Deep water exploration and production

Round 2, fourth bidding call

Aldo Flores QuirogaDeputy Secretary of Energy for HydrocarbonsMexico

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Ciudad de México| 19 de julio | 2017

Content

1. Objectives

2. Areas

3. Contractual terms

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Contenido

1. Objectives

2. Areas

3. Contractual terms

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Round 2.4 seeks to expand deep-water offshore activities to:

1. Restore Mexico’s reserves

2. Scale up oil and gas production

3. Consolidate oil industry clusters

4. Attract investment and cutting edge technology, and createquality jobs

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Content

1. Objectives

2. Areas

3. Contractual terms

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The Five Year Plan is the basis for selecting Round 2.4’s blocks

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Round 2.4 includes 30 exploration y production blocks…

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…with 4,228 mmbcoe in prospective resources

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Surface area: 70,866 km2

27,680 mi2

Reserves include the full range of hydrocarbons, from crude oil todry gas

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Exploration blocks are distributed in the country’s main oilprovinces…

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Cinturón Plegado Perdido

CordillerasMexicanas

CuencaSalina

Plataformade Yucatán

…and interact with areas awarded in Round 1.1…

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…Round 1.2…

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…Round 1.4…

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…Round 2.1…

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…PEMEX areas…

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…and PEMEX farm-outs

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Additionally, Round 2.4 blocks have full 2D and 3D seismiccoverage

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Oil industry clusters promote development of regional value chains and infrastructure

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Oil industry clusters promote development of regional value chains and infrastructure

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Oil industry clusters promote development of regional value chains and infrastructure

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Oil industry clusters promote development of regional value chains and infrastructure

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Fuente: CNH y SENERRecurso prospectivo medio ajustado por riesgo, BDOE 2017

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25,725

9,866

15,859

3,860

1,947

6,6074,228

2,380

3,444

Recursos marinos totales Aguas Profundas Contratos (R1.4) Ronda 2.4Recursos documentados

No en PQ

Estimated offshore resources, total: 25,725 mmbcoe

Total offshore

Resources

Shallow Water

Deep Water

Pemex allocations

Contracts (R1.4)

Five Year Plan 2017 Round 2.4

Remaining in 5-Year

Plan

Documented for 5-Year Plan

Round 2.4 prospective resources are 64% of the Five Year Plan’s offshore resource total

Fuente: AIE

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Mexico must develop its complete oil and gas portfolio to achieve higher production levels

Deep Waters

Shallow Waters

Unconventional Terrestrial

Conventional Terrestrial

Existing Fields

Mexico´s production in the scenario of Reform of the AIE 2015-2040 (mmbpd)

Content

1. Objectives

2. Areas

3. Contractual terms

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Round 2.4’s contractual terms follow the Round 1.4 model

1. License contract to allow for greater operational efficiency

2. Exploration and production in the entire geological column

3. Aimed at companies with extensive experience in deep andultra deep waters

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The 35-year contract may be extended up to 15 years, during the commercial production phase

Phases in Round 2.4 contract

Phase Duration

(years)

Accumulated

Duration

National

Content

1. Exploration 4 to 10 10

3%

2. Evaluation Up to 3 13

3. Development22 to 28 35

4%

4. Commercial

Production10%

Extensions: 10 + 5 Up to 50

Summing up

1. Round 2.4 will attract investments for new oil and gasdiscoveries in a surface area 70,866 km2 large

2. Prospective resources of 4.228 million barrels are equivalent toalmost half of Mexico's proven reserves

3. Model contract provides certainty to both the Mexican Stateand industry participants

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