On October 3, 2025, the Decree was published in the Official Gazette of the Federation by which the following were issued: (i) the Regulation of the Hydrocarbons Sector Law (“Hydrocarbons Sector Regulation”); (ii) the Regulation of the Biofuels Law (“Biofuels Regulation”); (iii) the Regulation of the Energy Planning and Transition Law (“Planning Regulation”).
On October 3, 2025, the Decree was published in the Official Gazette of the Federation by which the following were issued: (i) the Regulation of the Hydrocarbons Sector Law (“Hydrocarbons Sector Regulation”); (ii) the Regulation of the Biofuels Law (“Biofuels Regulation”); (iii) the Regulation of the Energy Planning and Transition Law (“Planning Regulation”, together with the Hydrocarbons Sector Regulation and the Biofuels Regulation, the “Regulations”). Below is an executive summary of the Regulations on hydrocarbons, highlighting the most relevant points:
A. Hydrocarbons Sector Regulation.
The Hydrocarbons Sector Regulation aims to further detail the provisions of the Hydrocarbons Sector Law (“HSL”), with the purpose of granting a specific benefit to Petróleos Mexicanos (“PEMEX”) in activities related to hydrocarbons. Regarding the participation of private entities, the Hydrocarbons Sector Regulation reiterates the provisions of the HSL and introduces new schemes that allow their involvement, while prioritizing PEMEX’s activities. The most relevant modifications provided in the Hydrocarbons Sector Regulation are detailed below:
• Surface Recognition and Exploration Activities. Previously, surface recognition and exploration activities required authorization from the former Energy Regulatory Commission (“CRE”); now, the Hydrocarbons Sector Regulation provides that the Ministry of Energy (“SENER”) will be responsible for issuing the corresponding authorizations.
• Self-Development Assignments (PEMEX)
◦ Granting of Assignments in Favor of PEMEX. The Hydrocarbons Sector Regulation establishes that the granting of assignments in favor of PEMEX for the exploration and extraction of hydrocarbons may be carried out through: (i) a direct request from PEMEX to SENER or (ii) when SENER directly grants an Assignment to PEMEX.
◦ Self-Development Assignment Title. The Self-Development Assignment Title must include: (i) a description of the exploration and extraction activities; (ii) the technical and operational terms of the Assignment; (iii) the conditions for substitution to a Mixed Development Assignment; (iv) minimum national content percentage; and (v) other terms established by SENER.
1. Article 5, Section VI of the HSL: Assignment: An administrative legal act through which the Ministry of Energy grants Petróleos Mexicanos the right to carry out Hydrocarbon Exploration and Extraction activities in the Assignment Area, for a specific duration, classified as Self-Development Assignment or Mixed Development Assignment.
2. Article 5, Section VIII of the HSL: Self-Development Assignment: An administrative legal act through which the Ministry of Energy exclusively grants Petróleos Mexicanos the right to carry out Hydrocarbon Exploration and Extraction activities in the Assignment Area, for a specific duration, using its own capabilities.
3. Article 5, Section VII of the HSL: Mixed Development Assignment: An administrative legal act through which the Ministry of Energy exclusively grants Petróleos Mexicanos the right to carry out Hydrocarbon Exploration and Extraction activities in the Assignment Area, for a specific duration, where Petróleos Mexicanos complements its technical, operational, financial, or execution capabilities with the support of Participants.
◦ Assignment Modification. SENER has the authority to modify the Self-Development Assignment Title to (i) expand, reduce, or modify the Assignment Areas; (ii) modify the technical and operational terms; (iii) modify the minimum work commitments; and (iv) any other provisions outlined in the corresponding Assignment Title.
◦ Substitution to Mixed Development. The Hydrocarbons Sector Regulation provides for the possibility of substituting Self-Development Assignments with Mixed Development Assignments. This substitution must be requested by PEMEX to SENER, which must issue the corresponding resolution.
• Mixed Development Assignments.
◦ Private Sector Participation. The Mixed Development scheme, as established in the HSL, allows State-Owned Companies and the private sector to jointly participate in certain Assignments to carry out Hydrocarbon Exploration and Extraction activities.
◦ Mixed Development Assignment Resolution. Once SENER receives the request for a Mixed Development Assignment from PEMEX, SENER must issue a resolution within 90 business days, which must include: (i) identification of the Assignment, surface area, and depth; (ii) elements to justify the need for technical, operational, execution, financial, or experience complementarity and to determine its benefits and expected results from granting the Mixed Development Assignment; (iii) technical and operational terms; (iv) identification of prospective resources and hydrocarbon potential; (v) the capacity that needs to be complemented; and (vi) any other elements PEMEX deems necessary.
◦ Mixed Development Assignment Operator. Both PEMEX and the Participant (private sector) in the Mixed Development Assignment may act as the petroleum operator of the Assignment.
◦ Participation Interest. Participants in the Mixed Development Assignment, as well as Participants in the Mixed Contract, may, according to their participation interest, report the expected benefits of said Mixed Contract for accounting and financial purposes, provided it is expressly established in the Assignment or Contract that the hydrocarbons in the subsoil are the property of the Mexican State.
◦ Modification. Exceptionally, SENER may modify the Mixed Development Assignment Title, ex officio.
