The case of the day is Corporación Mexicana de Mantenimiento Integral v. PEMEX-Exploración Y Producción (S.D.N.Y. 2013). PEMEX Exploración y Produccion (“PEP”) was a subsidiary of the Mexican state-owned petroleum company, PEMEX. COMMISA was a Mexican subsidiary of KBR, Inc. In 1997, PEP and COMMISA entered into a contract for the construction of two offshore natural gas platforms in the Gulf of Mexico. The contract had a Mexican choice of law clause and an arbitration clause calling for arbitration of disputes in Mexico. The contract also required COMMISA to obtain a performance bond and had a provision allowing PEP to rescind the contract if COMMISA breached certain requirements of the contract. The arbitration agreement was consistent with PEMEX’s enabling statute, which authorized PEP to…

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