BASHAM, RINGE Y CORREA ASSISTED EXXON MOBIL DURING THE SHORTAGE IN THE SUPPLY OF GASOLINE

BASHAM, RINGE Y CORREA ASSISTED EXXON MOBIL DURING THE SHORTAGE IN THE SUPPLY OF GASOLINES AND DIESELS IN MEXICO AND CONTINUES ADVISING OTHER CLIENT´S FOR THE IMPORT OF THEIR PRODUCTS TO MÉXICO.

Mexico City, February 25th, 2019.- During the past month some regions throughout México experienced a shortage in the supply of gasoline and diesel. This problem had a direct impact to the service stations and, specifically, to the final consumers affecting their day to day activities.

The shortage derived from the governmental decision of shutting down the pipelines that supplied gasolines and diesel to the main supply terminals, as a measure to put an end to the increasing problem of oil products robbery.

In this context, our firm legally assisted Exxon Mobil (“Exxon”) in matters directly related to its activities in Mexico, mainly in connection with the possible increases in the prices at which gasolines and diesel were sold in Exxon´s services stations; its continuity to import its products; and possible consequences from failure of certain service stations to comply with their commercialization agreements with Exxon.

Exxon was the first international company in Mexico to import its own gasolines and diesel to Mexico and to establish a commercial and logistic system to storage and supply its products to their branded service stations and third parties.

Our legal advice helped Exxon in continuing the importation of gasoline and diesel to face and minimize the shortage impact, mainly in the Bajio zone of Mexico.

We additionally have continue helping Cogent Energy Solutions México in their efforts to import and sell (i) gasoline; (ii) diesel; (iii) jet-fuel; and (iv) aircraft gasoline during this year in Mexico, as well as to operate some service stations by selling their own products.

Although the shortage has already been controlled by federal government in almost all Mexican regions, new supply and distribution schemes are currently being implemented by the industry. This has created a need for companies to seek legal advice regarding their current contracts, permits and commercial schemes, something in which Basham has and continues to be involved in, mainly by helping our clients to expedite and facilitate their operations and activities in México.