Texas oil group also claim 100 million US dollars from Pemex in arbitration

Octavio Romero Oropeza, CEO of Pemex. Photo: (El Mañanero Diario)

A group of oil services in the US files the appeal with the World Bank; Mexico faces 13 disputes of this type before ICSID, 10 of which have been introduced as of 2018 (during the Lopez Obrador administration).

MEXICO CITY, (May 19, 2021).- In the United States, an oil services group accused Mexico of failing to honor NAFTA agreements and filed a USD 100 million arbitration in a World Bank tribunal. 

They are headed by Finley Resources Inc which is a Texas oil and gas company, and this is the first claim made by a US oil services body against Mexico since the North American Free Trade Agreement (NAFTA) was renegotiated as the T-MEC in 2020.

They allege that Mexico violated investor protections under the USMCA trade pact. 

On May 12, the International Center for Settlement of Investment Disputes (ICSID) registered the case, led by Finley, which won two competitive service offer processes and negotiated a third drilling contract with Pemex.

“Finley turned to international arbitration after efforts to enforce his contracts stalled in Mexican courts”, said Andrew Melsheimer, a Fort Worth, Texas-based attorney for the company.

Cases before ICSID, which resolves investment disputes, can take years to resolve.

“Mexico promised that Finley’s investments would be protected,” Melsheimer said. 

“Instead, the country’s courts gave “little or no movement” to the dispute, while Mexican oil service companies that made similar claims received more favorable treatment”, he said.

According to Melsheimer, Pemex defaulted on payments for services provided by the companies, while some contracts awarded to them were not respected by Mexico. The group includes Finley, MWS Management Inc, and Prize Permanent Holdings.

Mexico faces 13 arbitration disputes before the ICSID, 10 of which have been filed since 2018, according to the agency’s website.

Source: El Mañanero Diario



Comments

comments

more recommended stories