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Compliance Risk Management in Mexico: Industry Experts Weigh In

The COVID-19 pandemic has brought about significant changes to the oil and gas industry, with regulators implementing new standards and guidelines. At the Mexico Oil and Gas Summit 2021, experts gathered for a panel discussion on “Regulatory Compliance & Risk Management” to share their insights on how companies can stay productive while mitigating risks.

Industry Insights

According to Benjamin Torres-Barrón, Partner at Baker McKenzie Mexico, the hydrocarbon industry has faced increasingly rigid standards in recent years. Mining companies must find ways to comply with these regulations and address their main risks, not just upstream oil operations but across the entire value chain.

  • Remote inspections techniques have become widely accepted by clients
  • Risk analysis now requires multidisciplinary sessions, which are being conducted remotely using special cameras

Key Challenges

Graciela Alvarez, Chief Executive Officer of NRGI Broker, emphasized the importance of including not only operators but also contractors and subcontractors in regulations. She noted that contractors often perform high-risk work, making it critical for companies to have adequate risk management strategies in place.

  • Companies are struggling to find insurance policies that meet regulatory requirements
  • The modernization process has been necessary but has caused delays and problems

Rodolfo Alfonso Esquivel, Director of Grupo Roales, agreed that having a policy proportional to the work provided by contractors is key to mitigating risks. He also stressed the need for standardized practices and increased technology integration.

  • Integration of new technology for best practices based on staff training as a key trend
  • Mexico’s oil and gas industry faces significant challenges in implementing regulations and laws aimed at protecting people and the environment

Conclusion

Francisco Javier Hoces, Director of International Consultancy of INERCO, emphasized that technological development boosted during the pandemic provides an opportunity to improve operations and avoid future problems. He concluded by noting that Mexico’s oil and gas industry must work towards implementing regulations and laws aimed at protecting people and the environment.

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