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Using our new Asset Risk Index Service, we identify the risks affecting oil and gas field development in Mexico and Argentina

In Latin America, the last decade has been defined by the nationalisation of resources with heavy state intervention and the return of the National Oil Companies (NOCs).

However, we are now seeing a shift towards foreign investment within the oil and gas industry with the region's two most strident resource nationalists – Mexico and Argentina –introducing reform and incentives in a bid to maximise value.     

This ebb and flow in the regulatory environment continues to evolve, as governments seek a fine balance in incentivising investment while best capturing the upside.

Governments are recognising the need for more foreign investment due to escalating technical and capital requirements in their domestic oil and gas sectors. In parallel, declining hydrocarbon output is placing fiscal accounts under pressure with falling oil rents, and fuel import bills are rising and threatening trade balances. 

In light of this, we use our new Asset Risk Index Service to identify the specific risks that affect oil and gas field development in both countries.