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Documento sin título

Mexican National Hydrocarbons Commission (CNH)


BACKGROUND

In order to meet the great challenges of hydrocarbons exploration and extraction industry, and to ensure the country’s medium and long term energy security, on April 8 , 2008, the Federal Government introduced a package of reform initiatives and proposals for the creation of several dispositions concerning the oil sector. A proposal for the creation of a descentralized agency from the Ministry of Energy provided with technical and operational autonomy and acting as a necessary support to strengthen the State as the highest and only authority in the oil industry lied within this package.

In this regard, on November 28 of that year, the National Hydrocarbons Commission Law was published in the Official Federal Gazette, by virtue of which the Congress established the CNH. Similarly, the CNH’s existence and powers were acknowledged in different arrangements such as the Organic Law of Federal Public Administration and the Regulatory Law of Constitutional Article 27 in the Petroleum Sector.

So it was that CNH was formally installed on May 20, 2009 by means of the presidential appointment of five commissioners, members of its governing body, conformed by MSc. Juan Carlos Zepeda Molina as President Commissioner and as commissioners PhD. Edgar René Rangel Germán, MSc. Javier Humberto Estrada Estrada, Ph. Guillermo Cruz Domínguez and MSc. Eduardo Alfredo Guzmán Baldizán*.

Due to this new institutional arrangement, the Federal Government, through CNH, has an agency with technical autonomy to regulate and supervise the exploration and exploitation of the Nation’s hydrocarbons.

OBJECT

The National Hydrocarbons Commission’s fundamental object is to regulate and supervise the exploration and extraction of hydrocarbons, in beds or reservoirs, whatever their physical state, including their intermediate states, and that are components of crude mineral oil, are associated with it or result from it, as well as processing activities, transportation and storage directly related to hydrocarbon exploration and production projects.

To achieve its goal, the National Hydrocarbons Commission shall carry out its duties, ensuring that the exploration and exploitation projects of Petroeos Mexicanos and its subsidiary companies are performed pursuant to the following bases:

  • Increase the recovery factor and obtain the maximum volume of crude oil and natural gas in the long term, in economically viable conditions for wells, fields and abandoned reservoirs, or in process of abandonment or exploitation.
  • The replacement of hydrocarbon reserves, as guarantee of the Nation’s energy security and according to prospective resources, based on available technology and in-line with the economic viability of projects.
  • The use of appropriate technology for exploration and extraction of hydrocarbons, in terms of production and economic results.
  • Environmental protection and sustainability of natural resources during hydrocarbon exploration and exploitation.
  • Conduct exploration and extraction of hydrocarbons taking care of necessary conditions for industrial safety.
  • Minimizing flaring and venting of gas and hydrocarbons during their extraction.

*His legal appointment concluded on May 15, 2010


APLICACIONES
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