Zero CNH Discretionality: The counter-arguments

Zero CNH Discretionality: The counter-arguments

Round 1 - Market 075MARKET COMMENT 075 (HOUSTON) — A week before the CNH auction scheduled for July 15 for awarding blocks for 14 shallow-water fields, Energy Secretary Pedro Joaquín accompanied by other senior officials briefed the press on what to expect during the day. Emphasis was given to the transparency of the process, evidenced by a policy of “cero discretionality” and by the participation of multiple government agencies, as if to suggest that a system of checks and balances was in place. This report sets forward counter-arguments that support giving the Hydrocarbon Commission (CNH) discretionality in determining the best offer in each case. A summary of the arguments was published in a column in MILENIO (La Energía de Baker), July 21-22, 2015.

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Written by

George Baker

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.

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