SDV Insights

Oil and Gas Activities in Mexico Face New Insurance Requirements

Mexico recently issued a new set of minimum insurance requirements for companies engaging in certain oil and natural gas activities including exploration, production, processing, and refining. At a minimum, these companies must procure coverage for civil liability, environmental liability, and well control, where applicable. The guidelines set forth mandatory minimum insured amounts dependent upon the activity, in addition to requiring that the insurance must be issued by insurers qualified in Mexico, must be primary, and must contain a waiver of subrogation in favor of the Mexican government.

The guidelines officially became effective on June 24, 2016 and companies must register compliant policies within 60 days from the date of implementation, or by August 23, 2016. If you are a company who is engaged in these activities or planning to engage in the future, it is important to recognize the reporting requirements and registration rules as well as to ensure that your subcontractors, service providers, and/or suppliers are also in compliance.


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