ANNOUNCEMENT 29 Mar 2016

In March 2016, the government of Mexico announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 29 Mar 2016 | Removal date: open ended
Still in force

Local sourcing

On 29 March 2016, the government of Mexico in its Official Diary of the Federation (DOF 29.03.2016), stated that oil companies operating in Mexico must rely on national suppliers of goods and services for 3% of the input cost to their deep water oil projects.
 
Furthermore, it was also stated that by 2025, firms operating in Mexico will be obliged to use national suppliers for 8% of their deep water oil projects.
 
DOF 29.03.2016 stated that the introduction (for the first time) of these local content rules is in accordance with the Hydrocarbon Law of Mexico (2014) -- which states that thegovernment needs to set values for local supply usage on deep water oil projects in Mexico for 2015 and 2025. Lastly, DOF 29.03.2016 also makes reference of Article 46 of the Hydrocarbon Law of Mexico which states that thelocal supply content minimums for onshore and shallow water projectstop out at 35 %.
 
 

AFFECTED SECTORS