[EXCLUSIVE] National Content: The Next Steps In A Mexican Energy Revolution
Local content can be understood as the requirement for a defined percentage of the manpower and materiel employed in a capital project to be sourced indigenously, fostering the development of the local skills base.
In Mexico, PetrôleosMexicanosS.A., commonly known as Pemex, has been Mexico’s one and only hydrocarbons producer for close to 80 years. Production has been in terminal decline since 2004, with the giant Cantarellfield falling from froman output level of 2.1 million barrels per day (bpd) to barely 340,000 bpd now.
In a bid to rejuvenate the country’s hydrocarbon sector, on December 21, 2013, Mexico’s passed a sweeping and historic energy reform bill into law, with the rollout of a raft of energy reform legislation the following August. Local content was high on the agenda and is still hotly disputed now.
With a view to finding out more about what the shakeup in Mexican energy circles is looking like from the inside, we spoke with Jorge Luis LavalleMaury, Senator for Campeche and a member of Mexico’s National Action Party (PAN), about the next steps and stumbling blocks to avoid for this developing New World economy.