enrique cornejo - ukti

Mexico Oil and Gas Industry Overview

Subsea UK, Aberdeen March 2015 1 Oil and Gas Industry Overview - Mexico

Enrique Cornejo – Head of Energy and Environment, UKTI Mexico

Oil and Gas Industry Overview - Mexico 2

Sources: PWC, Doing Business in Mexico 2015

Oil and Gas Industry Overview - Mexico 3

Mexico’s Oil & Gas Resources

· 9th largest oil producer

· 18th largest gas producer

· 4th largest unconventional reserves

Sources: International Energy Agency, RigZone, Mexican Ministry of Economy

4

• Investment from PEMEX alone is insufficient

• Unconventional plays make up the bulk of Mexico’s remaining reserves

Investment vs. Oil Production

Diagnosis of the Energy Sector, Mexican Presidency. Retrieved from Institutional Database of Petróleos Mexicanos, June 2013.

Oil and Gas Industry Overview - Mexico

Thou

sand

bar

rels

per d

ay

Investment in exploration and production

Petroleum production

Billi

on d

olla

rs

Data 2013: Average January – April in petroleum production

Mexican oil mix price for export (dollars per barrel)

5

Oil Production in Mexico, Brazil and Colombia

(thousands of barrels per day)

PEMEX

Oil and Gas Industry Overview - Mexico

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A sizeable industry (pre-reform)

Oil and Gas Industry Overview - Mexico

• Strong O&G service sector

• Many international service companies consider Mexico a high priority market

7 Oil and Gas Industry Overview - Mexico

A sizeable industry (pre-reform) • Increasing number of native service companies looking for partners / in some

cases aiming to become operators

8

Mexico’s Energy Infrastructure

Oil and Gas Industry Overview - Mexico

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US/Mexico Oil & Gas Activity

Oil and Gas Industry Overview - Mexico

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• Structural reforms, a result of the multi-party agreement “Pacto por Mexico”

• Energy Reform

• Round Zero and Round One – 2014/2015

Energy Reform: a new era for Energy production in Mexico

Oil and Gas Industry Overview - Mexico

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Mexican Oil and Gas overview

SENER

• Ministry of Energy

CRE

• Energy Regulator Commission

CNH

• Hydrocarbons National Commission

State Productive enterprises

• CFE • PEMEX

Oil and Gas Industry Overview - Mexico

Oil and Gas Industry Overview - Mexico 12

• Shallow Water

• Onshore

• Deep water

1P & 2P

• Fields already in exploration and production

Sources: SENER

Areas awarded to PEMEX in Round Zero

• PEMEX reserves place it in 5th amongst OIC’s.

Oil and Gas Industry Overview - Mexico 13

Sources: SENER

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Associations with PEMEX

(areas to migrate to contracts: 11 fields in 6 months and 11 for financing in Chicontepec and Burgos Area next year)

• Onshore and offshore mature fields

• Extra heavy oil marine fields

• Gas fields in deep water

• Perdido Area new discoveries

Sources: PEMEX

Opportunities with PEMEX in Round Zero

Oil and Gas Industry Overview - Mexico

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Round One: Reserves and Prospective Resources

Oil and Gas Industry Overview - Mexico

Source: Ministry of Energy

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Oil and Gas Industry Overview - Mexico

Round One: What? Where?

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Round One bidders

Oil and Gas Industry Overview - Mexico

Source: Reforma

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Oil and Gas Industry Overview - Mexico

Source: PWC

Round One timeline

UKTI Mexico

• 32 professional advisors -

organised in sector teams

• Main office located in the British

Embassy in Mexico City, and 3

regional commercial offices:

Guadalajara, Monterrey and

Tijuana

19 Oil and Gas Industry Overview - Mexico

20 Oil and Gas Industry Overview - Mexico

Source: PWC

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