Investor Presentation. April 2012

Transcription

1 Investor Presentation April 2012

2 Forward-Looking Statement and Cautionary Note (1/3) Variations If no further specification is included, changes are made against the same period of the last year. Rounding Numbers may not total due to rounding. Financial Information Excluding (i) budgetary,(ii) volumetric, (iii) revenue from sales and services including IEPS, (iv) domestic sales including IEPS, (v) petroleum products sales including IEPS, and (vi) operating income including IEPS information, the financial information included in this report is based on unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards, FRS) -formerly Mexican GAAP- issued by the Consejo Mexicano de Normas de Información Financiera (CINIF). Based on FRS B-10 "Inflation effects", 2010 and 2011 amounts are expressed in nominal terms. Based on FRS B-3 "Income Statement and FRS C-10 Derivative Financial Instruments and Hedging Transactions, the financial income and cost of the Comprehensive Financial Result include the effect of financial derivatives. The EBITDA is a non-u.s. GAAP and non-frs measure issued by CINIF. Budgetary information is based on standards from Mexican governmental accounting; therefore, it does not include information from the subsidiary companies of Petróleos Mexicanos. Foreign Exchange Conversions Unless otherwise specified, convenience translations into U.S. dollars of amounts in Mexican pesos have been made at the established exchange rate, at December 31, 2011, of Ps = U.S.$1.00. Such translations should not be construed as a representation that the peso amounts have been or could be converted into U.S. dollars at the foregoing or any other rate. 2

3 Forward-Looking Statement and Cautionary Note (2/3) Fiscal Regime Since January 1, 2006, PEMEX has been subject to a new fiscal regime. Pemex-Exploration and Production s (PEP) tax regime is governed by the Federal Duties Law, while the tax regimes of the other Subsidiary Entities continue to be governed by Mexico s Income Tax Law. The most important duty paid by PEP is the Ordinary Hydrocarbons Duty (OHD), the tax base of which is a quasi operating profit. In addition to the payment of the OHD, PEP is required to pay other duties. Under PEMEX s current fiscal regime, the Special Tax on Production and Services (IEPS) applicable to gasoline and diesel is regulated under the Federal Income Law. PEMEX is an intermediary between the Secretary of Finance and Public Credit (SHCP) and the final consumer; PEMEX retains the amount of IEPS and transfers it to the Federal Government. The IEPS rate is calculated as the difference between the retail or final price, and the producer price. The final prices of gasoline and diesel are established by the SHCP. PEMEX s producer price is calculated in reference to that of an efficient refinery operating in the Gulf of Mexico. Since 2006, if the final price is lower than the producer price, the SHCP credits to PEMEX the difference among them. The IEPS credit amount is accrued, whereas the information generally presented by the SHCP is cashflow. Hydrocarbon Reserves Pursuant to Article 10 of the Regulatory Law to Article 27 of the Political Constitution of the United Mexican States Concerning Petroleum Affairs, Pemex-Exploration and Production s hydrocarbon reserves estimates as of January 1, 2012, were reviewed by the National Hydrocarbons Commission (which we refer to as the NHC). The NHC approved our hydrocarbon reserves estimates on February 24, The registration and publication by the Ministry of Energy, as provided in Article 33, paragraph XX of the Organic Law of the Federal Public Administration, is still pending. As of January 1, 2010, the SEC changed its rules to permit oil and gas companies, in their filings with the SEC, to disclose not only proved reserves, but also probable reserves and possible reserves. In addition, we do not necessarily mean that the probable or possible reserves described herein meet the recoverability thresholds established by the SEC in its new definitions. Investors are urged to consider closely the disclosure in our Form 20-F and our annual report to the Mexican Banking and Securities Commission (CNBV), available at 3

4 Forward-Looking Statement and Cautionary Note (3/3) Bids Only results from bids occurred between January 1 and March 31, 2011 are included. For further information, please access Forward-looking Statements This report contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the CNBV and the SEC, in our annual reports, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. We may include forward-looking statements that address, among other things, our: drilling and other exploration activities; import and export activities; projected and targeted capital expenditures; costs; commitments; revenues; liquidity, etc. Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are not limited to: changes in international crude oil and natural gas prices; effects on us from competition; limitations on our access to sources of financing on competitive terms; significant economic or political developments in Mexico; developments affecting the energy sector; and changes in our regulatory environment. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. These risks and uncertainties are more fully detailed in PEMEX s most recent Form 20-F filing with the SEC ( and the PEMEX prospectus filed with the CNBV and available through the Mexican Stock Exchange ( These factors could cause actual results to differ materially from those contained in any forward-looking statement. PEMEX PEMEX is Mexico s national oil and gas company. Created in 1938, it is the exclusive producer of Mexico s oil and gas resources. The operating subsidiary entities are Pemex-Exploration and Production, Pemex-Refining, Pemex-Gas and Basic Petrochemicals and Pemex-Petrochemicals. Its principal subsidiary company is PMI. 4

5 Content Achievements Challenges Results 5

6 Achievements 2008 Reform Business Plan Operational Program Investment Program Stabilization of Production Diversified projects Increase Reserve Replacement Rate New Business Models in place Improved Exploitation Strategy at ATG/Chicontepec New E&P Integrated Contracts Improvement of purchasing Processes Sustainability and Environmental Protection 6

7 Production Aligned to Goals Mbd 2,500 2,550 2,560 2,607 2,578 2,567 2,552 2,572 2,558 2,525 2,547 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q PEF 2010 PEF 2011 E E Significant operational efforts have been made to stabilize production Note: E stands for estimated 7

8 Cantarell declines according to plan, partially offset by other fields Mbd 2,500 2,000 Forecast Cantarell Actual CAGR 1 :7.9% 1,500 1,000 Production w/o Cantarell (1) Compounded Annual Growth Rate Note: Mexico s CAGR is -4.4% Source: Purvin & Gertz

9 Exploitation Investment Million Pesos 240, , , ,000 80,000 40, Other Projects Delta del Grijalva AJB CLM ATG Burgos KMZ Cantarell Cantarell vs. Other Projects From 2006 to 2011, Cantarell represented about 21% of total exploitation investment. In 2011, Cantarell represented about 19.6% of total exploitation investment. 9

10 Pemex PBR APA RDS ENI RY PNS CVX BP STO XOM TOT COP HES ANA MUR BG NXN BHP MRO NBL MAE No. Exploratoin Wells Drilled Exploration and Drilling Efforts Period of analysis Wells drilled onshore, offshore and deepwaters PEP: Petroleos Mexicanos PBR: Petroleo Brasileiro SA APA: Apache Corporation RDS: Royal Dutch Shell ENI: Ente Nazionale Idrocarburi RY: Repsol YPF PNS: PNS Petroleum Inc CVX: Chevron Corporation BP: British Petroleum Onshore Shelf Deepwater STO: Statoil XOM: Exxon Corporation TOT: Total COP: ConocoPhilips HES: Hess Corporation ANA: Anadako Petroleum Corporation MUR: Murphy Oil Corporation BG: BG Group PLC. NXN: Nexen Inc. BHP: BHP Billiton MRO: Marathon Oil Corporation NBL: Noble Energy Inc. MAE: MAE Petroleum LLC Petrobras is by far the most active DW driller The top four companies by scale (XOM, Shell, BP and CVX) have very similar levels of DW drilling activity and average spend per well, with Shell marginally edging it in terms of experience and cost Of the top six DW explorers for spend per well five of them (Maersk, Marathon, BG, Repsol and Statoil) lack operated experience, the other, Anadarko, has historically had a high proportion of frontier DW areas where up front and drilling costs would be expected to be high Nexen, Noble and Apache all have limited DW drilling experience, but this has not inhibited their ability to deliver strong performance where they have been active e.g. Noble in Israel and Apache in Egypt Source: Wood Mackenzie Exploration Service August

11 140% 120% 100% 80% 60% 40% 20% 0% Reserves Replacement Rate 56.9% 59.2% 59.7% 22.7% 26.4% Sustained Increase of the Reserve Replacement Rate 41.0% 65.7% 50.3% 102.1% 128.7% 71.8% 77.1% 103.9% 107.6% 85.8% 101.1% P 3P The 100% 1P Reserve Replacement Rate Goal was reached a year in advance. Exploration CAPEX U.S.$Billion E E stands for estimated. 11

12 Reserves Evolution Reserves as of January 1 of Each Year Billion barrels of crude oil equivalent (MMMboe) Possible Probable Proved P Reserves: P Reserves: P Reserves: Note: Numbers may not total due to rounding. Since 2002 Pemex Exploration and Production has utilized the SEC proved reserves definition 12

13 Main Discoveries P Reserves (Million barrels of oil equivalent) Tsimin Xux ,137.9 Heavy oil Light oil Gas Kayab Ayatsil Pit Bricol Lakach Kinbe Main discoveries 2011 Kinbe Located in the Gulf of México, 22 meters water depth Initial production of 4,800 bd of 37 API crude oil Piklis Lalail Kuil Terra Tekel Homol Pareto Utsil Pareto Main discovery in the South Region Initial production of 4,000 barrels per day of 43 API crude oil Emergente (Shale Gas) First discovery in Shale gas Estimated 3P reserves of 112 Bcf of gas 3 wells are in the process of completion: Montañes-1, Nómada-1 and Percutor-1 13

14 Field Laboratories Sector 1 Sector 2 Agua Fría Sector 4 Sector 6 Improved Exploitation Strategy at ATG/Chicontepec Coyotes Sector 3 Sector 5 Sector 7 Sector 8 Coralillo Remolino Presidente Alemán 5 Field Labs Other Activities Focused on value creation Improved well productivity Enhanced recovery Cost reduction Managed declination ,803 47% 65,858 The latest exploitation strategy implemented in ATG, has been the most successful 10 0 Crudo pesado Crudo ligero 14

15 Field New Business Models Upstream Successful 1st Round: Southern Region Company Max. Rate US$/b Offered Rate US$/b Min. Investment US$MM Magallanes Petrofac Facilities Mngt. Ltd Santuario Petrofac Facilities Mngt. Ltd Carrizo Dowell Schlumberger Mature Fields Southern Region 2, , PEMEX is partnering with the winning companies to complement its capabilities. Original Volume (MMboe) Reserves 3P (MMboe) Current Production (Mbd) Carrizo Santuario Magallanes Approximate incremental production of 55 Mbd 15

16 New Business Models - Downstream Project Deer Park PEMEX Mexichem Partner PEMEX s Participation 1. Joint Venture 2. Crude supply 1. Joint Venture 2. Fixed assets 3. Supply of raw materials Objective Refine Mexican heavy crude oil and increase gasoline supply to Mexico Increase production of vinyl chloride Start Up (to be confirmed) 16

17 Improved Purchase and Acquisitions Processes (1/2) Comprehensive analysis of supply and demand Short, medium and long term execution strategy New legal framework Greater negotiation power Recognize and seize market opportunities Better contracting terms and conditions Significant savings 17

18 Improved Purchase and Acquisitions Processes (2/2) Cash Purchase VS Financial Lease Savings 1 25% Fleet Platforms Traditional Rent New Contract Design Financial Lease Savings 1 18% - 20% Savings 1 35% Drilling pipe Average Consumption 185 to 200 MTA 2 New Contract Design Savings 1 MMPs. 465 (1) Expected (2) Thousand Tons Per Annum 18

19 Sustainability and Environmental Protection Accumulated CO 2 emission mitigation goal 1 from = 9.94 MMton PEMEX Total CO 2 emission mitigation from 2009 to 2011* = 14.4 MMton CO 2 Emissions (MMton) Nuevo Pemex 900 MTCO 2 e/year = US$MM5.6-26% CPQ. Cangrejera Cogeneration = CO 2 Reduction = Additional Income CPQ. Morelos * PPQ PGPB PEP PREF 410 MTCO 2 e/year = US$MM MTCO 2 e/year = US$MM2.6 (1) Source: PECC. (*) Estimated. 19

20 Content Achievements Challenges Results 20

21 Challenges Crude Oil Production Levels Operational and Technological Improvements Stronger Operational Processes Production Growth New Rounds of Integrated Contracts Shale Resources Deep Waters New Exploration and Maintenance Functions Upgrades and Expansion of Installed Capacity Operational Improvements 21

22 Increase Production: Crude Oil Mbd 3,000 2,500 2,000 1,500 1, Cantarell Cantarell Ku-Maloob-Zaap Ku-Maloob- Zaap ATG ATG Explotación (Excluding, Aceite Terciario del Golfo y Exploitation Ku-Maloob-Zaap) (Excluding, Aceite Terciario del Golfo and Ku-Maloob-Zaap) Exploration 4 Integrated contracts 2 Tsimin Xux Ayatsil Tekel 1 ATG integrated contracts Incremental Production for 2014 Range(Mbd) Exploration Ku-Maloob-Zaap Aceite Terciario del Golfo Integrated Contracts

23 Strategy for Shallow Waters and Onshore Regions Cuenca Tampico-Misantla Prospective resources (22,608 MMboe) 11,929 3,838 8,091 Southeast marine 8,154 3,099 5,055 Southeast on-shore Light Crude Oil Heavy Crude Oil Cuencas del Sureste Plays Locations and opportunities 2, ,931 Tampico-Misantla basin CSM basin CST basin CTM The strategy will be focused on the Southeastern Basins, including both the marine and onshore portions: Execute activities to identify the continuity of established plays such as the Cretaceous play Increase the activity to identify Tertiary plays for oil resources Potential evaluation of pre and sub- salt plays Additionally, exploration will be reactivated at the Tampico-Misantla Basin with the aim of finding oil opportunities in the Mesozoicage plays 23

24 2 nd Round: Mature Fields Northern Region 22 fields in 6 blocks in Mexico s Northern Region. The Contracts were approved by the Board of Directors on November Prospective resources of approximately 1,672 MMboe along 6,691 km 2. Bid process expected by end of first half 2012 (1-H 2012). The minimum investment per field between US$25 to US$50 million. Mature Fields Northern Region Altamira Pánuco Tierra Blanca Arenque Atún San Andrés 16, ,506 1,771 1,059 11, Original Volume (1) (MMboe) Reserves 3P (MMboe) Atún Arenque San Andrés Tierra Blanca Pánuco Altamira - Current Production (Mbd) (1) Estimated. 24

25 Potential Shale Resources Chihuahua Paleozoic Shale Gas Sabinas Cretaceous Shale Gas Burro Picachos Burgos Tampico Misantla Veracruz Eagle Ford Shale Gas Texas Jurassic Shale Gas Shale Gas Provinces Eagle Ford/Agua Nueva Haynesville Bone Spring /Woodford PEMEX has identified 5 geological provinces with shale gas potential: Chihuahua Sabinas-Burro-Picachos Burgos Tampico-Misantla Veracruz PEMEX estimates prospective resources of shale gas ranging from 150 to 459 TCF, which represent from 2.5 to 7 times the conventional 3P gas reserves of Mexico. According to the EIA, Mexico s shale gas resources could reach 681 TCF, which is ranked as the fourth largest reserve worldwide. PEMEX is evaluating Mexico s shale gas potential, in 2011 PEMEX concluded the well Emergente-1, and it is in the process of completing 3 additional wells. An intensive development scenario shows that gas production could triplicate to 20 bcf per day. 25

26 Activities in Deepwaters! Salina del Bravo Oreos Nancan Cinturón Subsalino Cinturón Plegado Perdido Cordilleras Mexicanas Cinturón Plegado Perdido Abisal Golfo de México 3D seismic Escarpe de Campeche Total investment : 49 billion pesos ~ 3.6 billion USD 3D seismic acquisition: 107,762 km 2 Wells Drilled: 19, 9 of which were producers Jaca-patini!!! Talipau-1 Salina del Istmo 3P reserves discovered: 736 MMboe Lipax Kunah-1 Holok!!!!!!!!!! Temoa! Han Nox Hux!!!!! Hux-1 Commercial success rate: 47% Cinturón Plegado Catemaco PEMEX has established several collaboration agreements with Shell, BP, Petrobras, Intec, Heerema, Pegasus, etc. Currently PEMEX is operating three platforms in deep waters: Centenario, Bicentenario and West Pegasus. PEMEX has identified heavy and extra-heavy oil reservoirs into the southern portion of the Salina del Istmo province. 26

27 Benchmarking: Deepwater Drilling Wells Water depth > 500 m TOTAL Petrobras Shell Chevron BP Total PEMEX PEMEX has been ranked in the sixth position of deepwater activities (water depth greater than 500 meters) in the last six years, based on operating rigs and wells drilled The benchmark study takes into account wells drilled in West Africa, UK, Norway, Brazil and GOM (USA and Mexico). It is important to note that BP and Shell do not report drilling activity in deepwater during 2011 Source: Wood Mackenzie Exploration Service 27

28 Maintenance Exploration New Exploration and Maintenance Functions Function Goals Advantages Implementation, coordination, design and supervision of exploration strategies in 5 zones: Southeastern Marine Basin Southeastern Onshore Basin Tampico-Misantla-Gulf Northern Deep Waters Southern Deep Waters Improve the execution strategy in exploration. Comply with institutional goals in potential evaluation projects and reserves incorporation. Operations consolidation which will allow us to take advantage of economies of scale and targeting efforts towards increasing reserves incorporation and the value of investments. Function Goals Advantages Consolidation of maintenance and logistics of the marine and onshore facilities. Guarantee prompt attention to maintenance and logistics requirements. Maximize facilities reliability and collaborate on achieving operational programs which take into account the environment and the community. A global view of the Assets requirements, which will help us to improve our response capacity and resources planning, in order to provide programmed and preventive maintenance, and repairs. 28

29 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 29

30 Refining: Operational Performance Improvement Program (MDO) 230 opportunities identified in 4 out of 6 refineries No. Of opportunities worth 1.2 billion USD when fully captured Million USD per annum Conceptual stage 85 Conceptual stage 0 Development 52 Development 569 Implementation 62 Implementation 382 Implementation/ with capital 10 Implementation/ with capital 110 Monitoring stage 21 Monitoring stage 109 Total 230 Total 1,170 Economic value amounts to a net gain of ~3.39 USD/barrel, at october 2010 prices. Only 9.5% of initiatives involve capital expenditure Fuente: MDO 30

31 Content Achievements Challenges Results 31

32 2011 Financial Highlights Total revenue from sales and services Total revenue from sales and services including IEPS Billion Pesos Billion Dollars Change , , % , , % Gross Income % Operating Income % Income before Taxes and Duties % Taxes and Duties % Net Income (loss) (46.5) (91.5) (3.8) (6.5) EBITDA , % (1) Earnings Before Interest, Taxes, Depreciation and Amortization. Excludes IEPS 32

33 Investment Budget U.S. Billion Dollars % 2.0% Pemex- Petrochemicals Pemex-Gas and Basic Petrochemicals % Pemex- Refining 85% Pemex- Exploration and Production E 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. For reference purposes, U.S. dollar- Mexican peso exchange rate conversions have been made at the following exchange rates, Ps /U.S.$1 for 2012, and Ps.12.9/U.S.$1 for 2013 and beyond years. Includes complimentary non-programmed CAPEX. 33

34 Expected Sources and Uses of Funds 2012 U.S. Billion Dollars Sources Uses Price: USD/b Exchange rate: Ps /USD Crude oil production: 2,597 Mbd Crude oil exports: 1,176 Mbd Natural gas production: 6.16 MMcfd Initial Cash 6.7 Resources from Operations Financing Total Total Investment (CAPEX) Debt Payments Final Cash Net Indebtedness: 2.0 USD 34

35 Approved Financing Program 2012 Financing Program 2012 E 100% = 8.1 billion dollars /106 billion pesos 2.4% Source Amount MXN Billion Amount USD Billion International Markets Dollars Other Markets % 29.3% 48.8% Domestic Market CEBURES Export Credit Agencies (ECAs) Others International Markets ECAs Domestic Markets Others Total Issuance** Total Debt Payment Net Indebtedness for the year** (*) Does not include revolving credit facilities. (**) Maximum approved amount. Note: Numbers may not total due to rounding. 35

36 Investor Relations (+52 55)

37 PEMEX Snapshot PEMEX ranking globally 1 : 4 th crude oil producer 11 th integrated oil company 11 th in crude oil reserves 15 th in natural gas production 13 th in refining capacity Credit rating: Fitch: BBB Stable Moody s: Baa1 Stable S&P: BBB Stable Reserves MMMboe Hydrocarbon production MMMboed Total sales Billion dollars Proved Probable Possible Crude Condesates Natural gas equivalent Domestic sales Export sales (1) PIW 2011 Rankings, December 6, Petroleum Intelligence Weekly. 37

38 Background: Oil Production Evolution Thousand barrels per day 3,500 3,000 2,500 2,000 Cantarell South- 1,500 eastern Other offshore fields Basins 1, Mesozoic Ku-Maloob-Zaap Chiapas-Tabasco 0 Tertiary-age fields and other ones (mainly Tampico-Misantla basin) Years In the 60's the oil production came mainly from Poza Rica and San Andres fields in the Northern Region, as well as from the Cinco Presidentes and Sánchez Magallanes fields in the Southern Region In the mid-70 s the Samaria, Sitio Grande, Cactus, Agave and Cunduacán fields from the Chiapas- Tabasco Mesozoic were incorporated, all of them part of the Southeastern Basins In the late 70's and early 80's, the offshore fields Akal, Nohoch, Ku, and Abkatún, located in the Southeastern Basins started development. In 2004, Cantarell started its predicted natural production decline Since 2009 crude oil production is stable 38

39 Secondary Recovery and Enhanced Oil Recovery: key factors to reverse production decline and increase recovery factors per field 3P Original Oil In Place related to SR and EOR (MMmboe) 9 4 Secondary Recovery 16 6 Enhanced Oil Recovery 17 Low Permeability Reservoirs 4.7 Higher scenario Heavy and Extra Heavy Crude Test fields (Analogous) Akal KL, Chac Maloob Cunduacán Chuc Cárdenas Pilots A B C D E Foamy surfactant injection at the gas invaded zone in the Akal KL block Surfactant solution injection at the water invaded zone in the Chac field CO 2 injection in the Maloob field Foamy surfactant injection in the Antonio J. Bermúdez Complex Hydrocarbon gas injection in the Chuc field The resources associated with enhanced oil recovery could represent a potential increase in recovery factor (RF) from 3% to 8% The resources associated with secondary recovery represent an increase RF potential 5 to 12% Therefore, in 2010 PEMEX started the implementation of a Strategy in Enhanced Oil Recovery at PEP and defined the Secondary Recovery Strategy which will be initiated in 2012 Eleven pilot projects for EOR have been designed to test different types of technology Poza Rica Samaria Terciario Coyotes Soledad Agua fría F G H I J K Air injection in the Cárdenas field Surfactant injection in the Poza Rica field Steam injection at the Tertiary-age sandstones of the Samaria field CO 2 injection in the Coyotes field Air injection in the Soledad field CO 2 injection in the Ogarrio field 39

40 The production increase coming from other fields beats other crude oil producer countries performance Excluding Cantarell, crude oil production growth in Mexico outperforms levels reached by other important crude oil producer countries. CAGR Incremental barrels Mbd -0.2% -0.2% -6.3% -2.2% -3.2% -5.5% -5.3% 7.9% 7.2% 4.6% 6.8% 5.9% 2.5% 1.4% 1.9% Mexico w/o Cantarell Angola Kazakhstan Irak Brazil Canada Russia China Saudi Arabia Nigeria Lybia -550 Iran -507 Venezuela -581 United Kingdom -470 Norway Mexico w/o Cantarell Angola Kazakhstan Irak Brazil Canada Russia China Saudi Arabia Nigeria Lybia Iran Venezuela United Kingdom Norway Note: Mexico s CAGR for is -4.4% Source: Purvin & Gertz

41 Oil Production Scenario Thousands of barrels per day 3,500 2,700 3,000 3,000 2,500 2,000 1,500 1, Cantarell Exploitation Tsimin-Xux Ku Maloob Zaap (without Cantarell, Chicontepec, Ku Maloob Zaap, Ayatsil -Tekel and Tsimin-Xux) Deepwater Future development offshore Ayatsil-Tekel Future development onshore Chicontepec Exploitation 1,230 1,182 1,116 1,068 1, Cantarell Chicontepec Ku-Maloob-Zaap Tsimin-Xux Ayatsil-Tekel FD on shore FD off shore Deepw aters Total 2,602 2,605 2,654 2,721 2,797 2,921 2,998 2,990 2,992 3,031 3,022 3,025 3,052 3,057 3,107 41

42 New developments will yield additional production Baksha-Pit Name Fluid Type 3P reserves (MMboe) Tekel Ayatsil Xux-Tsimin Light Oil (43 API) 1,947 Ayatsil-Tekel Heavy Oil (12 API) 757 Tsimin Pit- Baksha Heavy Oil (12 API) 504 These discoveries are among the biggest found in the Gulf of Mexico Size of Discoveries in the Gulf of Mexico* Number of Fields Discovery Size Ayatsil-Tekel-Pit-Baksha Xux Tsimin 1P 2P < < 0.25 < 0.5 < 1 < 2 < 4 < 8 < 16 < 32 < 64 < 128 < 256 < 512 < Proved Reserves, MMboe 1,024 < 2,048 * Source: Mineral Management Service, Department of the Interior, U.S. Federal Government. 42

43 Ayatsil-Tekel Project Oil production (mbd) Tsimin -Xux Ayatsil-Tekel Main challenges Ayatsil Tekel: Development of extra-heavy oil reservoirs Tsimin Xux: Development of gas and condensate reservoirs maximizing the recovery of liquids Lakach: First deepwater development Gas production (mmcfd) 1,200 1, Lakach Tsimin -Xux Main activities: Project Wells Platforms CAPEX Number Number MM USD Ayatsil-Tekel ,016 Tsimin-Xux ,740 Lakach 7 2,045 43

44 Reserves and Prospective Resources Total Reserves by Area as of January 1, 2012 MMMboe (billion barrels of oil equivalent) Producing Basin Oil and Gas Gas Basin 3P 1 2P 1 1P 1 Burgos and Sabinas Deep-waters Southeastern Tampico Misantla (ATG) Veracruz Total Equivalent to (years of production) Prospective Resources 3 Basin MMMboe Burgos 2.9 Deep waters in the Gulf of Mexico 26.6 Sabinas 0.4 Southeastern 20.1 Tampico-Misantla (ATG) 2.5 Veracruz 1.6 Yucatán Platform 0.5 Total Sabinas Tampico- Misantla Veracruz Burgos Deep sea exploration Gulf of Mexico Southeastern (1) 3P means the sum of proved, probable and possible reserves; 2P means the sum of proved and probable reserves; and 1P means proved reserves. (2) Numbers may not total due to rounding. (3) As of January 1 st,

45 1P Reserve Replacement 1P reserve incorporation by type % 11% % 19% % 37% % 35% Revisions New Discoveries 1P reserve incorporation by Region (Mmboe) Northeastern Marine Southwestern Marine Northern Southern (Mmboe) P Reserve Replacement Rate 77.1% 85.8% 101.1% Northeastern Marine Cantarell Ku-Maloob-Zaap Southwestern Marine Abkatún-Pol-Chuc Holok-Temoa Litoral de Tabasco Northern Aceite Terciario del Golfo Burgos Poza Rica-Altamira Veracruz Southern Bellota-Jujo Cinco Presidentes Macuspana Muspac Samaria-Luna TOTAL 1, , ,

46 Deepwater Drilling Chuktah m Nab m Etbakel m Puskón m Noxal m Lakach m Lalail m Tamil m Chelem1 810 m Tamha-1 1,121 m Kabilil m Leek m Holok-1 1,028 m Catamat-1 1,230 m Lakach -2DL 1,196 m Labay-1 1,700 m Nen-1 1,493 m Piklis-1 1,945 m From 2000, 18 wells were drilled, discovering 8 non-associated natural gas field and 2 extra heavy oil fields. 46

47 Water depth (meters) Deepwater Drilling Chuktah Nab Talipau-1 Puskón-1 Lakach Maximino-1 Noxal Lakach Lalail Gas Field Oil Field Tamil Chelem Tamha-1 1,121 Unsuccessful Drilling 2009 Leek Catamat-1 1,230 Deepwater budget (drilling, seismic acquisition, studies) ,976 MMpesos 14,063 MMpesos 3 Etbakel Kabilil Holok-1 1, Lakach-2DL 1,196 Labay-1 1,700 Puskón Talipau Hux-1 1,130 Nen-1 1,495 Piklis-1 1, Yoka--1 2,090 Kunah-1 2,154 Trión-1 2, Program Supremus-1 2, No. of locations >1,000 m 48 Caxa--1 1,800 Maximino-1 2,933 47

48 Production and F&D Costs Production Costs a 2010 / boe Finding and Development Costs b,c 2010 / boe Production Costs / boe Finding and Development Costs / boe PEMEX Total Statoil BP Conoco Exxon Eni Shell Petrobras Chevron BP Exxon PEMEX Petrobras Shell Total Conoco Eni Chevron Statoil a) Source: 20-F Form (1) Source: Annual Reports and SEC Reports b) PEMEX Estimates- 3-year average. (2) Estimates based on John S. Herold, Operational Summary, c) Includes indirect administration expenses. Annual Report and SEC Reports

49 Productivity September 2009 = 100% 115% 110% 105% 100% Evolution of Productivity Index 95% 90% 85% 80% 75% 70% 65% Sep-2009 Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Permanent Payroll PEP / wells in operation (100% = 5.7) Permanent Payroll PGPB / MMcfd processed wet gas (100% = 2.6) Permanent Payroll PR / Mbd of Petroleum Products Sold (100% = 22.9) Permanent Payroll PPQ / MT of Petrochemicals Sold (100% = 46.8) 49

50 Execution Strategy Mature Fields Southern and Northern Regions Mature Fields Northern Region and Chicontepec Increase Capacity Execution Deep Waters Beyond st round: Awarded in August nd round: Contracts approved by the Board of Directors in November 2011 and the preliminary bases were published in December Focus on technical, operational and managerial challenges. Potential to increase the recovery factor. Awarding of the 2 nd round of mature fields of the Northern Region. Chicontepec: Resources that require a greater execution capacity and the development of specific technological solutions. 56% of probable reserves and 58% of possible reserves are located in Chicontepec. An important portions of the long term production platform is located in Deep Waters. First production is expected to be obtained in approximately seven years. Strategic execution program aligned with the business plan 50

51 Sustainability and Environmental Protection (1/2) Conservation Reforestation Carbon Capture Environmental Education Research and Technological Applications Main Projects Pantanos de Centla Selva Lacandona Humedales de Alvarado Parque Ecológico Jaguaroundi 51

52 Project Environmental Projects (1/2) Description Achievements Research, educational and technological implementation program to preserve the Lacandona Jungle Protection of 3 thousand 200 hectares. Resolution of land conflicts with an environmental perspective. Recovery of animal populations considered as endangered. Environmental education in localities. Natural Reserve of 960 hectares focused on conservation, reforestation, carbon capture and environmental education. Preservation of biodiversity. Environmental education activities and restoration of affected areas. Special Honorable Mention in the National Award for Ecological Merit in Parque Ecológico Jaguaroundi 52

53 Project Environmental Projects (2/2) Description Achievements Conservation, environmental education and management project of the Centla Marshes Biosphere Reserve, Tabasco. Development and consolidation of the Casa del Agua as an agent of transformation in the culture of conservation in the region. Publication and dissemination of educational materials. Restoration of critical ecosystems. Sustainable development in communities. Environmental Education Project in the Alvarado and Tuxpan wetlands, and the Otontepec Sierra. Reforestation of mangroves and lowlands in the Alvarado Lagoon System. Environmental education and training. 200 landlords trained in reforestation, fire control and soil protection techniques. Reforestation of 643 hectares in properties of which 398 are mangrove vegetation and 245 are lowland forest, with a scheme of community participation. 53

54 Exxon Royal Dutch Shell Statoil BP Chevron Petrobras Pemex Exxon Royal Dutch Shell Statoil BP Chevron Petrobras Pemex (U.S.$) Exxon Royal Dutch Shell Statoil BP Chevron Petrobras PEMEX Total sales $433, $470, $115, $375, $236, $146, $111, Gross income $71, $73, $58, $61, $44, $46, $55, Operating income $54, $42, $37, $27, $38, $26, $48, Income before taxes and duties $73, $55, $38, $38, $47, $26, $56, Net income $41, $30, $14, $25, $26, $19, $6, EBITDA $69, $55, $46, $39, $51, $36, $76, Gross Margin EBITDA Margin Operating Margin Pre-tax Margin Source: Bloomberg. 54

55 4Q11 Financial Highlights Billion Pesos Billion Dollars 4Q10 4Q11 Change 4Q10 4Q11 Total revenue from sales and services % Gross Income % Operating Income % Income before Taxes and Duties % Taxes and Duties % Net Income (loss) (25.1) (23.8) (2.0) (1.7) EBITDA % (1) Earnings Before Interest, Taxes, Depreciation and Amortization. Excludes IEPS 55

56 1Q12 Financial Results Billion Pesos Billion Dollars 1Q11 1Q12 Variation 1Q11 1Q12 Total revenue from sales and services % Gross Income % Operating Income % Income before Taxes and Duties % Taxes and Duties % Net Income EBITDA % (1) Earnings Before Interest, Taxes, Depreciation and Amortization. Excludes IEPS. 56

57 Financial Highlights vs (NIF) Million MX$ Var. Abs vs Total sales 1, , % Domestic % Exports % Income from services % Cost of sales % Gross profit % General expenses % Distribution expenses % Administrative expenses % Operating profit % Other income (expenditure), net % Financial result (cost) (12.0) (91.6) % % Financial results of non consolidated subsidiaries 1.5 (0.8) % Profit before tax and duties % Tax and duties paid % Net loss (46.5) (91.5) % 57

58 Sources and Uses of Funds 2011 Sources Uses Average Exchange Rate: $/USD Production: 2,553.4 Mbd Average Price: USD/BL Net Indebtedness: 1.7 billion USD Internal: 0.5 billion USD External: 1.2 billion USD Initial cash Resources from operations Financing Total Total investment (CAPEX) Debt Payments Final cash PEMEX's Board authorized a limited net indebtedness of U.S.$3.5 billion and a maximum debt to be raised of U.S.$10 billion. Estimated amortizations for the year are U.S.$6.5 billion. Nevertheless, due to operating cash flow generation and existing cash balances the amount of debt raised in 2011 should be around U.S.$8.1 billion. Therefore, the resulting net indebtedness should be U.S.$

59 Million pesos Subsidy of LPG External and Structural Effects Opportunity cost of the sale of LPG in the domestic market. It is the difference between the international reference price and the maximum price set by Presidential decree, times the volume sold. Total Amount 2011 = 39,950 Diesel imports price parity Non-recognized logistics costs on diesel imports. Prices are kept at parity. = 2,856 Quality of gasolines and diesel Producer s price is not adjusted as the quality of automotive gasolines change. = 4,929 Cost-cap It is the excess tax generated by deducting the cost-cap authorized in the fiscal regime for PEP, instead of the real costs. = 88,886

60 2011 Capital Markets Activity 5.00% 4.50% 4.00% 3.50% A B C 3.00% 2.50% 2.00% D,E F G 1.50% ene 11 feb 11 abr 11 jun 11 jul 11 sep 11 oct 11 dic 11 Issuance MM Coupon Issuance Date Maturity A Ps. 10,000 TIIE bp 15-mar B USD$1, % 25-may C USD$1, % 20-jul D Ps. 7,000 TIIE pb 27-sep E UDIS (Ps. 3,000) 3.55% 27-sep F USD$1, % 12-oct reopening G Ps. 10, % 7-dic

61 Debt Outstanding Consolidated Debt 1 US$ Billion PEMEX S Debt Evolution Outstanding at the end of each year (1) Does not include accrual interest (2) Estimated 61

62 Debt Portfolio Maturity Profile Consolidated Debt * Total Debt as of December 31, 2011 U.S.$55.3 billion 13.2% 12.1% 11.2% 10.5% 8.7% 8.1% 5.4% 6.1% 6.5% 5.8% 7.4% 2.3% 1.3% 0.9% 0.0% 0.0% 0.5% (1) Numbers may not total due to rounding. (*) Does not include accrued interests 62

63 Composition of Debt Total Debt as of December 31, 2011 U.S.$55.3 billion Pesos 15% By Currency of Issuance* Swiss Francs 1% By Interest Rate British Pounds 2% UDIS 3% Int. Bank Loans 13% Yens 4% Euros 10% Domestic Bank Loans 1% By Instrument* Others 4% Dollars 65% Flotante 40% By Currency Exposure Peso 18% Fija 60% Euros 2% Dólar Peso Euros ECAs 17% Int. Bonds 49% Dólar 80% Cebures 16% (*) Does not include accrued interests. 63