Mexico in Brief

Mexico in Brief, nuestro boletín electrónico mensual, está a su disposición en esta sección. Nuestro Mexico in Brief resume las noticias de negocios más relevantes en México, así como los principales indicadores económicos. Nuestro archivo está organizado por número de edición y fecha referente. Por favor consúltelo a su conveniencia y refiéranos cualquier comentario escribiéndonos a mexico.in.brief@jatabogados.com.

From Mexico in Brief Newsletter

  • OIL PRODUCTION OPERATIONS STARTING IN THE MEXICAN EAST COAST.

    Argentina-based American Energy, through its Mexican Affiliate Hokchi Energy, has recently started its operations for the production of hydrocarbons in the waters of the Gulf of Mexico, based of its production plant in the State of Tabasco. The startup of operations will be on the welling area of Hokchi-4DEL, which is part of the Satelite Basin. Its investment in this project is expected to reach approximately U.S.$1 billion.

  • CEMEX PLACES NOTES AS IT PREPARES FOR REOPENING.

    Mexican multinational building materials company CEMEX is taking action towards the reopening of its operations, and has raised approximately U.S.$2.5 billion with the purpose of paying debt and strengthening its liquidity. Funding has been mainly sourced from a U.S.$1.5 billion revolving credit line and the placement of debt instruments for approximately U.S.$1 billion with 2027 maturity and an interest rate of 7.375%.

  • OIL COMPANY INVESTS IN MEXICAN DEEP WATERS.

    U.S.-based oil and gas company Murphy Sur has announced an investment of up to approximately U.S.$275 million in the event that it confirms its intended findings of an oil well in deep waters of the Gulf of Mexico, near the coasts of the State of Tabasco. This discovery is part of the Cholula-1EXP welling area and corresponds to the Salina Basin, where Murphy Sur expects to be drilling three additional oil wells within the next three years.

  • WALMART OFFERS MOBILE PHONE SERVICE IN MEXICO.

    Walmex, the Mexican unit of ​ multinational retailer corporation Walmart, launched a mobile phone service in Mexico. The service is called “BAIT”, and will offer prepaid calls and internet service, focusing on expanding the coverage in the rural areas of Mexico.

  • AUTOMOBILE INDUSTRIE​S REOPENING IN MEXICO.

    Fiat Chrysler has reopened its manufacturing activities in two Mexican plants this last month, located in the cities of Toluca and Saltillo; Volkswagen and BMW have also started reopening their operations in Mexico, together with other automobile component industries, such as tires. All operations have adopted new safety and hygiene protocols for their reopening.

  • FEMSA PREPARES AN ADDITIONAL PLACEMENT OF SENIOR NOTES.

    Mexico-based conglomerate Fomento Economico Mexicano, or FEMSA, placed approximately U.S.$500 million and U.S.$300 million of non-guaranteed senior notes in January and February of 2020, respectively, and recently announced an additional tranche of these senior notes, intending to raise approximately U.S.$700 million. The notes will have 30 year maturity.

  • SHELL CONITNUES INVESTING IN OIL DRILLING IN MEXICO.

    British-Dutch oil and gas company Shell has announced that it will be making an investment of approximately U.S.$330 million in its exploration activities in deep waters in Mexico. The exploration is taking place in the Cinturón Plegado Perdido located in the Gulf of Mexico. Additionally the Comisión Nacional de Hidrocarburos (CNH) has authorized Shell to advance the plans for additional drilling, including a prospection which could result in the drilling of up to 42 million barrels of additional crude oil.

  • MEXICAN FEDERAL COURTS SCRUTINIZE NEW POWER SECTOR POLICIES.

    The regulations issued by the Mexican National Center for the Control of Energy or CENACE, the Mexican Ministry of Energy or SENER, and the Mexican Energy Regulatory Commission or CRE and the Mexican Federal Electricity Commission or CFE during the months of April and May of 2020, have come under a strict scrutiny by Mexican Federal Courts, with a wide array of complainants filing constitutional protection lawsuits against such resolutions. Definitive suspensions to both the CENACE and the SENER Resolutions have been granted by Federal Courts and later confirmed by Federal Appeals Courts, which means that these new provisions are stayed until the corresponding proceedings are finally resolved. The challenges against the CRE/CFE resolution, which significantly increased CFE’s transmission tariffs to legacy projects, have resulted in mixed results, with the Federal Courts rejecting the definitive suspension requested by several claimants. Also, the Mexican federal antitrust agency, or COFECE, filed a constitutional challenge against the SENER Resolution under the basis that such regulations block competition in the power sector, and on June 29 the Mexican Supreme Court ordered the suspension of the resolution while it resolves the remedy filed by the agency. To read our key takeaways and implications of these SENER and the CENACE Resolutions, please click here.