PEMEX Investor Presentation · 611 124 861 743 612. 2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados. Operational

2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.

Dirección Corporativa de Finanzas

RECENT DEVELOPMENTS

September 2019


Reversing the Declining Crude Oil Production Trend

2

In the past three years PEMEX did not invest in newfields development in order to reverse the decline incrude oil production

Increase investments in wells maintenance and

reparation

Improve supply management and

efficiency related to productive wells

Invest in new developments and

enhance exploration activities

Stabilize current

production

Increase production


Development of 20 New Fields will Boost Production in 2019

3

3 3

8

4 43

2 24

34 4

5

21

0 0 0

20

0

5

10

15

20

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Onshore Offshore

Off

sho

reO

nsh

ore

KutzSihil

Perdiz AcagualCafeto

Saramako

ChuhukEktal

HomolLobinaCarpa

GuarichoShishito

Malva

CitamMay

Sinan

Costero

IxtalManik

Bolontiku

Tiumut

KabYaxche

Nelash RabasaTeotleco

TajónCrtaer

Xanab

CupacheMadrefil

Terra

ChéAluxYum

Tumut

BrillanteParetoTokal

KuilTsimin

GasiferoBedel

KambesahOnel

AnhélidoEltreinta

Sini

Xux

Ayocote

Ayatsil XikinEsah

CheekCahuaUchbalManik

JaatsulSuukTeekitKoban

HokMulach

TlacameTetl

PokcheOctli

IxachiChocol

CibixValeriana

In only one year, PEMEX will invest in 20 new developments, the same number previously achieved in one decade


From December 2018, Authorization of New Fields Development has been Shortened from 3 Years to Less than 3 Months on Average

4

DiscoveryStart of development

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Dec2018

Jan-May2019

AyatsilTsimín

IxachiManik

MulachCibix

ValerianaChocol

HokSuuk

TeekitCahua

OctliUchbalPokcheKoban

JaatsulCheek

TetlEsahXikin

TlacameXux

The development of 20 new fields is already in execution


Increase in Exploration Activities

5

2 1 0 0 0

20 20 2432 32

40

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Number of developments per year

1 6 28 3

20 2432 32

40 40

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Commercial Discoveries

Sources: Pemex. Estimated figures.

Increase in exploration activities will lead to new commercial discoveries thatwill be part of the 20 to 40 new fields per year


Production Forecast of the 22 New Fields that Started in 2019

6Sources: Pemex. Estimated figures.

Production of new developments is expected to reach 70 Mbd inDecember 2019.

Oil

Gas

MM

pcd

Mb

d

2019 2020 2021 2022 2023 2024

320

908

267

70

303

255

203

611

124

861

743612


Operational Projections 2018-2030

7

Note: Considers Ek-Balam’s production operated by PEMEX but owned by the Mexican Government. Under the exploration contract signed in 2017, the Federal Government will retain 70.5% of the operating profits and will pay Pemex Exploration and Production the remaining 29.5%

1,792 1,6821,866

2,0692,321

2,5282,697 2,832 2,975 2,989 2,891 2,759 2,802

2128

14

19

41

65118

165177 190

220239 223

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Partners

PEMEX

Crude Oil ProductionMbd

1,8131,710

1,880

2,088

2,362

2,5932,816

2,9973,152 3,179

3,1122,997 3,025


Operational Considerations 2018-2030

8

612 643 7881,021 1,137 1,150 1,166 1,166 1,166 1,166 1,166 1,166 1,166

27 320 320 320 320 320 320 320 320

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Current NRS Dos Bocas

207 201 316 382 444 596 614 618 618 618 618 618 618117 143197 251 291

402 445 438 438 438 438 438 438

185 144164

233 232239 169 169 169 169 169 169 169

119 123133

155197

253 265 272 272 272 272 272 272

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Gasolines Diesel Fuel Oil Others

Crude oil processing at refineries Mbd

Petroleum products productionMbd

1,1631,470 1,485 1,486 1,486 1,486 1,486 1,486 1,486

629 610811

1,0211,163

1,490 1,493 1,497 1,497 1,497 1,497 1,497 1,497


Estimated Increase in Reserves

9

Exploration activities and the development of new fields are expected torevert the declining trend in reserves

Billion barrels of oil equivalent.Source: PEMEX. Estimated figures.As of January 1 of each year.

9,632 8,562 7,695 7,010 7,084 7,585 8,056 8,545 9,034

6,4526,567

6,529 6,606 6,111 6,040 5,980 5,819 5,586

6,139 7,0206,865 6,837 7,868 8,210 8,429 8,423 8,351

0

5,000

10,000

15,000

20,000

25,000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Proved Probable Possible

ProjectionHistory


Daily Crude Oil Production1

101. Crude oil production (PEMEX and commercial partners). Does not include condensates.

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,850

1,900

1,950

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2018 2019

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Avg. 1,909 1,876 1,846 1,868 1,850 1,828 1,823 1,798 1,808 1,747 1,697 1,710 1,623 1,701 1,691 1,675 1,663 1,671 1,671

Thousand barrels per day (Mbd)


Total Crude Oil Production, 2018-20191

11

1. Crude oil production (PEMEX and commercial partners). Does not include condensates.2. As of July 31, 2017

1,9091,876

1,846 1,868 1,850 1,828 1,823 1,798 1,8081,747

1,697 1,710

1,623

1,701 1,691 1,675 1,663 1,671 1,671

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul


2018 2019

Year Average production (Mbd)

2018 1,813

20192 1,671

Record low


Crude Oil Processing, 2018-2019

121. Estimated crude oil processing.

594544

652

768

685 662 646 670604

485519 511 507

601571 570 570

645 657 661

0

100

200

300

400

500

600

700

800

900

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

2018 2019

Year Crude oil processing average (Mbd)

2018 612

2019 589


1

Record low


Results of the Strategy to Combat Fuel Theft

13

56

8174

2318

9 84 5 5 5 5 4 5 4 4 3 4 4 5 3 4 5 5

Ave

rag

e 20

18

No

v

Dec

01-

20

Dec

21-

31

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Au

g

Sep

1-S

ep

2-S

ep

3-S

ep

4-S

ep

5-S

ep

6-S

ep

7-S

ep

8-S

ep

9-S

ep

10-S

ep

11-S

ep

Fuel theft has decreased by 93% as compared to the average for 2018

Volume of fuel theft (Mbd)


Non-Operating Losses - Fuel Theft

14

Note: These figures were calculated based on the price at the PEMEX pump and do not include Value Added Tax (VAT) and the Special Tax on Production and Services (IEPS).

• In 2Q19, non-operating losses recorded a reduction of 91% as compared to 2Q18.

• The positive effect of this was MXN 8.3 billion.

9.1

0.9

2Q18 2Q19

MXN billion


Relief to the Company’s Fiscal Burden

15

Reform proposal to the “Ley de Ingresos SobreHidrocarburos” to modify the 65% rate of the Profit-Sharing Duty

Gradual scheme that allows federal public finances a transition process to adjust the federal revenues and does not impact the budget equilibrium of the Federal Government

Fiscal Year Rate Variations vs previous year

2019 65.00% Current rate

2020 58.00% 7.00%

2021 54.00% 4.00%


Payment of Direct Taxes 2018-2030

16

Constant MXN billion

551470 462

517570

666718 751 772 775 796 769 782

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

The fiscal proposal is responsible, based on a gradual support

scenario only for the next two years

Transition period


Significant Cost Reductions in New Exploration and Production Service Contracts

17

Vertical and horizontal integration of consortiums based on the nature of the

project: activities with different providers were integrated

An estimated 26%

Fees and cost reduction from new

contracts

Infrastructure

Platforms PipelinesElectro

mechanicsworks

+ + Drilling Services Logistics CrewEMS

Drilling

+ + +

Procurement strategy innovation

Transparency and honesty

Costreductions


Investment Financing1 2020-2030

18

1. Considers budgetary investment and private investment complement2. Considers a reduction in the rate of the Profit-Sharing Duty to reach 58%in 2020 and 54% in 2021

Constant MXN billion

221 250

332375 392 384 363

314266

317375

45

8366

38 3714

40 40 14

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Own Revenues Fiscal Burden Reduction Federal Government Support CSIEES2

375409 389 392 384

363

314

266

317

347

411


CAPEX Financing1 2020-2030 IFRS

19

1. Considers budgetary investment and private investment complement2. Considers a reduction in the rate of the Profit-Sharing Duty to reach 58%in 2020 and 54% in 2021

Constant USD billion

This graph shows investment according to IFRS

5.2 5.8

9.911.9 12.4 12.2 11.5

9.98.4

10.011.92.3

4.13.3

1.9 1.80.7

1.9 1.9 0.7

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Own Revenues Fiscal Burden Reduction Federal Government Support CSIEEs2

11.9

13.712.6 12.4 12.2

11.5

9.9

8.4

10.0

11.5

13.7


Investor Relations(+52 55) 9126 2940

[email protected]://www.pemex.com/en/investors

20

Documents

PEMEX Investor Presentation · 611 124 861 743 612. 2019 D.R. Petróleos Mexicanos. Todos los derechos reservados.2019 D.R. Petróleos Mexicanos. Todos los derechos reservados. Operational