CNH Meets With ASEA, ANPHI to Enhance Collaboration
The National Hydrocarbon Commission (CNH) met with the Mexican Association of Hydrocarbon Producers (ANPHI) to address regulatory concerns. CNH also joined efforts with the Agency of Security, Energy and the Environment (ASEA).
Agustín Díaz Lastra, President Commissioner, CHN, congratulated ANPHI on its contribution to national oil production, the economy and for strengthening Mexico's oil reserves. Díaz furthermore highlighted CNH's support to the industry.
Raúl Escalante, President, ANPHI, thanked CNH for its openness to dialogue. He acknowledged the regulator's efforts to reinforce communication between organizations and highlighted that efficient and reliable regulation promotes development in the energy industry.
ANPHI comprises private operators of granted contract areas for the oil industry. The organization seeks to attract, adapt and take advantage of the most advanced technologies and knowledge in the industry to maximize oil income and reduce environmental risks.
Likewise, CNH met with ASEA to create a joint agenda and exchange information related to compliance obligations for operators, improving regulation and establishing official CNH-ASEA communication channels.
The agencies noted that sharing information and discussing common concerns is highly beneficial for the regulatory compliance of both organizations, and they emphasized that the topics discussed will serve as the foundation for enhancing collaborative efforts. The regulators also committed to holding regular meetings and following up on developments.
Regulatory concerns stand at the core of the energy dispute between the USMCA partners. The US and Canada accused the government of favoring state-owned oil and energy companies to the detriment of private operations. The Mexican government has deployed different strategies to tackle some of the concerns expressed by its commercial partners. CNH’s meetings occur a few weeks after the Ministry of Economy announced the government is preparing a policy package to address the dispute.
Foreign Direct Investment (FDI) in the oil and gas sector fell by 63% during 1Q22. Moreover, many E&P activities were abandoned in the past year. Although CNH has assured that companies deciding to focus on more profitable areas is a normal process, no further bidding rounds have been granted during this administration toward further exploration.