2016 Oil & Gas Summit: Round One Analysis
Juan Carlos Zepeda, the President Commissioner of CNH presented Mexico Oil and Gas Review’s final presentation for Day 1. He offers a Round One analysis, aimed at detailing the main achievements and lessons learned during the process.
The Ministry of Energy dictates the laws, and CNH carries them out, according to Zepeda. Administrating and regulating the industry, he describes the commission as the “executive arm” of the industry.
Proudly Transparent
As all the speakers highlighted, Zepeda reiterates how important the success of creating transparency was for the oil and gas industry. His declaration that CNH must meet international standards goes beyond meeting these quality levels, rather exceeding them. The question and answer process with the government, alongside the bases of the bidding process are all available online.
The biddings are opened on camera, he details, and a public notary attests the act in person on the day. No other country is as transparent as Mexico in this aspect.
CNH’s Raison d'être
Zepeda states that the verdicts for each entity involved in biddings must how the technical merit of each project, as well as the operational costs. The commission also publishes its verdicts with regards to prices, to ensure estimations are viable in the market. The President Commissioner reiterates that this is unique in Mexico.
The industry needs gravimetric and seismic information to function optimally, and CNH ensures this is available publicly. This database consists of both new, incoming information as well as the existing information accumulated in one place.
“The more information, the better our understanding of our oil and gas resources.” Zepeda mentions the goal to develop information availability in Mexico.
Geophysical Sites
Since last year, the country handed out 35 permits to study geophysical sites. “We allow companies to suggest interesting areas to investigate.”
He names the primary area of change as being the information industry. The dynamic of biddings in oil and gas have seen US$114 million of investment in investigation. Therefore, both private companies and the state can make better decisions on investigations.
We are proud to be the first country in Latin America to launch rebiddings of operational fields