Doing Business with Pemex

Offshore Technology Conference
May, 2013
Content
PEMEX in
Context
Achievements
Challenges
Financials
Strengthening
of the Oil and
Gas Industry
International Positioning
452.9
America’s Top 15 Corporations based on Revenues
446.9
(US$MMM)
13
245.6
237.3
150.3
145.9
147.6
143.9
137.5
136.3
127.2
126.7
126.6
125.1
In terms of revenue PEMEX is one of the leading companies in America and the World.
World Ranking
2009
2010
2011
2012
31
64
49
34
Source: Fortune 500 ranking 2012
122.7
Relative position of PEMEX in the Mexican
Corporate Sector (1/2)
US$MM
REVENUE 2012
139,12 58,967
2
143,04
4
PEMEX's revenues are higher than the
total of the top 5 companies in the
Mexican Stock Exchange (BMV),
however, PEMEX´s EBITDA is 47%
higher than the sum of all the listed
companies. This shows good cost
structure and operational efficiency.
31,805
18,130
15,229
14,990
TOP 4 America Walmart Femsa
IPC
Movil México
Alfa
CEMEX PEMEX*
79,781
EBITDA 2012
54,16219,849
3,508
IPC
3,103
2,824
America Banorte Walmart Femsa
Movil
México
2,274
Grupo
Modelo
2,183
2,049
CEMEX
Source: Bloomberg and PEMEX 2012 Financial Information.
*) Includes negative IEPS credit.
KOF
2,025
1,944
Televisa Peñoles
1,846
12,557
Alfa
Others
PEMEX
Relative position of PEMEX in the Mexican
Corporate Sector (2/2)
US$MM
23,900
CAPEX 2012
19,162
9,420
1,129
IPC
America
Movil
Femsa
1,115
868
Walmart Peñoles
México
801
Minera
Frisco
741
KOF
609
CEMEX
587
560
Liverpool
Alfa
449
2,883
Mexichem Others
PEMEX
PEMEX invests more than double the amount of what the largest company in the Mexican
Stock Exchange invests, furthermore Pemex invests an amount higher to the sum of the total
investment made by all the companies listed in the Mexican Stock Exchange .
Source: Bloomberg and PEMEX 2012Audited Financial Information.
Key Player in the World Oil & Gas Industry
Top 5 Crude Oil Producers
(Mbd)
12,000
Top 5 Crude Oil Exporters to the USA
(Mbd)
2500
Saudi
Aramco
10,000
2000
8,000
1500
6,000
4,000
NIOC
CNPC
KPC
Canada
Saudi
Arabia
Mexico
Venezuela
1000
Pemex
2,000
500
0
0
 5th largest crude oil producer
Nigeria
 3rd largest crude oil exporter to the
USA
 13th in crude oil reserves, a strong position
considering the company's organic growth.
 15th in product sales.
(1) Source: Petroleum Intelligence Weekly (PIW) 2012, The World’s Top 50 Oil Companies.
(2) Source: U.S. Energy Information Administration, U.S. Crude Oil Imports by Country 2011.
Strategic Importance to Mexico
Taxes and Duties
(US$MMM)
110
38.0%
35.4%
36.9%
40.0%
31.0%
90
70
56
62
33.7%
63
57
50
32.9%
33.7%
69
35.0%
30.0%
25.0%
53
20.0%
42
15.0%
30
10.0%
10
-10
5.0%
2006
2007
2008
2009
Taxes and Duties
2010
2011
2012
% the Government Income
Revenues from the oil and gas industry as % of the GDP
2006
2007
2008
2009
2010
2011
2012
8.3%
7.8%
8.7%
7.4%
7.5%
7.7%
7.6%
Source: SHCP and PEMEX 2012Audited Financial Information.
0.0%
Content
PEMEX in
Context
Achievements
Challenges
Financials
Strengthening
of the Oil and
Gas Industry
Stable Production
Mbd
2,607 2,578 2,567 2,552 2,572 2,558 2,525 2,547 2,537 2,540 2,541 2,561
308
316
322
332
330
342
346
321
325
319
325
332
835
830
835
839
845
784
777
826
832
831
826
848
1,464
1,432
1,410
1,382
1,396
1,431
1,402
1,400
1,380
1,390
1,390
1,381
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Extra Light
Light
Heavy
Significant operational efforts have been made to
stabilize production
Exploration & Production Strategy 2012
Increase Production of Existing Fields
Mbd
420
350
280
210
140
70
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Stabilization of the Cantarell Asset
Mbd
-2.79%
Nov
Dec
Ogarrio
Terra
Ixtoc
Homol
Tizon
May
Teotleco
Kab
Yaxche
Sihil
Cantarell's Production
(Mbd)
-1.36%
-1.16%
685
558
501
454
2009
2010
2011
2012
Average Monthly Decline
Rate
-0.17%
Additional Production from New Fields
Mbd
45
36
27
18
9
0
Kuil
Tsimin
Pareto
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Production and F&D Costs
Production Costsa,b
USD @ 2012 / boe
Finding and Development Costsc,d
USD @ 2012 / boe
6.44
5.10
2007
2008
5.09
5.38
2009
2010
6.12
2011
6.84
12.17
2012
Production Costs1
USD @ 2011 / boe
2007
11.27
2008
16.13
13.77
13.24
12.48
2009
2010
2011
2012
Finding and Development Costs2,3
USD @ 2011 / boe
Pemex
6.12
Total
6.57
Statoil
7.19
Exxon
9.45
Conoco
9.70
BP
10.08
Eni
10.86
Shell
11.0
Petrobras
12.89
Chevron
13.98
a)
b)
c)
d)
Shell
BP
Total
Exxon
Conoco
Petrobras
Pemex
Eni
Chevron
Statoil
Data in real terms after adjustment for the effect of inflation. (1)
Source: 20-F Form 2011.
(2)
PEMEX Estimates- 3-year average for all companies.
Includes indirect administration expenses.
(3)
9.71
11.85
12.86
13.92
14.24
14.85
16.13
18.71
21.47
27.99
Source: Annual Reports and SEC Reports 2011.
Estimates based on John S. Herold, Operational Summary, Annual Report and SEC
10
Reports 2011.
All estimates in real terms after considering a specific price deflator for the oil and
gas industry according to the Cambridge Energy Research Associates (CERA) 2011.
Sustained Increase of the Reserve
Replacement Rate
Reserves Replacement Rate
140%
120%
100%
80%
60%
40%
20%
0%
128.7%
103.9% 107.6%
102.1%
56.9%
59.2%
22.7%
26.4%
2005
2006
59.7%
41.0%
2007
65.7%
71.8%
77.1%
2009
2010
1.5
2005
1.3
1.4
2006
2007
85.8%
101.1% 104.3%
50.3%
2008
1P
Exploration CAPEX
U.S.$Billion
128.0%
2012
2013
3P
2.4
2008
2011
The 1P Reserve
Replacement Rate
has been above
100% for two
consecutive years
2.3
2009
“E” stands for estimated.
“P” stands for preliminary.
2.0
2010
2.2
2011
2.5
2.6
2012
2013 E
11
New E&P Business Model: Integrated
Contracts
First round (2011):
Mature Fields
South Region
3 Blocks
Expected Incremental
Production: 55 Mbd
Integral service
contracts with
performance
incentives
1) Execution Capacity
2) Technology Transfer
3) Investment
4) Production
Second round (2012):
Mature Fields
North Region
5 Blocks
Expected Incremental
Production: 70 Mbd
Achievements in Downstream
Business
Line
Petrochemicals
Project
Joint Venture
with Mexichem
Status
On January 2013,
the PEMEX´s Board
of directors signed
the agreement to
launch the joint
venture with
Mexichem in order
to increase the
production of vinyl
chloride.
Refining
Minatitlan
PEMEX concluded
the stabilization
of the Minatitlan
refinery which
helped improve
the refining
margin of the
National Refining
System (NRS),
through higher
process of heavy
crude and higher
output of light
and mid
distillates.
Improvement of
Refining System
The MDO (Operating
Improvement Program)
aims to capture
economic benefits in
the operation of
refineries by
incorporating
improvements in
operating performance
and the implementation
of practical measures.
PEMEX has identified
371 opportunities with
an estimated value of
MMUS$ 1,898.5 and has
captured MMUS$ 430.4
so far.
Gas and Basic
Petrochemicals
Los Ramones
The objective is to
develop natural gas
infrastructure
projects in order to
connect U.S.
natural gas
reserves and
pipelines within
Mexico. In January
the Board
authorized the two
phase project.
Phase 1 will begin
operations at the
end of 2014.
Content
PEMEX in
Context
Achievements
Challenges
Financials
Strengthening
of the Oil and
Gas Industry
Mexico has Great Oil Potential
Producing Basins
MMMboe (billion barrels of oil equivalent)
Oil and Gas
Gas
Cuenca
Southeastern
Burgos
Sabinas
TampicoMisantla
Deep Sea
Exploration
Gulf of
México
Yucatán
Platform
Veracruz
Acum.
Prod.
Prospective
Resources
Reserves
1P
45.4 12.1
2P
18.0
3P
A significant portion of
PEMEX’s great potential lies
on conventional hydrocarbon
reserves
No
Conv.
24.4 20.1
Tampico
Misantla
6.5
1.2
7.0
17.4
Burgos
2.3
0.4
0.5
0.7
2.9 15.0*
Veracruz
0.7
0.1
0.2
0.3
1.6
0.6
Sabinas
0.1
0.0
0.0
0.1
0.4
9.8
Deep Waters
0.0
0.1
0.4
1.7 26.6
Yucatán
Platform
Southeastern
Conv.
Total
2.5
34.8
0.5
55.0 13.9
26.2
44.5 54.6
60.2
*Includes Burgos Mesozoic & Burros-Picachos
Development
and Exploitation
Projects
Exploratory
Projects
PEMEX’s Production Outlook
Mbd
3,000
Historical
Forecast
Integrated
Contracts
3,000
Ku-Maloob-Zaap
Tsimin Xux
Ayatsil Tekel
Aceite Terciario del Golfo
Cantarell
2,000
Development
Integrated
Contracts ATG
1,000
Exploitation
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Integrated Contracts: Chicontepec (ATG)
Area
Accumulated
Production
3P
Reserves
Prospective
Resources
Type of
Hydrocarbon
(km2)
(Mboe)
(MMboe)
(MMboe)
°API
Pitepec
230
94
1,048
252
32 - 38
Soledad
125
40,376
134
128
32 – 37
Amatitlán
230
393
993
252
34 – 44
Miquetla
112
11,084
248
86
35
Humapa
128
588
341
157
27
Miahuapan
128
43
431
101
33
Blocks
Call for Bids
12/20/12
Bid Packages
Sale Deadline
06/07/13
Prequalifying
Periord
05/27/13
06/14/13
Awarding
07/11/13
Chicontepec is located in the states of Veracruz and Puebla, within
the Tampico-Misantla basin. Its total reserves are over 17 MMMboe,
representing about 40% of Mexico’s 3P reserves.
Contract
Signing
07/15/13
09/20/13
Activities in Deepwaters
Total investment 2002-2012: 69
billion pesos.
3D seismic acquisition: 124,790
km2.
Wells Drilled: 25, 14 of which are
producers.
Certified 3P reserves: 1,677
MMboe.
Success rate ≈ 56%.
PEMEX has established several
collaboration agreements with
Exxon, Shell, BP, Petrobras, Intec,
Heerema, Pegasus, etc.
The Trion-1 and Supremus-1 wells have increased certainty towards
the recovery of prospective resources in the Perdido Area project,
which have been estimated at up to 8 billion barrels of oil
equivalent.
Pemex is Preparing to Develop Shale
Resources
 PEMEX has identified 175 exploratory
opportunities in 5 Plays
 Through different studies, PEMEX has
estimated a total amount of 60.2 billion BOE
of prospective resources of Shale Gas/Oil
Chihuahua
Burro-Picachos
Burgos MZ
Burro-Picachos
 The Habano-1 and Emergente -1 wells have
verified the continuation of wet gas and dry
Condensates
gas zones in the Eagle Ford play
Gas
Dryseco
Gas
Gasy condensado
&
Gas
Sabinas
República Mexicana
Aceite
Oil
Gas y aceite en
estudio
TampicoMisantla
 The Percutor-1 well, producing dry gas,
confirmed the continuation of the Eagle Ford
play into the Sabinas Play
Aceite
Gas y condensado
Burgos MZ
Gas seco
Veracruz
Gas y aceite en
estudio
TampicoMisantla
os
0
Veracruz
200
400
 The Anhelido -1 well proved the concept of
Shale Oil in the Upper Jurassic in Burgos Basin
800 Kilómetros
 Approximately 90% of total shale prospective
resources in the Tampico-Misantla Basin are
liquid hydrocarbons
Industrial Processes
Refining
Operational,
administrative and
structural
improvements
Capture Economic
Opportunities
Gas and Basic
Petrochemicals
Expand the pipeline
network in the
northern and central
regions of Mexico
Increase processing
and transportation
capacity of natural
gas
Petrochemicals
Execution and
development of new
business models
Foster the growth of
the most profitable
chains
Content
PEMEX in
Context
Achievements
Challenges
Financials
Strengthening
of the Oil and
Gas Industry
Financial Highlights (Audited)
2011
2012
Billion
Pesos
Total Revenues from
Sales and Services1
2011
2012
Billion
Dollars
Variation
1,558.4
1,646.9
5.7%
111.4
126.6
Gross Income
779.7
814.4
4.5%
55.7
62.6
Operating Income
861.3
905.3
5.1%
61.6
69.6
Income before Taxes and
Duties
767.7
905.2
17.9%
54.9
69.6
Taxes and Duties
874.6
902.6
3.2%
62.5
69.4
Net Income (loss)
(106.9)
2.6
102.4
(7.6)
0.2
EBITDA2
1,071.8
1,147.4
7.1%
76.6
88.2
(1) Excludes IEPS.
(2) Earnings before interests, taxes, depreciation and amortization.
Evolution of PEMEX´s Results
US$MMM
13.6%
REVENUES
126.6
104.5
101.5
98.2
111.4
80.6
2007
2008
2009
2010
2011
In 2012 total revenues
were the highest in the
history of PEMEX, as a
result of the stability of our
production platform, as
well as in international oil
prices
2012
15.1%
EBITDA
88.2
77.0
76.6
71.6
EBITDA in 2012 is proof of
PEMEX’s ability to generate
cash flow, and its high
profitability
65.6
48.1
2007
2008
2009
2010
2011
2012
Investment Budget
U.S. Billion Dollars
30.4
25.3
4.4
2007
2.0%
Pemex-Gas and
Basic
Petrochemicals
17%
Pemex-Refining
79%
PemexExploration and
Production
14.9
19.9
2006
Pemex-
2.0% Petrochemicals
19.1
18.6
13.8
27.3
23.9
21.7
15.7
30.0
2008
2009
2010
2011 2012 P 2013 E 2014 E 2015 E 2016 E
 Figures are nominal and may not total due to rounding.
 Includes upstream maintenance expenditures.
 “E” means Estimated, and “P” means Preliminary. For reference purposes, U.S. dollar- Mexican peso exchange rate
conversions have been made at the following exchange rates, Ps.12.9/U.S.$1 for 2013 and beyond years.
 Includes complimentary non-programmed CAPEX.
Financing with the Balance
Billion Dollars
Net Indebtedness as % of CAPEX
26%
14%
24%
8%
14%
13%
2011
2012
2013*
0%
50
2006
2007
2008
2009
2010
40
-41%
30
20
10
15.6
13.8
19.3
14.9
5.1
2
5.3
0
25.0
23.9
21.7
19.1
1.6
3.4
3.3
0
-6.4
-10
2006
2007
2008
2009
Net Indebtedness
•
•
•
2010
2011
2012
2013*
CAPEX
The investment budget of PEMEX has gradually increased
The use of internal resources remains the main source of funding
PEMEX is seeking new alternatives to optimize the use of capital
Source: PEMEX Financial Statements
* Estimated
25
Expected Sources and Uses of Funds 2013
U.S. Billion Dollars
Price: 85.0 USD/b
Exchange rate: Ps. 12.9/USD
Crude oil production: 2,550 Mbd
Crude oil exports: 1,184 Mbd
Sources
Uses
9.7
25.3
39.6
22.5
6.4
7.9
7.4
Initial Cash
6.7
Resources from
Operations
Financing
Total
Total Investment Debt Payments
(CAPEX)
Net Indebtedness: 3.3 USD
Final Cash
Approved Financing Program 2013
Financing Program 2013
Source
100% = 9.7 billion dollars
10.2%
15.3%
40.8%
Programmed
USD
Billion
International Markets
4.0 – 5.0
Domestic Market
2.5 – 3.0
Export Credit Agencies (ECAs)
1.5 – 2.0
Others
1.0 – 1.5
25.5%
International Markets
Domestic Markets
ECAs
Others
Total Issuance
9.7
Total Debt Payment
6.4
Net Indebtedness for the year
3.3
Content
PEMEX in
Context
Achievements
Challenges
Financials
Strengthening
of the Oil and
Gas Industry
in Mexico
Strengthening of the Oil and Gas Industry
(1/2)
Actual
Structure
Corporate
Organizational
Restructuring
New
Structure
Standardize Processes
Higher Efficiency
Better Accountability
Expedite Decision-Making Process
Higher
Profitability
Strengthening of the Oil and Gas Industry
(2/2)
New Regulatory
System
Increase Access to
Adequate and Low
Cost Energy
Joint Ventures &
Alliances
Energy Reform
2nd Semester 2013
Market Oriented
Framework
Generate Value
Attract Capital to
Exploit the Country's
Vast Hydrocarbon
Resources
Conclusions
Strategic
presence and
positioning
Favorable cost
structure &
solid credit
ratios
Strengthened
business model
Significant
productive
potential
Investor Relations
(+52 55) 1944 - 9700
[email protected]
www.pemex.com
Integrated Contracts: Mature Fields
Company
Offered Rate
US$/b
Min. Investment
US$MM
Magallanes
Petrofac Facilities Mngt. Ltd.
5.01
205
Santuario
Petrofac Facilities Mngt. Ltd.
5.01
117
Dowell Schlumberger
9.40
33
Company
Offered Rate
US$/b
Min. Investment
US$MM
Cheiron Holdings Limited
5.01
33
Panuco
Petrofac Facilities Mngt. Ltd.
- Dowell Schlumberger
7.00
35
Tierra
Blanca
Monclova Pirineos Gas –
Alfacit del Norte
4.12
24
San Andrés
Monclova Pirineos Gas –
Alfacit del Norte
3.49
24
Petrofac Facilities Mngt. Ltd.
7.90
50
Round
Carrizo
Field
Altamira
2nd
Arenque
55
70
Mature fields in the South and
North Regions
Mature Fields in the North
Region and Chicontepec
Deep Waters
2011
2012
Beyond 2012
Incremental Production (Mbd)
1st
Field
Petróleos Mexicanos Debt Issuance
During 2013, PEMEX will be a frequent and predictable issuer in the local market, by
establishing a quarterly issuance program
Type of Issuance
(Figures are stated in billion
pesos)
First
Quarter
Fixed Rate GDN (2024)
Variable Rate (reopening
PEMEX 12)
2.5
Second
Quarter
Third
Quarter
Fourth
Quarter
TOTAL
10.0
5.0
5.0
20.0
2.5
Variable (new 2018)
TOTAL
2.5
12.5
5.0
2.5
2.5
5.0
7.5
7.5
30.0
• A new benchmark bond with fixed rate will be issued, with an initial issue of approximately 10 billion pesos,
reopening every quarter until a total amount of approximately 40 billion pesos is reached (these type of bonds
could be part of our GDN placement programs).
• In regard to issuances bearing variable interest rates, during the second quarter of 2013, a reopening for
approximately 2.5 billion pesos will be issued under the ticker symbol PEMEX 12.
• During the third quarter of 2013, a new 5-year bond bearing variable interest rate will be issued and will be
reopened on the fourth quarter of the same year, and for the next five quarters for approximately 2.5 billion
pesos each quarter.
34
Activities in shale formations
2010
2011
2012
2013
Emergente-1
md*
Piedras
Negras
3757
Nomada-1
Montañes-1
Nómada-1
Nuncio-1
Montañés-1
Percutor-1
3026
Habano-1
Emergente-1
Percutor-1
Chucla-1
Sabinas
Durían-1
Serval-1
Habano-1
2867
Nuevo
Laredo
Axochitl-1
Arbolero-1
3442
Monclova
Anhélido-1
Producing wells
Oil
Dry gas
MONTERREY
Wet gas
In progress
Unproductive well
Prospective areas
Oil
Gas & Condensates
Dry Gas
Galaxia
3D
Chucla-1
3857
Reynosa
Dry gas
Burgos
Gas & condensates
Oil
Anhélido-1
Golf of
México
Not successful
In completion
Drilling in progress
md*= meters deviated
Durían-1
2048
Gama-1
Habano-2
1507
Habano-71
100
3
Activities in deep waters
Water depth (mts)
Completed wells
Natural Gas
Oil field
Exploratory
statistics in
the GOM
Not successful
Drilling in progress
3
Natural Gas Project
Natural gas
price ≈ 2.56
USD/MMBtu
↑ Current
demand
↑ Expected
demand
- Restricted
supply
- Saturated
transport
infrastructure
Demand
and supply
Imbalances
Main issues:
regional
problems
The west central
region of the
country is the
main affected
Objective: Develop natural gas
infrastructure projects (pipelines
and compressor stations) in
order to connect natural gas
reserves and pipelines in the U.S
within Mexico (north west, north
east and central).
Historical balance of debt
Consolidated debt (1)
Balances at December 31 of each year
US$ billion
52.2
46.1
2006
2007
42.8
2008
47.9
2009
(1) Does not include accrual interest
(*) Estimated.
53.2
55.3
2010
2011
59.6
61.3
2012
2013*
Composition of Debt as of December 31,
2012
Outstanding Debt US$59.6 billion(1) as of December 31, 2012
By currency*
2%
Dollar
0%
By interest rate
Fixed
Euros
3%
3%
2%
Floating
UDIS
16%
British Pounds
31%
Yens
9%
65%
Pesos
69%
Swiss Francs
Australian
Dollar
By currency exposure*
By instrument*
1% 3%
Cebures
10%
Dollar
Pesos
19%
Euro
ECAs
13%
55%
18%
1%
Int. Bonds
Int. Banl Loans
Domestic Bank
Loans
Others
(*) does not include accrual interest
79%
Maturity Profile
US$ billion
Maturity Profile – Consolidated debt*
Outstanding Debt US$59.6 billion(1) as of December 31, 2012
9.8
8.1
6.1
6.0
5.1
4.8
5.1
4.5
3.5
4.2
3.3
3.1
1.3
0.5
-
-
0.3
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1
8.1
5.1
4.8
6.0
4.5
3.5
4.2
* Does not include accrual interest
Note: Sums may not total due to rounding.
3.3
5.1
3.1
0.5
-
1.3
-
0.3
2028
→
9.8