Oil & Money 2014 hosts Mexico Government Bid Round Briefing

Mexico’s Energy Reform

October, 2014

Fundamental Principles of the Energy Reform

Hydrocarbons in the subsurface belong to the Nation.

Free market access and direct and fair competition amongst state-owned enterprises and private companies.

Strengthening of regulatory bodies.

Transparency and accountability.

Sustainability and environmental protection.

Maximizing State’s revenue for the Nation’s long-term development.

1

2

3

4

6 5

6

3

New Institutional Arrangement

The institutional framework is modernized with the creation of specialized entities, the

strengthening of existing ones, the enactment of clear rules, the definition of specific mandates and

enhanced interaction between entities to ensure checks and balances.

An intergovernmental Coordinating Council of the Energy Sector, chaired by the Energy Ministry,

will issue recommendations and approve coordination mechanisms to ensure the fulfillment ofenergy policy.

PEMEX becomes a State Productive Enterprise (SPE).4

Government bodies

with new powers

Oil income management

Technical bodies in charge of creating

new markets

State Productive Enterprises

New and reinforced regulatory agencies

Entitlements and Contracts

The State may sign contracts with SPEs or with private companies through the CNH.

Administrative termination due to major contract breach. International arbitration will

take place following the Mexican legislation and in Spanish.

Booking of expected economic benefits will be allowed for accounting and financial

purposes, every contract shall clearly state that hydrocarbons in the subsoil belong to the

Nation.

The State may mandate direct participation in three cases: (1) when fields coexist, (2)

to promote technological transfer, and (3) when it has an economic interest to participate

through a Special Purpose Vehicle (SPV). For cases (2) and (3), maximum of 30%

participation will be established.

Mining concessionaires will be able to obtain a contract (without a bidding process) to

extract coalbed methane stored in carbon mines already in production.

Exploration and Extraction Contracts

SPEs will participate with a minimum of 20% in contracts for areas where trans-boundary

reservoirs may exist.

When trans-boundary resources are confirmed, bilateral treaties will apply.

Trans-boundary Hydrocarbon Reservoirs

Awarded to Pemex in Round 0.

Exceptionally awarded to State Productive Enterprises (SPEs) in the future.

New competitive fiscal regime.

Entitlements

5

Selection of contractual areas

Data rooms and

bidding rounds

Management of

contracts

Economic-fiscal

termsWith technical

support from:

Technical design

(incl. local content requirements)

Technical approval of exploration

and development plansAuthorization of surface

exploration and well-drilling

Environmental and

industrial safety regulation

and oversight

Bidding guidelines

1. Contract design

2. Bidding process

3. Operation

The Mexican State’s Bidding Rounds: Contractual Process

ANSIPA

6

Award and

contract signing

The Mexican Petroleum Fund for Stabilization and Development will be in charge of paying amounts due on

contracts and managing the State oil revenues.

4. Oil Income Management

Pre-qualification

Migration

request

Award and

contract signature

With technical

support from:

Farm-out feasibility

assessment

Technical approval of the exploration

and development plans

1. Migration from entitlements to contracts

2. Bidding process

3. Operation

The Mexican State’s Bidding Rounds: Farm-outs

Definition of the

contract’s fiscal terms

Technical contract design

Bidding guidelines

Simple, non-binding

opinion about the pre-

qualification process

Data rooms and

bidding rounds

ANSIPA

Authorization of surface

exploration and drillings

Contract

technical

management

Environmental and

industrial safety regulation

and oversight

7

The Mexican Petroleum Fund for Stabilization and Development will be in charge of paying amounts due on

contracts and managing the State oil revenues.

4. Oil Income Management

Binding opinion

about pre-

qualification criteria

Migration request

1. Migration request

Contractual Process: CIEPs and COPFs’ Migration*

Current

contractor

Issues guidelines

that apply to the

process

Issues

simple, non-

binding

opinion

2. Formalization

Investment valuation and

constitution of an alliance or joint

venture

Contract

signing**

Current contract

remains in place

Yes

No

* CIEP: Integral Exploration and Production Contract, COPF: Financed Public Work Contract.

** The contract is signed with the new alliance or joint venture.

Design of fiscal terms

that do not consider

an adverse effect on

the State’s expected

revenue balance

Contracts

technical

design

Migration approvalDeclaration of agreement

No need to go through a contractual process, for service contracts that have already

undergone a bidding process.

Current

contractor

8

Contractor

to become

partner

Contractual Arrangements

License ContractsProduction

Sharing Contracts

Profit Sharing

Contracts

Contractual

Arrangements

Payment in kind Payment in cash

The Hydrocarbons Law is flexible enough to allow the Ministry of Energy

(SENER), with the opinion of the Ministry of Finance (SHCP) and CNH, to

select the contractual arrangement that best fits each project’s characteristics:

Contracts will be designed according to international practice.

License and Production Sharing Contracts will be offered in Round 1.

9

Fiscal Elements by Contract Type

5

Parameters will be defined taking into account each area’s characteristics.

Awarding variables will have an economic nature, aiming to maximize the

State’s revenue.

Production

Sharing

Profit

Sharing

License

Contracts

Corporate Income Tax

Surface Rent

States and Municipalities Taxes

Basic Royalty

Signature Bonus

Economic Variable

(Payment to the State)

(In kind)

(Cash)

(Cash)

Cost Recovery /

Adjustment Mechanism

Some Contractual Provisions

Will be established in each contract’s terms

and conditions.

Will be of economic nature, considering

government take and work program, aiming

to maximize the State’s revenue.

Will increase from a 25% on average

requirement in 2015, to 35% on average in

2025, excluding deep-water projects.

Preference shall be given to Mexican

companies that offer similar price, quality and

lead time conditions.

Awarding

Variables

Local Content

11

12

The constitutional reform envisioned the sustainable energy principle

for the Hydrocarbons industry.

Prior to an entitlement or the publication of a call for bids, SENER along

with relevant government entities, will carry out a Social Impact Study.

All project developers must submit a Social Impact Assessment

(SIA) to SENER. When applicable, SENER will conduct prior, free, and

informed consultations with indigenous communities.

Negotiations for land surface use and occupation will be carried out

between land owners and companies. The Government will take part

when alternative resolutions are needed.

The compensation related to the land use agreement will include

payments for rent, land use change, adverse effects, etc.

When commercial production is achieved, a percentage of the

project's income could be negotiated. According to the Law, the

percentage shall not be less than 0.5% nor more than 3% for non-

associated gas, and not be less than 0.5% nor more than 2% in other

cases.

Sustainability

and Human

Rights

Land surface use

and occupation

Some Contractual Provisions (2)

Transparency and Accountability

Institutional checks and balances framework (SENER, CNH,

SHCP, and the Mexican Petroleum Fund).

Bidding rounds procedures and results will be announced in public

sessions.

The contracts and all the information related to the respective

payments will be publicly available.

Control systems to effectively monitor cost recovery.

All sessions, agreements, and resolutions will be publicly available.

The commissioners will not be allowed to participate in cases where

conflicts of interest might arise.

At least two commissioners must be present at the meetings

between regulators and the regulated parties, and the meeting

records must be disclosed.

Ethics code (prohibiting commissioners and staff accepting

allowances, travel expenses or gifts).

Corporate information will be published according to the

Mexican Stock Market Act, disclosing their financial status as well

as that of its affiliates and subsidiaries.

Exploration and

Extraction Bids

and Contracts

Coordinated

Regulatory Agencies

(CNH and CRE)

State-Owned

Productive

Enterprises

13

Round 1 – General Map

14

Unconventionals Perdido Area

Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs

Pemex’s current contracts

The proposal for Round 1 contains a wide and diverse selection of areas and fields with

different characteristics.

The estimated total investment for Round 1, including Pemex’s farm-outs, amounts to 12.6

billion USD per year, that is, 50.5 billion USD over the 2015 -2018 period.

Round 1

15

Type of

project

Blocks

(number)

Surface

(acres)

Volume

(MMboe)

4 yr. estimated

investment

(MMUSD)

Annual estimated

investment

(MMUSD)

Exploration

(Prospective

Resources)

109 6,400,770 14,606 19,000 4,750

Extraction

(2P Reserves )

60 641,732 3,782 15,100 3,775

Farm-outs

(2P Reserves )

14 (in 10

contracts)

151,228 1,557 16,400 4,100

Total 183 7,193,730 19,945 50,500 12,625

Ronda 1Round 1 – Timeline

16

November

1st half

December

1st half

January

1st half

February

1st half

March

1st half

Terms and Conditions, Contract

model and prequalification

requirements

Farm-outs

SW: Bolontikú, Sinan and Ek

EHO: Ayatsil-Tekel-Utsil

Rodador, Ogarrio, Cárdenas-Mora

Kunah-Piklis, Trion, Exploratus

January

1st half

February

1st half

March

1st half

April

1st half

May

1st half

New areas and fields

Shallow Water

Extra-heavy Oil

Chicontepec and Unconventional

Onshore

Deepwater

Participants’ registration

Data room opening

Ronda 1Round 1 – Timeline

17

Shallow Water

Extra-heavy Oil

Chicontepec and Unconventional

Onshore

Deepwater

oct

-14

no

v-1

4

dec

-14

jan

-15

feb

-15

mar

-15

apr-

15

may

-15

jun

-15

jul-

15

aug-

15

sep

-15

oct

-15

Publication of Terms and Conditions

Participants registration and data rooms opening

Awarding of contracts

Social Impact Assessment performed by SENER

http://reformas.gob.mx/reforma-energetica/

http://www.energia.gob.mx/

http://www.energia.gob.mx/webSener/rondauno/index.html

Head of Investor Relations Office

Gabriel Heller Green

[email protected]

Energy Reform: Round 1

(Sessions)


22


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Round 1: SUMMARY

Type of

project

Blocks

(number)

Surface

(km2)

Volume

(MMboe)

4 yr. estimated

investment

(MMUSD)

Annual estimated

investment

(MMUSD)

Exploration

(Prospective

Resources)

109 25,903 14,606 19,000 4,750

Extraction

(2P Reserves )

60 2,597 3,782 15,100 3,775

Farm-outs

(2P Reserves )

14 (in 10

contracts)

612 1,557 16,400 4,100

Total 183 29,112 19,945 50,500 12,625

23

• Onshore, Shallow Waters and Extra-heavy Oils

• Perdido and South Gulf of Mexico Deepwaters

• Chicontepec and Unconventionals


25


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Tabasco

Chiapas

Veracruz

Campeche

Oaxaca

7

5

2

1

8

4

4

9

6

3

10

11

92°0'0"W

92°0'0"W

94°0'0"W

94°0'0"W

18

°0'0

"N

18

°0'0

"N

Simbología

R1 Explotación

R1 Exploración

Asociaciones Pemex

Contratos Pemex (CIEPS-COPFS)0 20 40 6010km±

Onshore, Shallow Waters and Extra-heavy Oils

General Map

Southeast

Marine Basins

Utsil-Tekel-

Ayatsil

Sinan

Ek

Bolontikú

Kayab

Mora

CárdenasOgarrio

Tson y Pohp

PitAlak-Kach

Kastelan

26

TypeVolume˜

(MMboe)

Blocks /

Fields

Area

(km2)

Prospective

Resources*724 11 313-630

Reserves 2P* 1,104 32 7-54

*Excluding Pemex’s farm-outs and contracts

˜˜ Risked volume

R1 Extraction

R1 Exploration

Pemex’s farm-outs


27


Seismic Map

ELIMINAR

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Seismic 3D

Seismic 2D

3D seismic information

Feature PoSTK PreSTM PreSDMSpecial

Process

Yes 78% 100% 67% 12%

No 12% 0% 23% 78%


Structures Map

28

Reservoirs are

associated with

structural, salt

tectonics, stratigraphic

and combined traps.

29

Structural Styles

• Normal faulting with rotated blocks (Late

Miocene-Holocene)

• Salt cored anticlines

• Salt rollers and diapirs (Jurassic-Late

Cretaceous)

A’A

Tiempo (seg) Time (seg)10 km

0

2

4

6

8

seg

A’A

Time (seg)10 km

0

2

4

6

8

seg

Recent-Pleistocene

Upper Pliocene

Middle Pliocene

Lower Pliocene

Upper Miocene

Middle Miocene

Lower Miocene

Upper Oligocene

Upper Eocene

Upper Cretaceous

Upper Jurassic

Callovian Salt

Basement


Main structural styles

30

Mid

Lower

Up

pe

r

Eocene

Middle

Upper

Pliocene

Paleocene

Oligocene

Miocene

Holocene-Pleistocene

Pa

leo

ge

ne

Cre

tac

eo

us

Ju

ras

ic

S A L T

Tithonian

Kimmeridgian

Oxfordian

?

Lo

w

CallovianBathonianBajocianAalenianToarcian

Pliensbachian

Ne

og

en

e

SOUTHEAST MARINE BASINS

• 7 Established Plays

Main, Breccia-Upper Cretaceous

• 1 Hypothetical Play

Pre-Oxfordian

• Hydrocarbon types

Heavy & light oil and gas

Main fields

Tecoalli, Amoca, Hap,

Akpul, Uchak

Yaxche, Hokchi

Abkatun, Pol, Chuc,

Caan, Batab, Homol,

Etkal, Kuil,Chuhuk,

Ichalkil, Ayatsil, Tekel

Yaxche, Xanab, Nak, May,

Tsimin, Xulum, Bolontiku,

Sinan, Citam, Sikil, Yum,

Mison, Cantarell, Ku,

Maloob, Zaap

Maloob, Zaap, Tson ,Xanab,

Xux, Tsimin, Kab, Bolontiku,

Kix,Citam, Sinan, Ixtal,

Manik, Onel,Taratunich,

Ichalkil, Ayin, Och, Uech,

Kax

Ku, Zaap, Cantarell

Hayabil,

Ek-Balam-Lum

Stratigraphy

RS

RS

Reservoir

Seal

Rock Source

Established play

Hypothetical play

Depositional features

R

RS

S

R

R

R

R

R

S

S

S

S

S RS

Sands and sandstonesRamp, platform and slope (chanels and fans)

CalcarenitesBasin floor fans

Calcareous brecciaSlope and basin

Fractured carbonatesBasin

Fractured carbonatesBasin

Oolitic banksHigh energy inner ramp

Eolian sandsBeach and dunes

R

R


Plays

5

Exploration:


Statistics

31

Block #Geological

province

Main

Hydrocarbon

Identified

prospects

(number)

Area

(km2)

Prospective

Resources*

(MMboe)

1 Salina Basin Extra-heavy oil 8 470 171

2 Salina Basin Light oil 9 471 104




6 Salina Basin Heavy oil 2 392 56

7 Macuspana Wet gas 4 630 48




11 Salina Basin Extra-light oil 1 353 20

Total 44 5,018 724

*The estimated volumes of prospective resources are risked and correspond to the P(mean) scenario (include a geological risk

factor or chance of success).

32

Onshore, Shallow Waters and Extra-heavy Oil

Infrastructure Map

SymbolsR1 ExplorationR1 ExploitationPemex’s associationsPemex’s ContractsPipelinesDrilled wells

33


Infrastructure Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Fields

Drilled wells

Pipelines

34


Infrastructure Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Fields

Drilled wells

Pipelines

35


Infrastructure Map

36


Infrastructure Map

5

Exploration:

Extraction:

Onshore, Shallow waters and Extra-heavy Oils

Statistics

37

Block #Geological

province

Main

Hydrocarbon

Identified

prospects

(number)

Area

(km2)

Prospective

Resources*

(MMboe)






6 Salina Basin Heavy oil 2 392 56

7 Salina Basin Wet gas 4 630 48




11 Salina Basin Extra-light oil 1 353 20

Total 44 5,018 724

TypeNumber

of Fields

OOIP

(MMbls)

OGIP

(Bcf)

Area

(km2)

1P Reserves

(MMboe)

2P Reserves

(MMboe)

3P Reserves

(MMboe)

°API

(average)

Extra-heavy oils 8 14,098 1,791 219 336 757 1,753 11

Shallow waters 7 1,819 2,488 141 124 293 562 32

Onshore south 17 1,873 3,943 223 34 54 64 40

Total 32 17,790 8,222 584 494 1,104 2,378 27

*The estimated volumes of prospective resources are risked and correspond to the

P(mean) scenario (include a geological risk factor or chance of success).

Information by field

Q&A of Onshore, Shallow waters

and Extra-heavy Oils Session





40


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


41

Perdido Area

Exploratus

Trion

TypeVolume˜

(MMboe)

Blocks

(number)

Area

(km2)

Prospective

Resources*1,591 11 224-409

Deepwaters: Perdido Area

General Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs



˜˜ Risked volume

42

Deepwater: Perdido Area

Seismic Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Seismic 3D

Seismic 2D


Process

Yes 100% 100% 100% 100%

No 0% 0% 0% 0%

Tectónica gravitacional y salina

N

Supremus-1

-1Trion-1

Pep-1

Vespa-1

Dominio de contracciónDominio de extensión

Exploratus-1

-

Trion-1DL

50 km0

1

3

2

4

6

5

7

8

9

10

11

U.S.A

México

Leyenda

Cinturón plegado Kama

Cinturón plegado subsalino

Diapiros, minicuencas y pliegues

Sistema extensional Neógeno

Capas de sal alóctona somera

Sistemaextensional profundo (Neógeno)

Cinturón plegado Perdido

Sistema ligado somero

Cordilleras MexicanasPozo

Falla normal

Falla inversa

Pliegue anticlinal

Sistema extensional Paleógeno

Cinturón plegado periférico

Falla lateral

11

9

10

3

1

5

4

2

6

7

8

Maximino

Bloques R1

Baha-1

Tiger-1

Toledo-1

Hammerhead-1

Great White-1

43

Deepwater:Perdido Area

Structures Map

Gravitational and Salt Tectonics

Extensional regime

Contractional regime

Paleogene extensional system

Deep extensional system (Neogene)

Kama Foldbelt

Diapirs, minibasins and folds

Shallow alloctonous salt layers

Subsaline Foldbelt

Perdido Foldbelt

Periphereal Foldbelt

Neogene extensional system

Related shallow system

Mexican Ridges

Normal Fault

Thrust Fault

Lateral Fault

Anticline

Wells

R1 Blocks

44


Structural features

Structural style: Folding with NE-SW orientation limited by reverse faults.

Type of trap: Combined, with 4-way closure

Structural style: Imbricated folds with shallow detachment radially to the allochthonous salt

Type of trap: Combined, with 3-way closure and against fault

Structural style: Subsaline folding with NE-SW orientation limited by thrust faults.

Type of trap: Combined, with 4-3 way and against fault

Water column

Pleistocene

Pliocene

Upper Miocene

Middle Miocene

Lower Miocene

Oligocene

Mobile clay

Eocene

Paleocene

Cretaceous

Jurassic

Salt

Basement

Stratigraphy

45


Plays

Upper

Middle

Lower

Upper

LowerUpper

Middle

Lower

Maastr

Camp

Sant

ConiacTuron

Cenom

Albian

Aptian

Barrem

Hauter

Valang

Berrias

Tithon

Kimmer

Oxford

Callov

Bathon

BajocMid

dle

Jura

sic

Jura

sic

Cre

tace

ou

s

PleistocenePliocene

Mio

cen

eEo

cen

eO

lig

Paleogene

Pal

eoge

ne

Neo

gen

e

Up

pe

r C

reta

ceo

us

Low

er

Cre

tace

ou

sU

pp

er

Jura

sic

Sands and siltstone

Sandstone

Fractured carbonates

Argillaceous limestone, shale

Fractured carbonates Sandstones and siltstones

Argillaceous limestone, shale

Vicksburg

Wilcox

Midway

Agua

La Peña

PimientaTamanSantiago

Nueva

RS

RS

Reservoir

Seal

Rock Source

Established play

Hypothetical play

S

S

S

S

S

R

R

R

R

R

RS

RS

Sandstone

Sandstone

R

• 2 Established Plays

Eocene & Paleogene

• 4 Hypothetical Play

Oligocene, Upper & Lower

Cretaceous

• Hydrocarbon types

Light oil and gas

Depositional features Perdido AreaStratigraphy

46

5


Statistics

Exploration:

Block # Geological province Main Hydrocarbon

Identified

prospects

(number)

Area

(km2)

Prospective

Resources*

(MMboe)

1 Perdido Fold Belt Extra-light oil 1 299 217

2 Perdido Fold Belt Wet gas 2 224 209

3 Perdido Fold Belt Light oil 1 337 195


5 Subsalt Belt Light oil 4 298 143

6 Subsalt Belt Extra-light oil 2 297 141

7 Perdido Fold Belt Extra-light oil 2 373 129


9 Subsalt Belt Light oil 2 297 120



Total 18 3,506 1,591

*The estimated volumes of prospective resources are risked and correspond to the P(mean) scenario (include a geological risk factor

or chance of success).


47


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


48

Deepwaters: South

General Map

Mexican

Ridges

Salina Basin

TypeVolume˜

(MMboe)

Blocks

(number)

Area

(km2)

Prospective

Resources*3,222 17 384-966

Piklis

Kunah

R1 Extraction

R1 Exploration

Pemex’s farm-outs



˜˜ Risked volume

49

Deepwaters: South

Seismic Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Seismic 3D

Seismic 2D


Process

Yes 100% 100% 60% 50%

No 0% 0% 40% 50%

50

Deepwaters: South

Stuctures Map

Reservoirs are structurally

related with two main

domains in deepwater

GOM; contractional regime

of Mexican Ridges and

deformation of Saline Basin

Contractional System

of Mexican Ridges

Catemaco Fold Belt

Salt Tectonics

51

Deepwaters: South

Structural Features

B B’0

4

8

12

Mexican Ridges Saline Basin

km

0

km

18

Mexican Ridges contractional system

A A’

Abyssal plain

Mexican Ridges

Structural Regime

• Gravitational Tectonics

• Related extentional-contractional

system

Structural Styles

• Asymmetrical anticlines parallel to

shoreline

• Eocene detachment folds

Saline Basin

Structural regime

• Contractional-extensional

• Salt Tectonics

Structural Styles

• Fault-bend folds and trhust folds

• Salt intrusions and diapirs

• Shallow allochtonous salt bodies.

52

Deepwaters: South

Plays

HypotheticalPlay

JU

RA

SS

ICT

E R

T I

A R

YC

RE

TA

CE

OU

S

CALLOVIANMID

LOWER

UP

PE

R

EOCENE

MIDDLE

UPPER

PLIOCENE

PALEOCENE

OLIGOCENE

MIOCENE

TITHONIAN

KIMMERIDGIAN

OXFORDIAN

PLEISTOCENE

LOW.

MID.

UPP.

?

?

?

?

?

HypotheticalPlay?

Basin and slope sandstone

(Turbidites)

LOW.

MID.

UPP.

EstablishedPlay


(Turbidites)

Breccias

Fractured carbonates

High energy

Carbonated banks


(Turbidites)

Depositional features Main Discoveries

Labay, Lakach, Leek, Noxal

Tabscoob, Piklis, Kunah

Lalail

Tabscoob

Tamil

Nab

HypotheticalPlay?

Source Rock

Source Rock

Mesozoic Play

Paleogene Play

Neogene Play

Seal Rock

Seal Rock

Seal Rock

EstablishedPlay

Establish Play

Established Play

Eolian sands

Seal Rock

RS

RS

Reservoir

Seal

Rock Source

Established play

Hypothetical play

R

R

R

R

R

R

R

R

RS

RS

S

S

S

S

Stratigraphy

S

53

5

Deepwaters: South

Statistics

Exploration:

Block # Region Geological provinceMain

Hydrocarbon

Identified

prospects

(number)

Area

(km2)

Prospective

Resources*

(MMboe)

1 Holok Mexican Ridges Dry Gas 4 388 300

2 Holok Salina Basin Wet Gas 3 465 282

3 Holok Salina Basin Wet Gas 3 464 278

4 Holok Catemaco Fold Belt Wet Gas 1 466 233

5 Han Salina Basin Extra-heavy Oil 3 966 229

6 Han Salina Basin Heavy Oil 2 619 225

7 Han Salina Basin Light Oil 3 766 224





12 Tlancanan Mexican Ridges Dry Gas 1 386 126

13 Tlancanan Mexican Ridges Wet Gas 2 385 124


15 Tlancanan Mexican Ridges Dry Gas 2 460 114


17 Han Salina Basin Heavy Oil 1 619 109

Total 38 9,068 3,222

*The estimated volumes of prospective resources are risked and correspond to the P(mean) scenario (include a geological risk factor or

chance of success).

Q&A of Perdido and South Gulf of Mexico

Deepwaters Session





56


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


57

Chicontepec and Unconventionals

General Map

Chicontepec

Unconventionals TypeVolume˜

(MMboe)

Blocks/

Fields

Area

(km2)

Prospective

Resources*8,927 62 120

2P Reserves* 2,678 28 35-311


˜˜ Risked volume

58


Seismic Map

59

Unconventionals

Structural Elements

Basement

Middle Jurasic

Upper Jurasic

Middle-Lower CretaceousUpper Cretaceous

Tampico-Misantla Basin Tuxpan platform Extensional zone of Gulf of Mexico

1

5

10

km

C

PaleogeneNeogene

C’

BasinTectonic

elementStructural elements

Deformation

age

Thickness

(km)

Tampico-

MisantlaBasin

Compressive - wide

anticlinesPaleogene > 6

0

1000

2000

3000

C C’

60

Unconventionals

Petroleum SystemsC

retá

cico

Su

per

ior

Cretácico

Inferior

Terc

iari

o

Tampico-MisantlaSabinas BurgosBurro-Picachos

Pre-Mesozóico

Turoniano

Tithoniano

Agua

NuevaEagle

Ford

La Casita

Pimienta

II II III IV

Kimmeridgiano

Oxfordian

Jurá

sico

Su

per

ior

Agua

NuevaEagle

Ford

Calloviano

Cenomaniano

Sabinas

Burgos

Tampico-Misantla

Plataforma

Burro

Picachos

Zonas

prospectivas

IV

III

II

I

Sistemas Petroleros No Convencionales

Jurásico Superior Pimienta – La Casita (!)

Cretácico Superior Eagle Ford – Agua Nueva (!)

Aceite

Gas y aceite

Gas

Productos

Unconventional Petroleum Systems

Upper Jurassic Pimienta - La Casita (!)

Upper Cretaceous Eagle Ford-Agua Nueva (.)

Products

Gas

Gas & Oil

Oil

Unconv. Petroleum Systems, Tampico Misantla Basin

1 Upper Jurassic Pimienta-La Casita (!)

2 Upper Cretaceous Eagle Ford – Agua Nueva (.)

0

2

4 J.PimientaK.Agua Nueva

Basement

61

Unconventionals

Geochemical characterization - Upper Jurassic Pimienta

Ciudad Victoria

Tuxpan

Tampico

Ciudad Victoria

Tuxpan

Ro eq.

0.55-0.7

0.7-1.3

1.3-2

2-4

TOC

(%)

0 - 0.5

0.5 - 1.0

1.0 - 2.0

2.0 - 3.0

3.0 - 4.0

4.0 - 5.0

Blocks R1

62

Unconventionals

Geochemical characterization - Upper Cretaceous Agua Nueva

Blocks R1

Ciudad Victoria

Tuxpan

Tampico

Ciudad Victoria

Tuxpan

Ro eq.

0.55 - 0.7

0.7 - 1.3

1.3 - 2

2 - 4

TOC%

0 - 0.5

0.5 - 1

1 - 2

2 - 4

4 - 8

63


Main Infrastructure Map

64

Chicontepec and unconventionals

Infrastructure Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Fields

Drilled wells

Pipelines

65

Exploration (Unconventionals):

5


Statistics

Extraction (Chicontepec & Poza Rica-Altamira):

Information per field

RegionGeological

province

Main

Hydrocarbon

Blocks

(number)

Total Area

(km2)

Average area

per block

(km2)

Prospective

Resources

(MMboe)

Tampico-Misantla Tampico-Misantla Oil and wet gas 62 7,401 120 8,927

TypeNumber of

Fields

OOIP

(MMbls)

OGIP

(Bcf)

Area

(km2)

1P

Reserves

(MMboe)

2P

Reserves

(MMboe)

3P

Reserves

(MMboe)

°API

(average)

Chicontepec 11 38,918 20,090 1,903 355 2,671 7,022 30

Poza Rica -

Altamira17 733 552 129 4 7 10 26

Total 28 39,650 20,642 2,032 358 2,678 7,032 28

*The estimated volumes are risked and correspond to the P(mean) scenario (include a recovery factor and a discovery probability (technically

recoverable resources).


66


Extra Heavy

Oils

Shallow

Waters

Chicontepec

Southern

Deepwaters

Mexican

Ridges

R1 Extraction

R1 Exploration

Pemex’s farm-outs


67

Unconventionals Oil/Gas

General Map

TypeVolume˜

(MMboe)

Blocks

(number)

Area

(km2)

Prospective

Resources*142 8 112

R1 Extraction

R1 Exploration

Pemex’s farm-outs



˜˜ Risked volume

68


Seismic Map

69


Structural Styles

BasinTectonic

ElementStructural Elements

Deformation

Age

Thickness

(km)

Burro-

PicachosPlataform

Compressive – Wide

anticlinals, homoclinalPaleogene > 5

A A’

Km

K.Eagle Ford

4

2

0

6 J. La Casita

Sabinas Burro-Picachos

Basement

AA’

70


Petroleum System

Unconv. Petroleum Systems, Burro-Picachos Platform

1 Upper Cretaceous Eagle Ford – Agua Nueva (!)

Cre

táci

co S

up

erio

r

Cretácico

Inferior

Terc

iari

o

Tampico-MisantlaSabinas BurgosBurro-Picachos

Pre-Mesozóico

Turoniano

Tithoniano

Agua

NuevaEagle

Ford

La Casita

Pimienta

II II III IV

Kimmeridgiano

Oxfordian

Jurá

sico

Su

pe

rio

r

Agua

NuevaEagle

Ford

Calloviano

Cenomaniano

Sabinas

Burgos

Tampico-Misantla

Plataforma

Burro

Picachos

Zonas

prospectivas

IV

III

II

I

Sistemas Petroleros No Convencionales

Jurásico Superior Pimienta – La Casita (!)

Cretácico Superior Eagle Ford – Agua Nueva (!)

Aceite

Gas y aceite

Gas

Productos

Stratigraphic & geographic

extension

Unconventional Petroleum Systems

Upper Jurassic Pimienta - La Casita (!)

Upper Cretaceous Eagle Ford-Agua Nueva (!)

Products

Gas

Gas & Oil

Oil

71


Geochemical characterization

Monterrey

Monclova

Piedras

Negras

Nuevo

Laredo

Monterrey

Monclova

Piedras

Negras

Nuevo

Laredo

Ro eq.

0.55 - 0.7

0.7 - 1.3

1.3 - 2

2 - 4

TOC%

0 - 0.5

0.5 - 1

1 - 2

2 - 4

4 - 8

U.S. lease activity

R1 Blocks

72

Infraestructura y pozos


Main Infrastructure Map

R1 Extraction

R1 Exploration

Pemex’s farm-outs


Drilled wells

Pipelines

73

Exploration (Shale):

5


Statistics

Region Geological provinceMain

Hydrocarbon

Blocks

(number)

Area

(km2)

Average area per

block

(km2)

Prospective

Resources*

(MMboe)

Burro-

PicachosBurro-Picachos Oil/Gas 8 900 112 142

*The estimated volumes are risked and correspond to the P(mean) scenario (include a recovery factor and a discovery probability (technically

recoverable resources).

Round 1: SUMMARY

Type of

project

Blocks

(number)

Surface

(km2)

Volume

(MMboe)

4 yr. estimated

investment

(MMUSD)

Annual estimated

investment

(MMUSD)

Exploration

(Prospective

Resources)

109 25,903 14,606 19,000 4,750

Extraction

(2P Reserves )

60 2,597 3,782 15,100 3,775

Farm-outs

(2P Reserves )

14 (in 10

contracts)

612 1,557 16,400 4,100

Total 183 29,112 19,945 50,500 12,625

74

http://reformas.gob.mx/reforma-energetica/

http://www.energia.gob.mx/

http://www.energia.gob.mx/webSener/rondauno/index.html

Head of Investor Relations Office

Gabriel Heller Green

[email protected]

76

5

Appendix: Offshore, Shallow Waters and Extra-Heavy Oils

Statistics per field*

Type Field*OOIP

(MMbls)

OGIP

(Bcf)

Area

(km2)

1P

Reserves

(MMboe)

2P

Reserves

(MMboe)

3P

Reserves

(MMboe)

°API

(average)

Main

Hydrocarbon

Drilled

Wells

(count)

Cumulative

Production

(MMboe)

Extra-heavy

oils

Alak 261 88 14 0 43 51 14 Oil 1 0

Baksha 450 62 8 0 43 43 10 Oil 1 0

Kach 586 77 19 0 67 96 13 Oil 1 0

Kastelán 614 80 23 0 0 40 13 Oil 1 0

Kayab 6,966 751 54 184 232 889 9 Oil 3 0

Pit 2,870 216 37 151 314 463 11 Oil 2 0

Pohp 1,266 252 37 0 34 94 8 Oil 2 0

Tson 1,084 266 27 0 24 76 8 Oil 3 0

Extra-heavy Oils total 14,098 1,791 219 336 757 1,753 11 14 0

Shallow

Waters

Amoca 284 109 17 27 34 48 27 Oil 1 0

Hokchi 419 198 27 21 67 93 26 Oil 2 0

Ichalkil 571 637 45 11 39 145 33 Oil 2 0

Miztón 284 219 7 29 70 86 33 Oil - 0

Nak 139 567 18 6 38 67 42 Oil 1 0

Noxal 0 584 17 0 0 77 - Gas 1 0

Pokoch 122 174 9 30 46 46 30 Oil 1 0

Shallow Waters total 1,819 2,488 141 124 293 562 32 8 0

Onshore

South

Ayapa 28 13 4 1 1 1 30 Oil 11 7

Cafeto 23 60 3 1 1 1 65 Gas & Cond. 14 4

Calicanto 1 0 0 0 0 0 39 Oil - 0

Carmito 60 639 13 0 0 0 39 Gas & Cond. 13 79

Catedral 37 717 9 1 1 1 57 Gas & Cond. 21 144

Cuichapa-Poniente 453 472 32 0 1 1 32 Oil 246 179

Fortuna Nacional 7 62 15 0 0 0 53 Gas & Cond. 30 2

Iris 34 204 24 2 2 2 45 Gas & Cond. 14 55

Malva 13 86 5 1 1 1 35 Oil 3 9

Moloacán 222 122 32 2 2 2 20 Oil 315 45

Mundo Nuevo 86 572 19 1 1 1 50 Gas & Cond. 14 116

Ribereño 12 253 29 20 36 45 50 Gas & Cond. 2 0

Santa Ana 141 134 3 1 1 1 31 Oil - 37

Secadero 7 17 3 0 0 0 36 Oil 2 4

Tajón 652 424 5 1 4 4 33 Oil 5 2

Topén 40 72 7 1 1 1 29 Oil 4 12

Vernet 58 96 20 1 1 1 32 Oil 52 16

Onshore South total 1,873 3,943 223 34 54 64 40 746 712

Total 17,790 8,222 584 494 1,104 2,378 31 768 712

* In case of multiple reservoirs the information presented corresponds to the most representative reservoir.

5

Appendix: Chicontepec & Poza Rica-Altamira

Statistics per field*

Area Field*OOIP

(MMbls)

OGIP

(Bcf)

Area

(km2)

1P Reserves

(MMboe)

2P Reserves

(MMboe)

3P Reserves

(MMboe)

°API

(average)

Drilled Wells

(count)

Cumulative

Production

(MMboe)

Chicontepec

Agua Nacida 1,691 950 70 10 136 242 26 100 1

Amatitlán 1,061 847 35 1 52 161 44 20 0

Coyol 3,319 1,991 182 28 389 822 34 133 3

Coyotes 1,478 665 80 35 151 281 32 168 14

Furbero 5,259 2,367 213 105 367 649 22 553 10

Humapa 2,447 1,224 134 45 239 486 27 322 7

Pastoría 3,325 1,330 98 3 157 516 32 8 0

Presidente Alemán 3,323 1,866 196 77 355 712 31 459 45

Remolino 2,463 2,956 311 44 439 1,297 21 798 5

Sábana Grande 6,880 3,440 284 4 250 954 29 8 0

Tenexcuila 7,670 2,454 300 2 136 903 29 207 0

Chicontepec total 38,918 20,090 1,903 355 2,671 7,022 30 2,776 86

Poza Rica -

Altamira

Barcodón 165 48 12 1 1 1 18 55 15

Centurión 1 0 0 0 0 0 30 2 0

Gran Morelos 36 30 4 0 0 1 28 10 3

Guadalupe 6 11 0 0 0 0 33 1 1

Gutiérrez Zamora 3 2 3 0 0 0 18 6 1

Hallazgo 258 166 20 1 1 2 28 90 110

La Laja 2 1 4 0 0 0 26 6 0

Miguel Hidalgo 38 97 4 0 1 1 30 25 10

Paso de Oro 1 0 5 0 0 0 29 8 0

Pirámide 1 2 1 0 0 0 17 2 0

Plan de Ayala 1 2 0 0 0 0 27 3 0

Presidente Alemán

PR24 36 43 1 1 1 20 254 3

Remolino PR 158 128 21 0 0 2 33 98 34

Riachuelo 7 8 2 1 2 2 24 12 4

Santa Lucía 15 7 5 0 0 0 19 11 2

Santiago 9 5 3 0 0 0 40 11 1

Tecolutla 8 9 3 0 0 0 28 7 2

Poza Rica-Altamira total 733 552 129 4 7 10 26 601 188

Total 39,650 20,642 2,032 358 2,678 7,032 28 3,377 274

35* In case of multiple reservoirs the information presented corresponds to the most representative reservoir.

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