Mineral resources including oil and gas are owned by the Mexican government by constitutional law. Because of the government ownership of mineral interests, the energy sector including oil production and gas production is administered by the government with varying degrees of private investment. Mexico is the seventh-largest oil producer in the world. PEMEX is the public energy company that is in charge of administering research, exploration and sales of oil. It is the largest company in Mexico, and the second largest company in Latin America after Brazil's Petrobras.
Because of the Mexican tax system, PEMEX has limited resources to find new sources of oil or upgrade infrastructure. It is estimated that the Mexican federal government takes over 90% of the national oil company PEMEX’s profits for the Mexican federal budget. For this reason PEMEX has been unable to maintain, upgrade, and/or expand its oil and gas production. This failure to maintain and upgrade its oil and gas infrastructure has created declining production causing Mexico to slip from the sixth to the seventh largest producer of oil and gas. It also has raised several environmental concerns with its onshore fields and pipelines as well as its plans to go into deep water drilling. Though PEMEX claims most of its onshore problems are a result of vandalism, failure to properly invest in the Mexican petrochemical infrastructure is causing several issues.
To stabilize production output, the Mexican government and PEMEX are planning to move into deep water drilling to stabilized output after sharp decreases in some of it largest onshore aging fields. It is estimated that there are about 30 billion barrels of oil beneath Mexico territorial Gulf waters, but the trick is to have sufficient investment capital to obtain deep water drilling technology. By adopting new technology and investing in deep water drilling technologies, PEMEX hopes to have some 50 deepwater oil wells operating by 2015 and hopes this will stabilize production for many years. It is yet to be see, what foreign investment will be needed to upgrade the PEMEX infrastructure to allow the necessary deep water production.
It should be interesting to see if PEMEX, like Brazil's Petrobras seeks foreign investment to obtain the capital needed to safely advance its plans for deep water offshore drilling. If so, the competition for these oil infrastructure contracts could be fierce and include bribes of PEMEX officials, bribes of Mexican government officials, and other corrupt practices.
Foreign Corrupt Practices Act Prohibits Bribes of Government Officials and Bounty Actions Allow Whistleblowers to Confidentially Report Violations Through Bounty Action Lawyers and Potentially Claim Large Rewards
The Mexican national oil company, PEMEX, has many of the same characteristics of the Mexican electric company CFE. CFE has been determined to be a foreign government instrumentality in the Lindsey Manufacturing case. This means that PEMEX can probably be considered to be a foreign government instrumentality and will be covered under the FCPA and will be subject to Bounty Actions. The characteristics of foreign government instrumentalities under the FCPA include whether the entity was created as a public entity; does its governing Board consist of high ranking government officials; does the entity describe itself as a government agency; does it perform a function that the Mexican government itself designates as a government function; and is the entity financed through governmental appropriations or through revenues obtained as a result of government-mandated taxes, licenses, fees or royalties.
For more information on the Mexican Economy, Foreign Direct Investments into the Mexican Economy, Mexican Government Official Bribe Bounty Actions, and Foreign Corrupt Practices Act Whistleblower Reward Lawsuits, please feel free to go to the following webpage: Mexico Contract Bribe FCPA Confidential Bounty Actions.
Foreign Corrupt Practices Act Prohibits Bribes of Government Officials and Bounty Actions Allow Whistleblowers to Confidentially Report Violations Through Bounty Action Lawyers and Potentially Claim Large Rewards
The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign officials by U.S. companies and foreign companies listed on the U.S. securities exchange. The Foreign Corrupt Practices Act (FCPA) also requires such companies to maintain accurate books and records. Foreign Corrupt Practices Act Whistleblowers that properly report violations of the Foreign Corrupt Practice Act by a U.S. or foreign companies listed on the U.S. securities exchanges can recover a large reward for exposing Foreign Corrupt Practices Act (FCPA) violations.
The Mexican national oil company, PEMEX, has many of the same characteristics of the Mexican electric company CFE. CFE has been determined to be a foreign government instrumentality in the Lindsey Manufacturing case. This means that PEMEX can probably be considered to be a foreign government instrumentality and will be covered under the FCPA and will be subject to Bounty Actions. The characteristics of foreign government instrumentalities under the FCPA include whether the entity was created as a public entity; does its governing Board consist of high ranking government officials; does the entity describe itself as a government agency; does it perform a function that the Mexican government itself designates as a government function; and is the entity financed through governmental appropriations or through revenues obtained as a result of government-mandated taxes, licenses, fees or royalties.
For more information on the Mexican Economy, Foreign Direct Investments into the Mexican Economy, Mexican Government Official Bribe Bounty Actions, and Foreign Corrupt Practices Act Whistleblower Reward Lawsuits, please feel free to go to the following webpage: Mexico Contract Bribe FCPA Confidential Bounty Actions.
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