Insurance requirements in the Mexican oil and gas industry The Field In this article, Enrique Garza of Garza Tello & Associates and Lewis McDonald of Skuld outline the new insurance regulations recently introduced in Mexico and how they affect insurance requirements in the country. Mexico is one of the largest oil producers in the world and the offshore industry is crucial to the country's economy. Many of our assureds operate in the region and, as with every region, offshore Mexico offers its own unique challenges. Last year, new regulations were introduced by Mexico's National Agency for Industrial Safety and Environmental Protection in the Oil Industry (ASEA) which set out minimum limits for many insurances, including P&I cover. The limits introduced by these new regulations could have an effect on our assureds, particularly for those under the MOU P&I programme where fixed insurance limits are purchased. With the traditional P&I insurance renewal season approaching, for those operating in Mexico, and those potentially considering operations there, it is worth looking at what these new limits are and to consider what that means in relation to the insurance covers you have in place. During 2016, new insurance rules came into play for those operating in the oil and gas industry offshore Mexico. On 23 June 2016, ASEA issued new regulations which establish a minimum insurance requirement for companies directly performing activities or construction works relating to oil exploration and production, petroleum processing and refining, and processing of natural gas. These regulations set out that mandatory insurance coverage for: civil liability environmental damage liability when applicable, well control needs to be put in place by offshore companies. The limits for civil liability and environmental damage are determined either through a Regulatory Minimum insured sum or through a Probable Maximum Loss (PML) study carried out in accordance with ASEA rules