JOGMEC Techno Forum 2013 PEMEX Exploración y Producción Subdirección de Distribución y Comercialización Gerencia De Operaciones Oil and Gas Projects in Mexico and Expectations for Japanese Technologies Mr. Carlos Lechuga May 7-8, 2013. Tokyo, Japan
MEXICO, A GREAT NATION Mexico is an open market economy and has a consolidated democracy Is the 12 th largest world economy By 2020 it could be among the first ten in the world Signed 44 commercial treaties, including the North America Free Trade Agreement (NAFTA) in 1994 Mexico hold the 11th largest proven oil reserves worldwide. It has more than 44 mmmboe of 3P reserves and 115 mmmboe of prospective resources. Its the third largest oil exporter to the U.S. According to the EIA, Mexico is 4 th in nonconventional resources worldwide, with 681 TCF The first two rounds of Integrated EP Contracts in 2010 and 2011 account for $4 billion dollars of investment in the first six years. The eight blocks that were awarded will reach at least 150 mbd towards 2020. In total, 30 companies participated in both bid rounds. 2
PEMEX, Mexico s National Oil Company PEMEX is the largest enterprise in Latin America Canada Mexico USA Brazil By Constitutional mandate, it is the only producer of hydrocarbons and refined products in Mexico is a fully integrated National Oil Company Objective: Maximize hydrocarbons economic value to contribute to the sustainable development of the country America
PEMEX includes complete value chain in the petroleum industry Exploration & Production Refining Gas and Basic Petrochemical Exploration Crude oil Natural gas First transformation of natural gas, methane, ethane, propane and naphtha Drilling, development & production Crude oil Gasoline Jet fuel Diesel Fuel oil Asphalts LPG Lubricants Natural gas LPG Ethane Natural gasolines Sulphur Polyethylene Ethylene Oxide Glycol Vinyl Chloride Ethylene Ammonia Methanol Export Customers (domestic market)
PEMEX, regulatory framework Mexican Constitution (Art. 25, 27 and 28) and its Regulatory Law of Article 27 regarding oil matters, establish the basis of PEMEX regulatory framework The purpose of PEMEX Law is to regulate the organization, operation, control and accounting of PEMEX and its Subsidiary Entities. Mexican Political Constitution Regulatory Law PEMEX Law The Regulatory Law of Constitutional Article 27 regarding oil matters establishes: The State shall carry out the activities exclusively entrusted to it in the strategic areas of petroleum, hydrocarbons and basic petrochemicals, through PEMEX and its Subsidiary Entities The objective of the National Hydrocarbons Commission is to regulate and supervise the exploration and extraction of hydrocarbons National Hydrocarbons Commission Board of Directors Chairman (Ministry of Energy) PEMEX The Board of Directors of PEMEX determines the organizational and operating structure of PEMEX for the best fulfillment of objectives and activities within its technical, commercial and industrial scope PEMEX is a decentralized entity with the mandate of production, legal capacity and its own property with the purpose to carry out exploration, exploitation, petroleum products and petrochemicals Exploration and Production Refining Gas and Basic
PEMEX, operating subsidiaries entities, international trading and financial results PEMEX P.M.I., Petroleos Mexicanos Internacional, S.A. de C.V. Imports and exports of crude oil and refined products Exploration and Production Refining Gas and Basic Exploration and production of hydrocarbons Production and commercialization of oil refining products Gas processing, production and marketing of gas and basic petrochemicals Production and commercialization of secondary petrochemicals 2011 results (mmusd) Sales Operating income Government take Assets Employment* 110,945 48,707 62,615 143,292 147.4 Source: Corporate Finance Office, Report to Mexican Stock Exchange *Thousands, PEMEX Statistical Yearbook 2011.
México and PEMEX in the internacional arena Petroleum Intelligence Weekly 2013 Internacional Ranking Crude oil production 2.8 million barrels/day a Crude oil reserves 11.4 billion barrels Gas production 4.4 bcf/day b Gas reserves 12.7 tcf México 6 11 9 21 PEMEX 5 13 17 36 a. Includes natural gas liquids and condensates. b. Considers only dry gas. 7
8 PEMEX is ranking as one of the most important oil companies Petroleum Intelligence Weekly 2013 11 10 9 8 7 6 5 4 3 2 1 The ranking is based on 6 financial and operative data from 2011: liquids production; liquids reserves; gas production; gas reserves; sales products and refining capacity.