Legal developments in energy sector investigations in Mexico and Ecuador

In Mexico, the Chihuahua State Attorney General's Office (FGE) stated it has no active investigation against Carlos Alberto Velázquez Nieto, owner of Energética Carvel. This follows federal operations conducted by the General Prosecutor's Office (FGR) on September 24, involving searches of properties and businesses linked to Velázquez Nieto in Chihuahua and Ciudad Juárez. Federal authorities have been investigating Carvel's companies since 2018 regarding potential irregularities in the transport, storage, and distribution of hydrocarbons. The operations included the seizure of at least seven companies and four service stations, as well as facilities for Aseo Municipal in Ciudad Juárez.

In Ecuador, the State Attorney General's Office issued an abstention ruling in favor of former Minister of Energy and Mines, Antonio Gonçalves, regarding the Progen case. The investigation into alleged embezzlement involving emergency electricity generation contracts concluded that Gonçalves's role was limited to political leadership and planning. The prosecution found no evidence that he had operational control over accounts, transfers, or payments made to the foreign contractor Progen Industries LLC. The case stems from emergency thermal generation contracts signed by Celec EP during the 2024 energy crisis, which involved significant advances and subsequent delays.