The opening Mexico s oil and gas market

Transcription

1 Tokyo 29 November 2016 The opening Mexico s oil and gas market Aldo Flores-Quiroga Deputy Secretary of Energy, Hydrocarbons Mexico

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3 Mexico is a strong global partner 12 free trade agreements with 46 countries 9 economic cooperation agreements 33 agreements on reciprocal Investment Promotion and Protection Active member in: 3

4 Flow 1. Why 2. How 3. Where we are 4. What s next

5 Flow 1. Why 2. How 3. Where we are 4. What s next

6 Declining oil output 4.0 Production 400 Million barrels per day Investment Billion pesos

7 Increasing natural gas consumption and imports

8 Increasing gasoline consumption and imports Gasoline and diesel consumption 42% 700 Million barrels per day % 11% 58% 0 Producción Nacional Importaciones

9 Flow 1. Why 2. How 3. Where we are 4. What s next

10 Legal and institutional transformation New legal framework New institutions Stronger regulators 22 laws 25 regulations Industrial safety and environment (ASEA) Natural gas pipeline operation and trade (CENACE) Oil stabilization fund (FMP) National Hydrocarbons Commission (CNH) Energy Regulatory Commission (CRE)

11 Five year plan for E&P

12 Policy planning mid and downstream Natural gas market liberalization Liquid fuels markets liberalization New storage requirements

13 Flow 1. Why 2. How 3. Where we are 4. What s next

14 Three E&P auctions so far 1. 1 Round 1.1 Exploration in shallow waters Round 1.2 Extraction in shallow waters Round 1.3 Extraction in onshore fields 2 Contracts awarded 3 Contracts awarded 25 Contracts awarded

15 More players 37 new companies 7 countries US $7 billion

16 Unprecedented seismic data coverage 2D data is 1.1x the distance (km) from Earth to the Moon 18 companies 3D data is 1.6x the surface (km2 ) of the United Kingdom 43 permits granted Est. investment US $2 billion 2.4x more seismic than ever before 16

17 A new industry structure under development Before After Sole operator Sole trader Sole company throughout the value chain Private sector is service provider Many operators Many potential traders Many companies throughout the value chain Private sector as operator and partner

18 Flow 1. Why 2. How 3. Where we are 4. What s next

19 Investment opportunities UPSTREAM MIDSTREAM DOWNSTREAM EXPLORATION AND PRODUCTION OF HYDROCARBONS EXPANSION OFGASPIPELINE NETWORK LIQUEFACTION AND COMPRESSION TERMINALS AND REGASIFICATION OF NATURAL GAS TERMINALS NATURAL GAS AND LP GAS COMMERCIALIZATION PETROCHEMICALS PRODUCTION DISTRIBUTION ANDSTORAGE NETWORKS GASOLINE AND DIESEL REFINING GASOLINE AND DIESEL PRODUCTION COGENERATION REFINERIES ANDGAS PROCESSING CENTERS RETAIL GASOLINE AND DIESEL 19

20 Deep-water auction scheduled for 5 December 2016 Round 1.4 Deep Waters License 10 blocks 10,889 mmboe 11 billion usd investment 24,000 km 2 (590 km 2 avg.) Super light and heavy oil, dry and wet gas

21 Pemex s first farm-out scheduled for 5 December 2016 Trion farm-out Deep Waters License 1 block mmboe 11 billion usd investment 1,285 km 2 Light and associated gas

22 Shallow water auction scheduled for 22 March 2017 Round 2.1 Shallow Waters PSC 15 blocks 8 blocks with identified fields 1,587 mmboe 44 billion usd investment 8,908 km 2 (590 km 2 avg.) Super light oil and wet gas

23 Onshore auction scheduled for 12 July 2017 Round 2.2 Onshore License 12 E&P blocks 39 identified fields 643 mmboe 1.9 billion usdinvestment 5,000 km 2 (416 km 2 avg.) Wet & dry gas

24 Onshore auction scheduled for 12 July 2017 Round 2.3 Onshore License 14 E&P areas 25 identified fields 328 mmboe 1 billion usd investment 2,595 km 2 (185 km 2 avg.) Wet & dry gas

25 Prospective resources in the first seven auctions amount to 14 billion boe Round Auction # Contracts Km 2 Prospective resources (MMboe) % Resources Identified extraction fields Original volume inplace (MMboe) % Original volume in place Remaining 2P Reserve (MMboe) % Reserves , % ,191 50% % ,882 30% 55 12% ,836 10,890 77% Subtotal R ,162 11,577 82% 35 5,073 80% % ,908 1,587 11% % 18 4% , % % 24 5% , % % 4 1% Subtotal R ,569 2,481 18% 72 1,290 20% 46 10% TOTAL 95 45,731 14, % 107 6, % % 25

26 Natural gas pipeline capacity to double by 2019 Pto. Libertad Sásabe San Isidro Samalayuca Ojinaga LNG Regasification Centers Operational Gas Pipelines to 2012 Operational Gas Pipelines to 2013 Guaymas El Encino Colombia Operational Gas Pipelines to 2014 Operational Gas Pipelines to 2015 El Oro Topolobampo La Laguna Escobedo Los Ramones Camargo Matamoros Operational Gas Pipelines to 2016 Gas pipelines under development Gas pipelines under authorization Durango Gas pipelines awarded Additonal 10,000 Km US $16 billion Mazatlán Zacatecas S.L.P. Ags. V. Reyes Guadalajara Apaseo el Alto Tula Pedro Escobedo Altamira Naranjos Tamazunchale Tuxpan Nativitas Gas pipelines projects Cancún Mérida Huexca Lázaro Cárdenas Acapulco Jáltipan Salina Cruz Nvo. Pemex Cd. Pemex Tapachula 26

27 Opening of liquid fuels markets Free imports since April 2016 Gradual opening in 2017 Competition in wholesale and retail markets Open season already in process to access existing infrastructure

28 Opportunities to expand and improve logistics infrastructure for liquid fuels markets Oil Refineries Storage and Distribution Centers (TAR) to 2012 Storage and Distribution Centers (TAR) to 2016 Pipelines to 2012 Pipelines to 2016 Railway Infrastructure for Petroleum Products Maritime Terminals Terrestrial Imports Maritime Imports Pajaritos-Salina Cruz TAR Pto. Chiapas

29 More information at: