Upstream Oil and Gas Outlook in Mexico and Practical Guidance for Market Participants Beyond COVID-19

This article discusses what is on the horizon for oil and gas companies in Mexico beyond COVID-19. Low hydrocarbon prices, along with the pandemic effects and the regulatory changes in the Mexican energy sector, may lead to a consolidation of market participants, triggering cross-border M&A activity. While planning for this type of transaction, potential sellers and purchasers should consider—in view of intermittent lockdowns and regulatory changes—new risks related to securing antitrust clearance and negotiating material adverse effect provisions.