Interview with CNH Commissioner Héctor Moreira Rodríguez

Ahead of Mexican Upstream Forum, Energy Dialogues LLC is running a Speaker Q&A Series to bring first-hand content from our speakers to our network. Energy Dialogues interviewed CNH Commissioner, Héctor Moreira Rodríguez. Please read interview below:

Q: How do you reflect on Round 1 and what are the learnings and experiences you see as most valuable?

A: I think Round 1 has been very successful, but it was also a learning experience. You compile the different between 1.1 and 1.4, you can see that the interest was higher, everything was smoother, and the number of offers that came forward were much better, as you probably saw from 1.1, 1.2, 1.3, and 1.4. Also – I think we learned what to ask and what not to ask. For instance, at the beginning we wanted experience at the company level, but if you demand experience at the company level – no company in Mexico would qualify. So we have to say – you have to have experience, even if it is at the personnel level…that you have to have enough people that have done that before, and then you qualify. Not that the company itself has done some exploration or production process.

Q: What are your expectations for Round 2?

A: Well, Round 2 has more, but smaller areas that are going to be offered. One of the most important developments in Round 2 is that we are moving forward for nominations – which means some areas are offered, but companies can also say “I want that area to be included. It doesn’t mean they take the area, it only means that the area has interest and it is going to be offered and they have to compete with other companies, but companies now have a say in which areas are coming forward to be tendered.

Q: What do you see as the key focus areas to be addressed in order to ensure the Mexican Energy Reform will be a drive for economic growth in Mexico?

A: We have to make sure that more Mexican companies participate. We need to build a petroleum industry in Mexico, but we also need to look to the other side, which is what is called the territory rights. What do you get if there is oil under a piece of land? According to the law, you are entitled to a percentage of the profits, you are entitled to rent for the area that was used by the company etc. – but we need to make sure that those deals between the owner of the land, and the owner of the oil contracts are processed and agreed to faster.

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