Investor Presentation A New Context & Broader Potential May 2014
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 2
Quick take on the new energy sector in Mexico Assignments* Migration 1. Production-sharing 2. Profit-sharing Contracts + Third Parties 3. Licenses Third Parties 4. Services Upstream *Transboundary Possibility of direct…
What Comes Next 90 days The Ministry of Energy will prioritize PEMEXs requests for 03/21/2014 Round Zero exploratory blocks and producing fields and define its dimensions The Ministry of Energy 180 days Round Zero will resolve…
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 6
Regulation in the New Mexican Energy Sector Upstream Downstream Selection of areas (+CNH technical assistance) Permits: Grants and revokes assignments Oil refining Designs and defines contracts and terms of public Natural gas…
Energy Policy and Transparency Coordination Council of the Energy Sector Transparency 2. CRE and CNH 1. Publication of sessions, agreements and resolutions 2. Code of Conduct 3. Avoid conflicts of interest SENER Evaluate the work…
National Content and National Industry National preference will be Accumulated Min Public Trust to Develop granted when similar 25% (2025) National Suppliers and conditions are being National Contractors offered (price, quality and…
Industrial Safety and Environmental Protection National Industrial Safety and Environmental Protection Agency of the Hydrocarbons Sector1 Industrial and Operational Safety National and international standards Prevention and…
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 11
What Challenges Will PEMEX Face Transport, storage Exploration & Processing of and distribution of Production Hydrocarbons hydrocarbons (Upstream) (Downstream) (Midstream) PEMEX will compete along the entire value chain…
State Productive Enterprise and Corporate Governance New Objective Economic value creation and increase National revenue Budget Compensation Contracting Budgetary autonomy Competitive regime to PEMEX is excluded from Public…
Oil and Gas Industry Fiscal Regime Taxes & Assignments Duties Migration Fiscal burden to gross sales 79% to 65% Recognition of a greater proportion of exploration and production costs Dividends Signing Licenses Contractual…
Benefits & Opportunities New New Industry Business Scheme Environment State Productive Enterprise Transfer of technology and know- Operational and efficiency Management and how metrics budgetary autonomy Collaboration with…
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 16
A Snapshot Exploration and Production Downstream International Crude oil production: 2,522 Mbd1 Refining capacity: 1,690 Mbd Crude oil exports: 1,189 Mbd1 Natural gas production: 5,679 Strategically positioned 3rd largest oil exporter…
Stable Production and Improving RRR1 Stable Crude Oil Production (Mbd) Growing Natural Gas Production3 (Bcf) 8.0 3,000 2,4692 5.92 6.0 Onshore Non-associated 2,000 4.0 Off-shore 1,000 2.0 Associated 0 0.0 Jan-00 Nov-02 Sep-05…
Top Tier Player in Shallow Waters Competitive Advantages 87% of 1P reserves are located in the Southeastern basins Competitive cost structure (Production cost USD 6.84; F&D cost USD13.77)1 Developed infrastructure for the…
Mexicos Next Production Frontiers Deep Water Competitive Advantages PEMEX has acquired significant information from deep and ultra-deep water oil fields in the Gulf of Mexico: United Gulf of States 3D seismic acquisition: 124,790…
Mexicos Next Production Frontiers - Shale Competitive Advantages Bakken Eagle Ford and Woodford have continuity Antrim across the border Bakken Niobrara Marcellus Bakken and Haynesville are analogues of Bakken Antrim…
Downstream and Midstream Production Capacity Producer Zone Refinery Refining Petrochemical Center Atmospheric distillation capacity 1,690 Mbd Gas Processing Center Gas Processing Sour Nat Gas 4.5 Bcf Camargo Sales Point…
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 23
A Diversified & Well-Distributed Debt Structure By Currency By Currency By Currency By Currency 2% 1% 5% 1% 2% 1% 16% 11% 2% 28.1% 19% 3% 19% 69% 71.9% 62% 80% 7% Dollar Euros Fixed Floating Int. Bonds Cebures Dollars Pesos…
Content A New Context in the Mexican Oil & Gas Sector Key Aspects of the Secondary Legislation Challenges and Opportunities PEMEX Today & Our Strategic Positioning Financial Highlights Takeaways 29
Takeaway Points The new context in the Mexican O&G Industry opens important opportunities for PEMEX and new players in the short, medium and long term. Substantial progress has been made in revisiting the Mexican energy model. PEMEX…
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