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Investor Presentation - pemex.com

Investor PresentationDecember 2017 ContentA Snapshotof PEMEX UpstreamMidstream & DownstreamOverall Financial PerformanceBusiness Outlook11O&G: The Industry Moving the World According to the IEA, by 2040, crude oil demand is expected to grow 6% up to 103 MMbd, while natural gas consumption increases by 50%21 Btoe: billion tons of oil equivalent2 Includes geothermal, solar, wind, heat and electricity : Key world energy statistics & World Energy Outlook 2016, International Energy Agency, 55%12%12%21%O&GCoalBiofuels and wasteOtherWorld energy consumption 2014100% = andwasteOther Fuels2014 TotalConsumptionBtoeIndustryTransportOth er usesNon-energy use2 PEMEX: The Most Important Company in Mexico38th Crude oil producer98thlargest company27thTrading company in the worldMain producer of oil, gas and refined products in Mexico14th Refining company worldwideHolder of 95%of the country's 1P reservesKey player in hydrocarbons logistics infrastructureMore than 40,000 kmof pipelines15thL

O&G: The Industry Moving the World • According to the IEA, by 2040, crude oil demand is expected to grow 6% up to 103 MMbd, while natural gas consumption increases by 50%

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Transcription of Investor Presentation - pemex.com

1 Investor PresentationDecember 2017 ContentA Snapshotof PEMEX UpstreamMidstream & DownstreamOverall Financial PerformanceBusiness Outlook11O&G: The Industry Moving the World According to the IEA, by 2040, crude oil demand is expected to grow 6% up to 103 MMbd, while natural gas consumption increases by 50%21 Btoe: billion tons of oil equivalent2 Includes geothermal, solar, wind, heat and electricity : Key world energy statistics & World Energy Outlook 2016, International Energy Agency, 55%12%12%21%O&GCoalBiofuels and wasteOtherWorld energy consumption 2014100% = andwasteOther Fuels2014 TotalConsumptionBtoeIndustryTransportOth er usesNon-energy use2 PEMEX.

2 The Most Important Company in Mexico38th Crude oil producer98thlargest company27thTrading company in the worldMain producer of oil, gas and refined products in Mexico14th Refining company worldwideHolder of 95%of the country's 1P reservesKey player in hydrocarbons logistics infrastructureMore than 40,000 kmof pipelines15thLogistics company in the world by assetsLargest Tax ContributorMXN billionannual revenues18th Drilling company5th Producer of petrochemicals in Mexico 1st Producer of phosphates in LATAM9 Gas Processing Complexes74 Storage and distribution terminalsClose to 1,500tank trucks16 Ships with transportation capacity of 4,618 Mb1 Last five years average.

3 2 Source: Fortune 500 Operating platforms9,000 WellsDistribution of PEMEX s Reserves14 BasinReservesProspectiveResources21P(90% )2P(50%)3P(10%) (billion barrels of oil equivalent)Exploration ProjectsDevelopment and Exploitation ProjectsOil and GasGasVeracruzTampico-MisantlaBurgosSabi nasGulf of MexicoDeep Sea ExplorationYucatanPlatformSoutheasternPE MEX holds 95% of Mexico s hydrocarbon reserves1As of January 1, 2017. Numbers may not total due to resources assigned to PEMEX in Round ZeroNote : As of January 1, 2017. 1P includes discoveries, developments, revisions and replacement rate only considers new discoveries. Reflects reserve replacements conducted by PEMEX.

4 2017 Achievements5 Trion farm-out with BHP Billiton Consortium formed by PEMEX, Chevron and Inpexwas awarded Block 3 North in deep waters Joint venture with Air Liquidefor the supply of hydrogen to our Tula refinery Migration without a partner of the fields Ekand Balamin shallow waters PEMEX was awarded two blocks in shallow waters through consortia withDEA and Ecopetrol The first Open Season offered capacity was awarded to Tesoro Improvement in fiscal regime for fields that were non-profitable after taxes C rdenas-Mora & Ogarrioare PEMEX s first two onshore farm-outs with Cheironand DEAKey Highlights as of September 2017 6 Average production platform in line with the annual target of 1.

5 944 Mbd Accumulated net result increased by Divestiture of stake in Los Ramones II Norte gas pipeline Administrative, distribution, transportation and sales expenditures remained stable Accumulated operating income totaled MXN 174 billion (Jan Sep 2017) Uninterrupted fuel supply throughout the country despite hurricanes and earthquakes Implementation of crude oil hedging program to protect PEMEX s budget against falls in oil pricesContentA Snapshot of PEMEX UpstreamMidstream & DownstreamOverall Financial PerformanceBusiness Outlook72 Upstream: Current Status and Challenges88050100150200250300350 - 500 1,000 1,500 2,000 2,500 3,000 3,50020042005200620072008200920102011201 220132014201520161Q172Q173Q17 MXN bnMbdOther assetsKu-Maloob-ZaapCantarellE&P InvestmentCrude Oil Production PEMEX continues to be a main player in the O&G industry The challenge has been replacing Cantarell-a giant field that produced 2 million barrels of crude oil per day-to stabilize and eventually increase production1-44%+173%1 Includes non-capitalized maintenance.

6 Source : PEMEX 2017 Industry Cost Leader cost before taxesTaxes and DutiesProduction Costsa,b(USD / boe)2016 Benchmarking: Production Costs1 (USD / boe) MobilRoyal Dutch / ShellConnoco PhillipsEni Exploitationstrategiesfocusedonshallowwa tershaveallowedPEMEX tomaintainverycompetitiveproductioncosts ,ascomparedtomostofitspeers. Lowerproductioncostsprovidegreaterflexib ility, )Figures in nominal )Source: 20-F Form (2016, 2014 & 2012). : Annual Reports and SEC Reports : New Production Frontiers10 Deepwater Infrastructure1 Shale Potential21 Source: National Geographic2 Source: CNH with information from North Dakota Department of Mineral Resources, Oklahoma Geological Survey, Texas Railroad Commission, Bureau of Ocean Energy Management, Oil & Gas Journal Underinvestment and limited access to know-how has restricted intensive exploitation of new complex frontiersUpstream.

7 Business Plan Concentrates on assignments that are profitable after taxesBusiness Plan Scenario11 Aggressive farm-out program Development of fields that are profitable for the country and which, under similar fiscal conditions than privates, are profitable for PEMEX after taxes Incremental income from farm-out production is shared between PEMEX and the Federal Government Improved Scenario11 With profitability as its ultimate goal, the Business Plan contemplates increased production and investment through different business schemes such as JVs and farm-outs to maintain and gradually increase the production platform2,6012,5772,5332,5482,5222,4292, 2672,1541,9441,9511,9822,0172,1411952572 6731605001,0001,5002,0002,50020092010201 1201220132014201520162017201820192020202 1 Crude Oil Production1 MbdImproved(BusinessPlan)PEMEX production11111 Includes PEMEX s production -estimations sent to the Ministry of Finance on September 2017-and others -as considered in the Business Plan published in November.

8 Farm-outs at a glanceFarm-OutTrionC rdenas-MoraOgarrioNobilis-MaximinoAy n-Batsil7 clustersWinnerBHP Billiton(Australia) CheironHoldings Limited (Egypt)DEA Deutsche ErdoelAG (Germany)Will be part of a new bidding processInitial payment570125190To be definedTo be definedTo be definedAdditional royalty value4%13%13%To be definedTo be definedTo be definedCash tie-break payment (MMUSD) be definedTo be definedTo be defined3P Reserves (MMboe)4859354502359392 Type of HydrocarbonLight crude oilLight crude oilLight crude oilLight crude oilHeavy oilMedium LightoilType of FieldDeep watersOnshoreOnshoreDeep watersShallow watersOnshoreType of ContractLicenseLicense & Payment-In-KindLicense & Payment-In-KindProduction-sharing To be definedTo be defined12127 clustersUpstream.

9 Recent Developments (Trion & Block 3)TrionTrionBlocks awardedin Round WhiteMatamoros179 Km28 Km21134 BHP Billiton will invest up to USD billion before PEMEX makes additional contributions Joint operating agreement was signed on March 3, 2017 PEMEX expects to invest USD 600 million by the time initial production is achievedBlock 3 NorthPEMEX s AssignmentsTri n Farm-Out Round Deep Waters Oil and Gas Field 3D Seismic PerdidoFold Belt Block 3 Joint Venture with Chevron and Inpex The contract considers 3,374 work units, equivalent to USD million No wells were committed for this contract Contract was signed on February 28, 201713 Upstream.

10 Recent Developments (C rdenas-Mora & Ogarrio)C rdenas-Mora CheironHoldings offered a cash tie-break of USD million Daily average production: thousand barrels of oil equivalent per day (Mboed) USD million of PEMEX s previous investments were recognized 3P Reserves: million barrels of oil equivalent (MMboe) Total expected investment: USD million Deutsche ErdoelAG (DEA) offered a cash tie-break of USD million. Of this amount, PEMEX will receive USD 183 million Daily average production: Mboed PEMEX s previous investments: USD 373 million 3P Reserves: MMboe Total expected investment: USD million14 OgarrioMoraC rdenasRound rdenas-Mora and OgarrioExplorationblocksOgarrioUpstream: Upcoming Developments(Additional farm-outs)Nobilis-Maximino 3P Reserves: 502 MMboe Type of hydrocarbons: Light crude oil Water Depth: 3,000 meters (deep waters) Contract type: License Will be part of a new bidding process to be defined in 2018 3P Reserves: 359 MMboe Type of Hydrocarbons: Heavy crude oil Water Depth: 80 -170 meters (shallow waters) Contract type.


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