Comisión Nacional de Hidrocarburos (Mexico)

The Comisión Nacional de Hidrocarburos (CNH or Commission) is a technical, independent body created in 2008 to support the Ministry of Energy in the definition and implementation of Mexico's hydrocarbon policy.[1] Its purpose is to supervise and regulate the exploration and production of hydrocarbons by establishing technical guidelines, designing operational efficiency evaluation mechanisms and rule on exploration and production projects presented by Pemex.

History

On April 8, 2008, the Executive presented a package of reform initiatives that included the proposed installation of a decentralized body of the Ministry of Energy with technical and operational autonomy to aid the state in its role as regulator of the oil industry.

On November 28, 2008, Congress instituted CNH by publishing the "National Hydrocarbons Commission Law" in the Diario Oficial de la Federación.[2] At the same time, the existence of the Commission was acknowledged in the 'Organic Law of the Federal Public Administration' and the Regulatory Law of Constitutional Article 27 in the Petroleum Sector (LR27C).[3]

CNH was formally installed on the 20th of May 2009 via the Presidential appointment of the five Commissioners that form its Governing Body.[4] Shortly afterwards, CNH issued its Rules of Procedure in the Diario Oficial de la Federación on August 28, 2009.

Regulatory approach

The Commission's approach is a hybrid of prescriptive and performance-based systems, with greater weight given to the latter. It is based on a three-tier strategy:[5]

  1. Revision of Pemex's internal standards
  2. Design of specific regulation
  3. Technical assessment of E&P projects

More specifically, Article 3 of the CNH Law establishes that the Commission must promote that Pemex's exploration and production projects are carried out pursuant to the following bases:[2]

In addition, the CNH must also establish an Oil Record that will contain its resolutions and agreements, all opinions, standards and regulations issued among other things.[2]

Organization

The Commission is presided by a Governing Body composed by the President Commissioner and four other Commissioners. The current composition of the Governing Body is:

Regulatory highlights

References

External links

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