Xaxamani Energy’s Permit Approval Sparks Debate

CRE granted an oil and gas marketing permit to Xaxamani Energy, a subsidiary of Hokchi Energy focused on hydrocarbon exploration and extraction. This decision comes amid heightened emphasis on the CRE maintaining independence and fostering a competitive environment in Mexico's energy sector, amid President López Obrador’s threats of its dissolution.

Announced during the Ordinary Session of CRE's Governing Body, the permit raises questions about potential discrepancies between Xaxamani Energy's authorized activities and the restrictions outlined in the Hydrocarbons Law. According to the company's notarial documents, its corporate purpose does not include marketing, constituting a legal barrier for companies solely engaged in exploration and extraction. 

The case of Xaxamani Energy pertains specifically to contractual area ASCS-15, contract number CNH-RO3-LO1-AES-CS15/2018, highlighting complexities and contradictions within CRE's regulatory processes. Commissioner Walter Julián Ángel Jiménez emphasized the "legal impossibility" of granting such permits, indicating apparent inconsistencies in the commission's criteria.

While some voices within CRE, such as Commissioner Guadalupe Escalante, have voiced support for the decision, arguing that their observations and concerns will be channeled through appropriate mechanisms as per law, others maintain that the permit constitutes a violation of current legislation and regulatory principles.

CRE's decision could set a precedent for more companies, potentially lacking the required technical capacity, to seek similar permits, potentially opening a Pandora's box in terms of legal compliance and operating standards in the sector.