Form 20-F - Pemex

1 20-F 1 FORM 20-FTable of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 20549 FORM 20-FANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934for the fiscal year ended December 31, 2016 Commission File Number 0-99 PETR LEOS MEXICANOS(Exact name of registrant as specified in its charter)Mexican PetroleumUnited Mexican States(Translation of registrant s name into English)(Jurisdiction of incorporation or organization)Avenida Marina Nacional No. 329 Colonia Ver nica Anzures11300 Ciudad de M xico, M xico(Address of principal executive offices)Jaime Jos del R o Castillo(5255) 1944 Marina Nacional No. 329 Torre Ejecutiva, Piso 38 Colonia Ver nica Anzures11300 Ciudad de M xico, M xico(Name, telephone, e-mail and/or facsimile numberand address of company contact person)Securities registered or to be registered pursuant to Section 12(b) of the Act.

2 NoneSecurities registered or to be registered pursuant to Section 12(g) of the Act. NoneSecurities for which there is a reporting obligation pursuant to Section 15(d) of the of Each Notes due 2018 Floating Rate Notes due 20189 1 4% Guaranteed Bonds due Guaranteed Notes due Notes due Notes due Notes due Notes due Notes due Notes due Notes due Guaranteed Bonds due Guaranteed Bonds due Bonds due Bonds due 20469 1 4% Global Guaranteed Bonds due Guaranteed Notes due Notes due Notes due Notes due Notes due Bonds due Guaranteed Bonds due Notes due Notes due Global Guaranteed Bonds due Guaranteed Bonds due Bonds due Bonds due Bonds due 2047 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities No If this report is an annual or transition report.

3 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (orfor such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and postedpursuant to Rule 405 of Regulation S-T ( of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

4 N/AForm 20- de 38801/05/2017 9:22 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of largeaccelerated filer, accelerated filer, and emerging growth company in Rule 12b-2 of the Exchange accelerated filer Accelerated filer Non-accelerated filer Emerging growth company If an emerging growth company that prepares its financial statements in accordance with GAAP, indicate by check mark if the registrant has elected not to use the extended transitionperiod for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. The term new or revised financial accounting standard refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, by check mark which basis of accounting the registrant has used to prepare the financial statements included in this GAAP IFRS as issued by the IASB Other If Other has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

5 Yes No Form 20- de 38801/05/2017 9:22 Table of ContentsTABLE OF CONTENTSItem of Directors, Senior Management and Advisers5 Item Statistics and Expected Timetable5 Item Information5 Item on the Company18 Item Staff Comments132 Item and Financial Review and Prospects132 Item , Senior Management and Employees173 Item Shareholders and Related Party Transactions201 Item Information203 Item Offer and Listing207 Item Information207 Item and Qualitative Disclosures About Market Risk216 Item of Securities Other than Equity Securities228 Item , Dividend Arrearages and Delinquencies229 Item Modifications to the Rights of Security Holders and Use of Proceeds229 Item and Procedures229 Item Committee Financial Expert232 Item of Ethics232 Item Accountant Fees and Services232 Item from the Listing Standards for Audit Committees233 Item of Equity Securities by the Issuer and Affiliated Purchasers233 Item in Registrant s Certifying Accountant233 Item Governance233 Item Safety Disclosure233 Item Statements234 Item Statements234 Item 20- de 38801/05/2017 9.

6 22 Table of ContentsPetr leos Mexicanos and its seven subsidiary entities, which we refer to as the subsidiary entities, Pemex Exploraci n y Producci n (PemexExploration and Production), Pemex Transformaci n Industrial ( Pemex Industrial Transformation), Pemex Perforaci n y Servicios ( Pemex Drilling andServices), Pemex Log stica ( Pemex Logistics), Pemex Cogeneraci n y Servicios ( Pemex Cogeneration and Services), Pemex Fertilizantes (PemexFertilizers) and Pemex Etileno ( Pemex Ethylene), comprise the state oil and gas company of the United Mexican States, which we refer to as leos Mexicanos is a productive state-owned company of the Federal Government of Mexico, which we refer to as the Mexican Government, andeach of the subsidiary entities is a productive state-owned subsidiary of Mexico.

7 Each of Petr leos Mexicanos and the subsidiary entities is a legalentity empowered to own property and carry on business in its own name. In addition, a number of subsidiary companies that are defined in Note 1 andlisted in Note 4 to our consolidated financial statements incorporated in Item 18, which we refer to as our subsidiary companies, are incorporated intothe consolidated financial statements; these subsidiary companies are also identified with their corresponding ownership percentages in Consolidated Structure of Pemex on page 4. As further described under Item 4 Information on the Company History and Development Corporate Reorganization, the seven new subsidiary entities assumed, on or prior to, November 1, 2015, all of the rights and obligations of the priorsubsidiary entities of Petr leos Mexicanos Pemex -Exploraci n y Producci n( Pemex -Exploration and Production), Pemex -Refinaci n( Pemex -Refining), Pemex -Gas y Petroqu mica B sica( Pemex -Gas and Basic Petrochemicals) and Pemex -Petroqu mica( Pemex -Petrochemicals).

8 References to the subsidiary entities prior to this corporate reorganization refer to Pemex -Exploration and Production, Pemex -Refining, Pemex -Gas andBasic Petrochemicals and Pemex -Petrochemicals. Petr leos Mexicanos, the subsidiary entities and the subsidiary companies are collectively referred toas Pemex or we. See Item 4 Information on the Company History and Development Energy Reform for more herein to $, $, dollars or dollars are to United States dollars. References herein to pesos or Ps. are to the legalcurrency of Mexico. References herein to euros or are to the legal currency of the European Economic and Monetary Union. References herein to pounds or are to the legal currency of the United Kingdom. References herein to Swiss francs or CHF are to the legal currency of the SwissConfederation.

9 References herein to Japanese yen or are to the legal currency of Japan. References herein to Australian dollars or AUD areto the legal currency of Australia. The term billion as used herein means one thousand consolidated financial statements included in this annual report were prepared in accordance with International Financial ReportingStandards as issued by the International Accounting Standards Board. We refer in this report to International Financial Reporting Standards as issuedby the International Accounting Standards Board as IFRS. In addition, these financial statements were audited in accordance with the InternationalStandards on Auditing, as required by the Ley del Mercado de Valores (Securities Market Law) and the Disposiciones de car cter general aplicables alas emisoras de valores y a otros participantes del mercado de valores (General Provisions applicable to issuers of securities and other participants inthe securities market) in each case, of Mexico, for purposes of filing with the Comisi n Nacional Bancaria y de Valores (National Banking andSecurities Commission, or the CNBV) and the Bolsa Mexicana de Valores, de (Mexican Stock Exchange, or the BMV), and in accordancewith the standards of the Public Company Accounting Oversight Board (United States)

10 , or PCAOB, for purposes of filings with the Securities andExchange Commission, or the regulations of the SEC do not require foreign private issuers that prepare their financial statements on the basis of IFRS to reconcile suchfinancial statements to United States Generally Accepted Accounting Principles, which we refer to as GAAP. Accordingly, while we have in thepast reconciled our consolidated financial statements prepared in accordance with Normas de Informaci n Financiera Mexicanas (Mexican FinancialReporting Standards, or Mexican FRS) to GAAP, those reconciliations are no longer presented in our filings with the SEC. We do, however,continue to provide the disclosure required under the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 932 Extractive Activities Oil and Gas (which we refer to as ASC Topic 932), as this is required regardless of the basis of accounting on which weprepare our financial 20- de 38801/05/2017 9:22 Table of ContentsWe maintain our consolidated financial statements and accounting records in pesos.