Moving forward with the internal transformation process and evaluating the opportunities presented by the new framework

Transcription

1 Moving forward with the internal transformation process and evaluating the opportunities presented by the new framework PEMEX Investor Day New York December 4, 2015 EMILIO LOZOYA AUSTIN Chief Executive Officer

2 Energy Reform 21 laws New Regulatory Framework 26 Rules of Implementation Strengthening CRE and CNH Institutions Creation of: ASEA, CENACE, CENAGAS, FMP State-owned Productive Companies PEMEX and CFE Round Zero Rounds Round One 1

3 II. PEMEX TODAY 2

4 New Legal Framework Transforming PEMEX New corporate governance New fiscal regime Change in Strategy Managerial autonomy Budgetary autonomy New regime for internal control New compensation policy New procurement regime Strategic alliances Round Zero PEMEX: A competitive firm Pension fund restructuring Change in Corporate Structure Cultural Change A L I G N 3

5 Transforming PEMEX: Strategy Change in strategic vision Leading competitor in each relevant market Choice of markets Choice of partners Choice of business model in each market 4

6 Transforming PEMEX: New Corporate Structure Exploration and Production Optimal output Sustainable growth of reserves Downstream Operational efficiency for competitiveness Focused growth in selected markets New Subsidiaries Cogeneration and Services Drilling and Services Logistics Ethylene Fertilizers 5

7 Transforming PEMEX: Corporate Culture Cultural change Values, attitudes and behavior for competitiveness Strengthen leadership and develop human capital Meritocratic compensation policy Career plans PEMEX s Corporate University Continuous acquisition of skills and competencies 6

8 III. NEW E&P PARTNERSHIP OPPORTUNITIES 7

9 Low Production and Replacement Cost Production Costs a,b 2013 / boe Finding & Development Costs c,d,e USD / boe f Production Costs 1 USD / bpce Finding & Development Costs 2,3,4 USD / bpce PEMEX 2013 PEMEX 2014 Statoil Total Exxon Eni Conoco BP Shell Chevron Petrobras PEMEX 2013 BP Exxon Conoco PEMEX 2014 ENI Chevron Petrobras Statoil Shell Total a) Data in real terms after adjustment for the effect of inflation. b) Source: 20-F Form 2013 c) PEMEX estimates 3 years average d) Includes indirect administration expenses. e) Proved Reserves. f) For analysis purposes, the 2014 production cost 8.22 USD/boe is estimated at 2013 USD = 8.09 USD/boe 1. Source: Annual Reports and SEC Reports Estimates based on John S. Herold Company Performance Metrics, years average performance calculations 4. Proved Reserves 8

10 New era in Mexico implies significant opportunities to grow Million barrels per day Stage 3 P r o d u c t i o n Stage Round Zero PSCs 1 Stage Round Zero plus future rounds PSCs Shallow water Extra-heavy oil Non-conventional Southern Region Round Zero plus future rounds PSCs Extra-heavy oil Non-conventional Deepwater Time 1 PSC: Production Sharing Contracts Source: Pemex Exploration and Production 9

11 PEMEX still concentrates a substantial amount of reserves and prospective resources Gas and oil basins 28.4 Basin Cumulative Prod. 1P (90%) Reserves 1 2P (50%) 3P (10%) Prospective resources Nonconv. Conv. Southeast Tampico Misantla Burgos Veracruz Sabinas Deepwater Total PEMEX Billion barrels of oil equivalent Total Mexico Non-conventional (shale oil and gas) 1) Reserves at January 1st, 2015; Includes permanent only permanent blocks Source: Pemex Exploration and Production Development and production projects Exploration projects 10

12 Round Zero: PEMEX s Assignments Surface area: 34.7 thousand mi 2 (90 thousand km 2 ) 83% of Mexico s 2P reserves 21% of Mexico s prospective resources Production platform: 2.5 MMbd for 20.5 years Source: SENER, CNH 11

13 Migrations of CIEPs and COFPs 1 Increasing execution capacity & Investment 2P Reserves (MMboe) 2 Expected Investment (USD billion) Fields First stage: 21 existing contracts First block Second block Poza Rica-Altamira and Burgos Assets 1, ATG and Burgos Assets 1 CIEPs: Integrated Exploration and Production Contracts; COPFs: Financed Public Works Contracts 2 MMboe: Million barrels of oil equivalent Source: Pemex Exploration and Production 12

14 Farm-outs Second stage: Farm-outs Mature fields Extra-heavy crude oil Deepwater (natural gas) Perdido Area 2P Reserves (MMboe) 1 Expected Investment 3 (USD billion) Fields Samaria, Ogarrio, Rodador, Cárdenas-Mora (Onshore) Bolontikú, Sinán, Ek & Balam (Offshore) Ayatsil-Tekel-Utsil Kunah-Piklis 1, Trión, Exploratus and Maximino 1 MMboe: Million barrels of oil equivalent 2 3P reserves 3 Expected investment associated to production of 2P reserves, preliminary estimates Source: Pemex Exploration and Production 13

15 Round One Expected Investment (USD million) Fields Deepwater Chicontepec & non-conventional Onshore, shallow water & extra-heavy crude oil Non-conventional gas 1,591 1 Perdido Area 3,222 1 South 2, , , Aceite Terciario del Golfo Asset Pit, Pohp, Alak, Kach & Kastelan Sabinas Basin Potential Annual Investment ( ): USD 8.5 billion 1 Prospective resources 2 2P reserves Source: Pemex Exploration and Production 14

16 Round One Calendar Areas and fields Shallow water exploration Shallow water extraction Mature Fields Deepwater and extra heavy oil Non- Conventional Chicontepec Bid Launch Date December 2014 February 2015 May 2015 Second Semester 2015 Data Rooms Open January 2015 February 2015 May 2015 Second Semester 2015 Areas 14 exploration contacts 9 fields in 5 contracts Source: SENER, CNH 15

17 IV. OTHER PARTNERSHIP OPPORTUNITIES 16

18 Gas Pipeline Projects in Mexico 13 Gas Pipelines length (2013): 11,142 km 11 Gas Pipelines new length : 19,436 km (1) Total Investment: USD 18,014 million (2) National gas pipelines Length (km) Investment (USD MM) Los Ramones 854 3, gas pipelines 1 Ramones Phase I Comprehensive strategy projects 2 Ramones Phase II 738 2,508 North-East 1,783 2, El Encino (Chih.) - Topolobampo (Sin.) 536 1,008 4 Sásabe - Guaymas Guaymas - El Oro El Oro - Mazatlán CFE new gas pipelines projects allocated Length (km) Investment (USD MM) 1,209 2, projects 2,310 5, projects 1,100 1,207 Total 4,619 9,786 International gas pipelines 10 Length (km) Investment (USD MM) 12 Agua Dulce -Frontera Tucson - Sásabe Total 297 1,233 Other projects 1,038 1,489 7 Tamazunchale Zacatecas Morelos Mayakán Chihuahua (3) Total 3,675 6,995 1) Includes projects from the Comprehensive Strategy, and the new 222 km from Jáltipan-Salina Cruz gas pipeline 2) Estimated 3) Chihuahua gas pipeline started operations on July

19 Other Opportunities Infrastructure Fertilizers Cogeneration Financial partners Strategic partners Strategic partners Financial partners Strategic partners Petrochemicals Strategic partners 18

20 V. NEW COMPANIES TO SUPPORT PEMEX 19

21 State-owned Productive Companies Objectives Take advantage of developed infrastructure to create new businesses. Subject to the strategic direction of PEMEX. State-owned productive subsidiaries will become affiliates when they: are self-sustainable; are self-sufficient; and have pension debt supported by operations 20

22 Current State-owned Productive Companies Ethylene Production, distribution and commercialization of ethylene by-products Fertilizers Production, distribution and commercialization of ammonia, fertilizers and its by-products Cogeneration & Services Holding company to invest and develop power generation projects Logistics Transportation and storage services of hydrocarbons, petroleum products and petrochemicals Drilling & Services Drilling, completion, work-over and well services 21

23 Investor Relations (+52 55)