The ICSID ruling closes the Oro Negro case and poses challenges for energy investment in Mexico.

The recent ruling by the arbitration tribunal in the case of Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. represents a significant turn in a conflict that has captured the attention of public opinion and the energy sector in Mexico. On August 19, the tribunal, administered by the International Centre for Settlement of Investment Disputes (ICSID), issued a unanimous resolution determining that it lacked jurisdiction to make decisions on the claims presented by the aforementioned company, thus dismissing the case entirely. This ruling not only closes a chapter in a legal process that initially sought to recover more than 270 million dollars against the Mexican state but also imposes a financial burden on the claimants in the form of arbitration costs amounting to approximately 400 thousand dollars. The Mexican Ministry of Energy celebrated this decision, calling it a remarkable victory for the Mexican state and an important precedent in the field of investment arbitration. The tribunal's resolution is based on the consideration that the claimants, who hold dual nationality, lacked legitimacy to present claims against their own country. This aspect of the decision highlights the complexity of international arbitration cases, where the interests of investors and state sovereignty often conflict. The Oro Negro case is particularly emblematic within the context of the Energy Reform of 2013, which allowed for the opening of the energy sector to private investment. Founded in 2012 by Gonzalo Gil White and José Antonio Cañedo White, the company obtained multimillion-dollar contracts that were compromised by the subsequent financial crisis of Petróleos Mexicanos (Pemex). The company's situation worsened when, following a decline in demand for offshore platforms, Oro Negro declared insolvency and had to initiate bankruptcy proceedings. The management of Oro Negro has been surrounded by controversies and allegations of fraud, leading to judicial investigations that have implicated several of its executives. Financial irregularities came to light in 2018 when fraudulent management of resources by Gonzalo Gil White and other executives of the company was reported. This context of crisis and accusations has further complicated the company's image, which, at its peak, managed to accumulate over 18 billion pesos in platform leasing contracts. The relationship between Oro Negro's executives and senior management at Pemex during the years of the Energy Reform has also been the subject of analysis and criticism. Carlos Morales Gil, who signed a significant portion of the company's contracts, was the director of Pemex Exploration and Production during a critical period. The duality of roles and familial connections between Oro Negro executives and prominent figures in Mexican politics have raised questions about transparency and ethics in contract allocation in the energy sector. With Oro Negro's bankruptcy declaration and recent judicial decisions, the company's situation appears to have reached a new low. Arrest warrants issued against some of its executives reflect the seriousness of the allegations against them. They are accused of breach of trust and fraudulent administration, with reports pointing to a possible diversion of hundreds of millions of pesos. Attorney Guillermo Barradas, representing five companies affected by Oro Negro's actions, has indicated that the irregularities committed by the firm could reach astronomical figures and would justify prison sentences. This situation not only hints at the economic impact on private investment in the country but also highlights the urgent need to strengthen regulations and oversight mechanisms in the sector. As the tribunal's ruling is reviewed, the Ministry of Energy has stated that an analysis will be conducted to identify any potential confidential information before its official publication. This process is crucial, as transparency in resolving investment disputes is essential to fostering a climate of trust between investors and the state. In conclusion, the ICSID ruling and the events related to Oro Negro generate an important debate about the integrity of the energy market in Mexico and the need for adequate safeguards to protect both investors and public resources. This case not only symbolizes the current challenges in investment regulation but also raises questions about the relationship between the public and private sectors in a context of deep reforms.