IN BRIEF: Congress approves modifications to Mexico's hydrocarbons law

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Wednesday, October 19, 2016

Mexico's lower house of congress has voted 360 to 53 in favor of proposed changes to the hydrocarbons revenues law that aim to make the rules governing deductions relating to oil and gas production more flexible. The bill will now be passed to the senate for voting.

The hydrocarbons law was part of Mexico's 2014 energy reform, and redefined the way the government receives revenues as state oil firm Pemex loses its production monopoly. The government proposed the modifications to the law in September.

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The modifications aim to adjust deduction limits on hydrocarbon extraction in onshore and shallow water fields at depth of up to 500m in order to provide financial certainty to state-owned firms.