under President Claudia Sheinbaum’s administration, Mexico has witnessed significant changes to its energy and hydrocarbons regulatory framework. While the government has signaled greater openness to public-private collaboration compared to her predecessor Andrés Manuel López Obrador, it has also reaffirmed the central role of state-owned companies, CFE and PEMEX, in maintaining energy sovereignty. Both companies have advanced their own models of mixed contracts, where the state retains substantial equity stakes in projects.

Despite this more inclusive rhetoric, legal uncertainty remains. Mexico approaches what some are calling a “third energy reform.” The potential dissolution of key regulatory bodies like the National Hydrocarbons Commission (CNH) and growing centralization within the Ministry of Energy (SENER) have created fresh uncertainty for energy operators and legal experts alike.

“Right now, we are in a regulatory limbo,” says Beatriz Marcelino, CEO and Founder, Grupo CIITA. “We only have secondary laws, but we are still missing actual regulations, standards, and administrative provisions. Everyone is waiting for clarity, especially as we approach September, when these new regulations are expected.”

The current state of change is not just about legal frameworks, but also about institutional dynamics. As SENER and PEMEX assume more control, and with new mixed public-private contracts on the horizon, Marcelino says companies are trying to determine who exactly will be setting the rules: regulatory bodies or state-owned enterprises awarding the contracts.

Still, there are signs of improvement. “That they are open to hearing us, that they are giving us a seat at the table, is already meaningful,” says Marcelino. “It allows us, as companies, to understand where we stand. That clarity is beginning to emerge, but there is still a lot left to do.”

For legal practitioners like Lilia Alonzo, Founding Partner, Áurea Partners, the evolving sector has brought a shift in the role of legal advisors themselves. “At the beginning of the energy reform, very few people truly understood the electricity market,” she says. “Today, the market is more mature. Lawyers are no longer just interpreters of the law but strategic partners with a deep understanding of both regulation and industry practice.”

Still, Alonzo cautions that upcoming legal reforms could stall the recent progress in regulatory dialogue. “While public consultations have been useful, we will have to see how this next phase affects institutional openness. The intention to bring order is there, but we need to ensure that communication does not break down.”

Meanwhile, in the hydrocarbon space, PEMEX looms large. The NOC’s financial issues remain a key source of uncertainty for investors and contractors alike. “The big question now is: what will PEMEX and the government do to regularize the company’s delicate financial situation?” asks Manuel Cervantes, Partner, MCM Abogados. “Confidence is fundamental, and the government has taken a bit too long to send clear signals.”

Cervantes notes that communication with PEMEX has improved in recent months, particularly as the company prepares to present its vision for new mixed-contract projects. The Ministry of Finance has also acknowledged the funding challenges facing the sector, a necessary first step, he says, toward rebuilding trust.

Behind the scenes, legal advisors are playing an increasingly technical and strategic role. “Obtaining permits today is extremely complex,” says Cervantes. “It requires internal resources, legal guidance, and coordination across the value chain. Companies had to become more sophisticated, and they turned to firms like ours.”

As Mexico prepares to define the next chapter of its energy policy, legal professionals are doing more than advising clients, they are shaping the frameworks that will determine the success or failure of the country’s energy transition.