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20F1d913051d20f.htmFORM20F
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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSIONWASHINGTON,D.C.20549
FORM20F
ANNUALREPORTPURSUANTTOSECTION13OR15(d)
OFTHESECURITIESEXCHANGEACTOF1934forthefiscalyearendedDecember31,2014
CommissionFileNumber099
PETRLEOSMEXICANOS(Exactnameofregistrantasspecifiedinitscharter)
MexicanPetroleum UnitedMexicanStates
(TranslationofregistrantsnameintoEnglish) (Jurisdictionofincorporationororganization)
AvenidaMarinaNacionalNo.329ColoniaPetrleosMexicanos11311MxicoD.F.,Mxico
(Addressofprincipalexecutiveoffices)RolandoGalindoGlvez
(5255)19449700ri@pemex.com
AvenidaMarinaNacionalNo.329TorreEjecutivaPiso38ColoniaPetrleosMexicanos
11311MxicoD.F.,Mxico(Name,telephone,emailand/orfacsimilenumbe
randaddressofcompanycontactperson)
SecuritiesregisteredortoberegisteredpursuanttoSection12(b)oftheAct.NoneSecuritiesregisteredortoberegisteredpursuanttoSection12(g)oftheAct.None
SecuritiesforwhichthereisareportingobligationpursuanttoSection15(d)oftheAct.TitleofEachClass
9.50%GlobalGuaranteedBondsdue2027914%GlobalGuaranteedBondsdue2018
8.625%Bondsdue20225.75%GuaranteedNotesdue2018914%GuaranteedBondsdue20188.625%GuaranteedBondsdue20239.50%GuaranteedBondsdue20276.625%GuaranteedBondsdue20356.625%GuaranteedBondsdue20388.00%GuaranteedNotesdue2019
6.000%Notesdue20205.50%Notesdue20216.500%Bondsdue20414.875%Notesdue20225.50%Bondsdue20443.500%Notesdue2018
FloatingRateNotesdue20183.500%Notesdue20234.875%Notesdue20243.125%Notesdue20196.375%Bondsdue2045
Indicatebycheckmarkiftheregistrantisawellknownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.
YesNoIfthisreportisanannualortransitionreport,indicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)ofthe
SecuritiesExchangeActof1934.YesNo
Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsfor
thepast90days.YesNo
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IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationST(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthatthe
registrantwasrequiredtosubmitandpostsuchfiles).N/A
Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,oranonacceleratedfiler.SeedefinitionofacceleratedfilerandlargeacceleratedfilerinRule12b2oftheExchangeAct.(Checkone):
LargeacceleratedfilerAcceleratedfilerNonacceleratedfilerIndicatebycheckmarkwhichbasisofaccountingtheregistranthasusedtopreparethefinancialstatementsincludedinthisfiling:
U.S.GAAP IFRSasissuedbytheIASB OtherIfOtherhasbeencheckedinresponsetothepreviousquestion,indicatebycheckmarkwhichfinancialstatementitemtheregistranthaselectedtofollow.
Item17Item18Ifthisisanannualreport,indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b2oftheExchangeAct).
YesNo
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TABLEOFCONTENTSItem1. IdentityofDirectors,SeniorManagementandAdvisers 5
Item2. OfferStatisticsandExpectedTimetable 5
Item3. KeyInformation 5
Item4. InformationontheCompany 14
Item4A. UnresolvedStaffComments 130
Item5. OperatingandFinancialReviewandProspects 130
Item6. Directors,SeniorManagementandEmployees 160
Item7. MajorShareholdersandRelatedPartyTransactions 190
Item8. FinancialInformation 191
Item9. TheOfferandListing 196
Item10. AdditionalInformation 196
Item11. QuantitativeandQualitativeDisclosuresAboutMarketRisk 204
Item12. DescriptionofSecuritiesOtherthanEquitySecurities 212
Item13. Defaults,DividendArrearagesandDelinquencies 213
Item14. MaterialModificationstotheRightsofSecurityHoldersandUseofProceeds 213
Item15. ControlsandProcedures 213
Item16A. AuditCommitteeFinancialExpert 214
Item16B. CodeofEthics 214
Item16C. PrincipalAccountantFeesandServices 214
Item16D. ExemptionsfromtheListingStandardsforAuditCommittees 215
Item16E. PurchasesofEquitySecuritiesbytheIssuerandAffiliatedPurchasers 216
Item16F. ChangeinRegistrantsCertifyingAccountant 216
Item16G. CorporateGovernance 216
Item16H. MineSafetyDisclosure 216
Item17. FinancialStatements 217
Item18. FinancialStatements 217
Item19. Exhibits 217
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PetrleosMexicanosanditsfoursubsidiaryentities,PemexExploracinyProduccin(PemexExplorationandProduction),PemexRefinacin(PemexRefining),PemexGasyPetroqumicaBsica(PemexGasandBasicPetrochemicals)andPemexPetroqumica(PemexPetrochemicals,andtogetherwithPemexExplorationandProduction,PemexRefiningandPemexGasandBasicPetrochemicals,collectivelyreferredtoastheexistingsubsidiaryentities),comprisethestateoilandgascompanyoftheUnitedMexicanStates,whichwerefertoasMexico.PetrleosMexicanosisaproductivestateownedcompanyoftheFederalGovernmentofMexico,whichwerefertoastheMexicanGovernment,andeachofthesubsidiaryentitiesisadecentralizedpublicentityoftheMexicanGovernment.EachofPetrleosMexicanosandtheexistingsubsidiaryentitiesisalegalentityempoweredtoownpropertyandcarryonbusinessinitsownname.Inaddition,anumberofsubsidiarycompaniesthataredefinedinNote1andlistedinNote3(a)toourconsolidatedfinancialstatementsincorporatedinItem18areincorporatedintotheconsolidatedfinancialstatementsthesesubsidiarycompaniesarealsoidentifiedwiththeircorrespondingownershippercentagesinConsolidatedStructureofPEMEXonpage4.PetrleosMexicanos,thesubsidiaryentitiesandthesubsidiarycompaniesarecollectivelyreferredtoasPEMEXorwe.Asofthedateofthisreport,weareintheprocessofreorganizingourcorporatestructure.SeeItem4InformationontheCompanyHistoryandDevelopmentEnergyReformformoredetails.
ReferenceshereintoU.S.$,$,U.S.dollarsordollarsaretoUnitedStatesdollars.ReferenceshereintopesosorPs.aretothelegalcurrencyofMexico.ReferenceshereintoeurosoraretothelegalcurrencyoftheEuropeanEconomicandMonetaryUnion.ReferenceshereintopoundsoraretothelegalcurrencyoftheUnitedKingdom.ReferenceshereintoSwissfrancsorCHFaretothelegalcurrencyoftheSwissConfederation.ReferenceshereintoJapaneseyenoraretothelegalcurrencyofJapan.ReferenceshereintoAustraliandollarsorAUDaretothelegalcurrencyofAustralia.Thetermbillionasusedhereinmeansonethousandmillion.
OurconsolidatedfinancialstatementsincludedinthisreportwerepreparedinaccordancewithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.WereferinthisreporttoInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoardasIFRS.Inaddition,thesefinancialstatementswereauditedinaccordancewiththeInternationalStandardsonAuditing,asrequiredbytheComisinNacionalBancariaydeValores(NationalBankingandSecuritiesCommission,ortheCNBV)forpurposesoffilingwiththeBolsaMexicanadeValores,S.A.B.deC.V.(MexicanStockExchange,ortheBMV)andwiththeCNBV,andinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),orPCAOB,forpurposesoffilingswiththeU.S.SecuritiesandExchangeCommission,orSEC.
TheregulationsoftheSECdonotrequireforeignprivateissuersthatpreparetheirfinancialstatementsonthebasisofIFRStoreconcilesuchfinancialstatementstoUnitedStatesGenerallyAcceptedAccountingPrinciples,whichwerefertoasU.S.GAAP.Accordingly,whilewehaveinthepastreconciledourconsolidatedfinancialstatementspreparedinaccordancewithNormasdeInformacinFinancieraMexicanas(MexicanFinancialReportingStandards,orMexicanFRS)toU.S.GAAP,thosereconciliationsarenolongerpresentedinourfilingswiththeSEC.Wedo,however,continuetoprovidethedisclosurerequiredundertheU.S.FinancialAccountingStandardsBoardAccountingStandardsCodification(ASC)Topic932ExtractiveActivitiesOilandGas(whichwerefertoasASCTopic932),asthisisrequiredregardlessofthebasisofaccountingonwhichweprepareourfinancialstatements.
Wemaintainourconsolidatedfinancialstatementsandaccountingrecordsinpesos.Unlessotherwiseindicated,wehavetranslatedallpesoamountstoU.S.dollarsinthisForm20F,includingallconveniencetranslationsofourconsolidatedfinancialstatementsincludedherein,atanexchangerateofPs.14.7180=U.S.$1.00,whichistheexchangeratethattheSecretaradeHaciendayCrditoPblico(MinistryofFinanceandPublicCredit,ortheSHCP)instructedustouseonDecember31,2014.YoushouldnotconstruethesetranslationsfrompesosintodollarsasactuallyrepresentingsuchU.S.dollaramountsormeaningthatyoucouldconvertsuchamountsintoU.S.dollarsattheratesindicated.Mexicohasafreemarketforforeignexchange,andtheMexicanGovernmentallowsthepesotofloatfreelyagainsttheU.S.dollar.TherecanbenoassurancethattheMexicanGovernmentwillmaintainitscurrentpolicieswithregardtothepesoorthatthepesowillnotdepreciateorappreciatesignificantlyinthefuture.Duetothevolatilityofthepeso/U.S.dollarexchangerate,theexchangerateonanydatesubsequenttothedatehereofcouldbemateriallydifferentfromtherateindicatedabove.SeeItem3KeyInformationExchangeRatesforinformationregardingtheratesofexchangebetweenpesosandU.S.dollars.
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SPECIALNOTEREGARDINGMEXICANENERGYREFORM
OnDecember20,2013,amendmentstoArticles25,27and28oftheConstitucinPolticadelosEstadosUnidosMexicanos(PoliticalConstitutionoftheUnitedMexicanStates,ortheMexicanConstitution)werepublishedastheDecretoporelquesereformanyadicionandiversasdisposicionesdelaConstitucinPolticadelosEstadosUnidosMexicanos,enMateriadeEnerga(DecreethatamendsandsupplementsvariousprovisionsoftheMexicanConstitutionrelatingtoenergymatters,whichwerefertoastheEnergyReformDecree)intheDiarioOficialdelaFederacin(OfficialGazetteoftheFederation)andtookeffectonDecember21,2013.TheEnergyReformDecreeincludesartculostransitorios(transitionalarticles)thatsetforththegeneralframeworkfortheimplementinglawsthatarerequiredtogiveeffecttotheEnergyReformDecree,whichwerefertoastheSecondaryLegislation.OnAugust6,2014,theMexicanCongresscompletedtheprocessofapprovingtheSecondaryLegislation,whichwassignedintolawbythePresidentofMexico,Mr.EnriquePeaNieto,andpublishedintheOfficialGazetteoftheFederationonAugust11,2014.TheSecondaryLegislationincludesninenewlaws,amongothers,thenewLeydePetrleosMexicanos(PetrleosMexicanosLaw)andtheLeydeHidrocarburos(HydrocarbonsLaw),aswellasamendmentstoseveralexistinglaws.Asofthedateofthisreport,certainprovisionsoftheSecondaryLegislation,includingsomeprovisionsofthePetrleosMexicanosLaw,arenotyeteffective.SeeItem4InformationontheCompanyHistoryandDevelopmentEnergyReformformoredetailsregardingtheimplementationoftheSecondaryLegislation.
OnNovember18,2014,pursuanttothePetrleosMexicanosLaw,theBoardofDirectorsofPetrleosMexicanosapprovedtheDirectorGeneralsproposalforourcorporatereorganization,whichprovidesforthefutureformationofthenewproductivestateownedsubsidiaries,PemexExploracinyProduccin(PemexExplorationandProduction),PemexTransformacinIndustrial(PemexIndustrialTransformation),PemexPerforacinyServicios(PemexDrillingandServices),PemexLogstica(PemexLogistics),PemexCogeneracinyServicios(PemexCogenerationandServices),PemexFertilizantes(PemexFertilizers)andPemexEtileno(PemexEthyleneand,togetherwithPemexExplorationandProduction,PemexIndustrialTransformation,PemexDrillingandServices,PemexLogistics,PemexCogenerationandServicesandPemexFertilizers,collectivelyreferredtoasthenewsubsidiaryentities).SeeItem4InformationontheCompanyHistoryandDevelopmentEnergyReformformoreinformationregardingourcorporatereorganization,includingtheacuerdosdecreacin(creationresolutions)foreachofthenewsubsidiaryentitiesthatwereapprovedbytheBoardofDirectorsofPetrleosMexicanosonMarch27,2015andpublishedintheOfficialGazetteoftheFederationonApril28,2015.
PRESENTATIONOFINFORMATIONCONCERNINGRESERVES
TheprovedhydrocarbonreservesincludedinthisreportfortheyearendedDecember31,2014arethosethatwehavetherighttoextractandsellbasedontheMexicanGovernmentsassignmentstousinAugust2014throughtheprocesscommonlyreferredtoasRoundZero.SeeItem4InformationontheCompanyHistoryandDevelopmentEnergyReformforadescriptionoftheRoundZeroprocess.TheestimatesofourprovedreservesofcrudeoilandnaturalgasforthefiveyearsendedDecember31,2014includedinthisreporthavebeencalculatedaccordingtothetechnicaldefinitionsrequiredbytheSEC.DeGolyerandMacNaughton,Netherland,SewellInternational,S.deR.L.deC.V.(whichwerefertoasNetherlandSewell)andRyderScottCompany,L.P.(whichwerefertoasRyderScott)conductedreservesauditsofourestimatesofourprovedhydrocarbonreservesasofDecember31,2014orJanuary1,2015,asapplicable.Allreservesestimatesinvolvesomedegreeofuncertainty.Foradescriptionoftherisksrelatingtoreservesandreservesestimates,seeItem3KeyInformationRiskFactorsRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentInformationonhydrocarbonreservesinthisreportisbasedonestimates,whichareuncertainandsubjecttorevisions,Wemustmakesignificantcapitalexpenditurestomaintainourcurrentproductionlevels,andtomaintain,aswellasincrease,ourprovedhydrocarbonreserves.Reductionsinourincome,adjustmentstoourcapitalexpendituresbudgetandinabilitytoobtainfinancingmaylimitourabilitytomakecapitalinvestmentsandTheMexicannation,notus,ownsthehydrocarbonreservesinMexicolocatedinthesubsoilofMexicoandourrighttocontinuetoextractthesereservesissubjecttotheapprovaloftheMinistryofEnergy.
FORWARDLOOKINGSTATEMENTS
ThisForm20Fcontainswords,suchasbelieve,expect,anticipateandsimilarexpressionsthatidentifyforwardlookingstatements,whichreflectourviewsaboutfutureeventsandfinancialperformance.Wehavemadeforwardlookingstatementsthataddress,amongotherthings,our:
explorationandproductionactivities,includingdrilling
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activitiesrelatingtoimport,export,refining,petrochemicalsandtransportationofpetroleum,naturalgasandoilproducts
projectedandtargetedcapitalexpendituresandothercosts,commitmentsandrevenuesand
liquidityandsourcesoffunding.
Actualresultscoulddiffermateriallyfromthoseprojectedinsuchforwardlookingstatementsasaresultofvariousfactorsthatmaybebeyondourcontrol.Thesefactorsinclude,butarenotlimitedto:
changesininternationalcrudeoilandnaturalgasprices
effectsonusfromcompetition,includingonourabilitytohireandretainskilledpersonnel
limitationsonouraccesstosourcesoffinancingoncompetitiveterms
ourabilitytofind,acquireorgainaccesstoadditionalreservesandtodevelopthereservesthatweobtainsuccessfully
uncertaintiesinherentinmakingestimatesofoilandgasreserves,includingrecentlydiscoveredoilandgasreserves
technicaldifficulties
significantdevelopmentsintheglobaleconomy
significanteconomicorpoliticaldevelopmentsinMexico,includingdevelopmentsrelatingtotheimplementationoftheSecondaryLegislation
developmentsaffectingtheenergysectorand
changesinourlegalregimeorregulatoryenvironment,includingtaxandenvironmentalregulations.
Accordingly,youshouldnotplaceunduerelianceontheseforwardlookingstatements.Inanyevent,thesestatementsspeakonlyasoftheirdates,andweundertakenoobligationtoupdateorreviseanyofthem,whetherasaresultofnewinformation,futureeventsorotherwise.
Foradiscussionofimportantfactorsthatcouldcauseactualresultstodiffermateriallyfromthosecontainedinanyforwardlookingstatement,seeItem3KeyInformationRiskFactors.
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PARTIItem1. IdentityofDirectors,SeniorManagementandAdvisers
Notapplicable.
Item2. OfferStatisticsandExpectedTimetable
Notapplicable.
Item3. KeyInformation
SELECTEDFINANCIALDATA
Theselectedstatementofcomprehensiveincome,statementoffinancialpositionandcashflowsdatasetforthbelowasofandforthefouryearsendedDecember31,2014havebeenderivedfrom,andshouldbereadinconjunctionwith,ourconsolidatedfinancialstatementsasofDecember31,2013and2014andfortheyearsendedDecember31,2012,2013and2014,whichareincludedinItem18ofthisreport.OurconsolidatedfinancialstatementsforeachofthefiscalyearsendedDecember31,2011and2012wereauditedbyKPMGCrdenasDosal,S.C.,anindependentregisteredpublicaccountingfirm.OurconsolidatedfinancialstatementsforeachofthefiscalyearsendedDecember31,2013and2014wereauditedbyCastilloMirandayCompaa,S.C.(whichwerefertoasBDOMexico),anindependentregisteredpublicaccountingfirm.CertainamountsintheconsolidatedfinancialstatementsfortheyearsendedDecember31,2012and2013havebeenreclassifiedtoconformthepresentationoftheamountsintheconsolidatedfinancialstatementsfortheyearendedDecember31,2014.Thesereclassificationsarenotsignificanttotheconsolidatedfinancialstatementsandhadnoimpactonourconsolidatednetincome.
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SelectedFinancialDataofPEMEX YearendedDecember31,(1)(2) 2011 2012 2013 2014 2014(3)
(inmillionsofpesos,exceptratios) (inmillionsofU.S.dollars)
StatementofComprehensiveIncomeDataNetsales Ps.1,558,454 Ps.1,646,912 Ps.1,608,205 Ps.1,586,728 U.S.$107,809Operatingincome 861,311 905,339 727,622 615,480 41,818Financingincome 4,198 2,532 8,736 3,014 205Financingcost (35,154) (46,011) (39,586) (51,559) (3,503)Derivativefinancialinstruments(cost)incomeNet (1,697) (6,258) 1,311 (9,439) (641)Exchange(loss)gainNet (60,143) 44,846 (3,951) (76,999) (5,232)Net(loss)incomefortheperiod (106,942) 2,600 (170,058) (265,543) (18,042)
StatementofFinancialPositionData(endofperiod)Cashandcashequivalents 114,977 119,235 80,746 117,989 8,017Totalassets 1,981,374 2,024,183 2,047,390 2,128,368 144,610Longtermdebt 672,657 672,618 750,563 997,384 67,766Totallongtermliabilities 1,624,752 2,059,445 1,973,446 2,561,930 174,068Totalequity(deficit) 103,177 (271,066) (185,247) (767,721) (52,162)
StatementofCashFlowsDepreciationandamortization 127,380 140,538 148,492 143,075 9,721Acquisitionofwells,pipelines,properties,plantandequipment(4) 167,014 197,509 245,628 230,679 15,673
OtherFinancialDataRatioofearningstofixedcharges(5)(6) 1.01
(1) WehavenotincludedselectedconsolidatedfinancialdataasofandfortheyearendedDecember31,2010,aswebeganpresentingourfinancialstatementsinaccordancewithIFRSforthe
fiscalyearendingDecember31,2012,withanofficialIFRSadoptiondateofJanuary1,2012andatransitiondatetoIFRSofJanuary1,2011.Basedonsuchadoptionandtransitiondates,wewerenotrequiredtopreparefinancialstatementsinaccordancewithIFRSasofandfortheyearendedDecember31,2010andthereforeareunabletopresentselectedfinancialdatainaccordancewithIFRSforthisperiodwithoutunreasonableeffortandexpense.
(2) IncludesPetrleosMexicanos,thesubsidiaryentitiesandthesubsidiarycompanieslistedinNote3(a)toourconsolidatedfinancialstatementsincludedherein.(3) TranslationsintoU.S.dollarsofamountsinpesoshavebeenmadeattheexchangerateestablishedbytheSHCPforaccountingpurposesofPs.14.7180=U.S.$1.00atDecember31,2014.
SuchtranslationsshouldnotbeconstruedasarepresentationthatthepesoamountshavebeenorcouldbeconvertedintoU.S.dollaramountsattheforegoingoranyotherrate.(4) Includescapitalizedfinancingcost.SeeNote10toourconsolidatedfinancialstatementsincludedhereinandItem5OperatingandFinancialReviewandProspectsLiquidityandCapital
Resources.(5) Earnings,forthispurpose,consistofpretaxincome(loss)fromcontinuingoperationsbeforeincomefromequityinvestees,plusfixedcharges,minusinterestcapitalizedduringtheperiod,plus
theamortizationofcapitalizedinterestduringtheperiodandplusdividendsreceivedonequityinvestments.Pretaxincome(loss)iscalculatedafterthedeductionofhydrocarbonduties,butbeforethedeductionofthehydrocarbonincometaxandotherincometaxes.Fixedchargesforthispurposeconsistofthesumofinterestexpenseplusinterestcapitalizedduringtheperiod,plusamortizationpremiumsrelatedtoindebtednessandplustheestimatedinterestwithinrentalexpense.Fixedchargesdonottakeintoaccountexchangegainorlossattributabletoourindebtedness.
(6) EarningsfortheyearsendedDecember31,2011,2013and2014wereinsufficienttocoverfixedcharges.TheamountbywhichfixedchargesexceededearningswasPs.106,476million,Ps.165,217millionandPs.283,640millionfortheyearsendedDecember31,2011,2013and2014,respectively.
Source:PEMEXsconsolidatedfinancialstatements,preparedinaccordancewithIFRS,asitrelatestotheSelectedStatementsofComprehensiveIncome,StatementofFinancialPositionandStatementofCashFlowsDataandPetrleosMexicanos,asitrelatestoOtherFinancialData.
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EXCHANGERATES
Thefollowingtablesetsforth,fortheperiodsindicated,thehigh,low,averageandperiodendexchangeratesforthepurchaseofU.S.dollars,expressedinpesosperU.S.dollar.Theserateshavenotbeenrestatedinconstantcurrencyunits.
Period ExchangeRate YearEndedDecember31, High Low Average(1) PeriodEnd2010 13.194 12.156 12.635 12.3832011 14.254 11.505 12.464 13.9512012 14.365 12.625 13.140 12.9642013 13.433 11.976 12.857 13.0982014 14.794 12.846 13.370 14.750
November2014 13.921 13.536 13.615 13.921December2014 14.794 13.936 14.520 14.750
2015January2015 15.005 14.564 14.700 15.005February2015 15.103 14.748 14.917 14.939March2015 15.582 14.933 15.237 15.245April2015(2) 15.428 14.803 15.177 15.383
(1) Averageofmonthendrates,exceptfor2014and2015monthlyexchangerates.(2) FortheperiodfromApril1,2015toApril24,2015.Source:NoonbuyingrateforcabletransfersinNewYorkreportedbytheFederalReserve.
ThenoonbuyingrateforcabletransfersinNewYorkreportedbytheFederalReserveonApril24,2015wasPs.15.383=U.S.$1.00.
RISKFACTORS
RiskFactorsRelatedtoOurOperations
Crudeoilandnaturalgaspricesarevolatileandlowcrudeoilandnaturalgaspricesadverselyaffectourincomeandcashflowsandtheamountofhydrocarbonreservesthatwehavetherighttoextractandsell.
Internationalcrudeoilandnaturalgaspricesaresubjecttoglobalsupplyanddemandandfluctuateduetomanyfactorsbeyondourcontrol.Thesefactorsincludecompetitionwithintheoilandnaturalgasindustry,thepricesandavailabilityofalternativesourcesofenergy,internationaleconomictrends,exchangeratefluctuations,expectationsofinflation,domesticandforeigngovernmentregulationsorinternationallaws,politicalandothereventsinmajoroilandnaturalgasproducingandconsumingnationsandactionstakenbyoilexportingcountries,tradingactivityinoilandnaturalgasandtransactionsinderivativefinancialinstruments(whichwerefertoasDFIs)relatedtooilandgas.
Wheninternationalcrudeoil,petroleumproductand/ornaturalgaspricesarelow,weearnlessrevenueand,therefore,generatelowercashflowsandearnlessincomebeforetaxesanddutiesbecauseourcostsremainroughlyconstant.Conversely,whencrudeoil,petroleumproductandnaturalgaspricesarehigh,weearnmorerevenueandourincomebeforetaxesanddutiesincreases.Duringthefirsteightmonthsof2014,theMexicancrudeoilexportpricerosetomorethanU.S.$100.00perbarrel,andtheweightedaveragepricefortheyearwasU.S.$86.00perbarrel.However,beginninginSeptember2014,crudeoilpricesexperiencedasharpdecline,andinDecember2014,theweightedaverageMexicancrudeoilexportpricefelltoalowofU.S.$45.45perbarrel.ThissharpdeclineofcrudeoilpriceshadadirecteffectonourresultsofoperationsfortheyearendedDecember31,2014andourfinancialconditionasofDecember31,2014,andthecontinuationofpricesatoraroundtheselevelsorfuturedeclinesininternationalcrudeoilandnaturalgaspriceswillhavesimilareffects.Duringthefirstmonthof2015,theweightedaverageMexicancrudeoilexportpricedeclinedfurthertoU.S.$37.36perbarrel.ThesefluctuationsmayalsoaffectestimatesoftheamountofMexicoshydrocarbonreservesthatwehavetherighttoextractandsell.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentInformationonhydrocarbonreservesinthisreportisbasedonestimates,whichareuncertainandsubjecttorevisionsbelowinthisItem3andItem11QuantitativeandQualitativeDisclosuresaboutMarketRiskHydrocarbonPriceRisk.
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Weareanintegratedoilandgascompanyandareexposedtoproduction,equipmentandtransportationrisks,criminalactsanddeliberateactsofterror.
Wearesubjecttoseveralrisksthatarecommonamongoilandgascompanies.Theserisksincludeproductionrisks(fluctuationsinproductionduetooperationalhazards,naturaldisastersorweather,accidents,etc.),equipmentrisks(relatingtotheadequacyandconditionofourfacilitiesandequipment)andtransportationrisks(relatingtotheconditionandvulnerabilityofpipelinesandothermodesoftransportation).Morespecifically,ourbusinessissubjecttotherisksofexplosionsinpipelines,refineries,plants,drillingwellsandotherfacilities,oilspills,hurricanesintheGulfofMexicoandothernaturalorgeologicaldisastersandaccidents,firesandmechanicalfailures.Criminalattemptstodivertourcrudeoil,naturalgasorrefinedproductsfromourpipelinenetworkandfacilitiesforillegalsalehaveresultedinexplosions,propertyandenvironmentaldamage,injuriesandlossoflife.
Ourfacilitiesarealsosubjecttotheriskofsabotage,terrorismandcyberattacks.InJuly2007,twoofourpipelineswereattacked.InSeptember2007,sixdifferentsiteswereattackedand12ofourpipelineswereaffected.Theoccurrenceoftheseincidentsrelatedtotheproduction,processingandtransportationofoilandoilproductscouldresultinpersonalinjuries,lossoflife,environmentaldamagefromthesubsequentcontainment,cleanupandrepairexpenses,equipmentdamageanddamagetoourfacilities.Ashutdownoftheaffectedfacilitiescoulddisruptourproductionandincreaseourproductioncosts.Asofthedateofthisreport,therehavebeennosimilaroccurrencessince2007.Althoughwehaveestablishedaninformationsecurityprogram,whichincludescybersecuritysystemsandprocedurestoprotectourinformationtechnology,andhavenotyetsufferedacyberattack,iftheintegrityofourinformationtechnologywereevercompromisedduetoacyberattack,ourbusinessoperationscouldbedisruptedandourproprietaryinformationcouldbelostorstolen.
Wepurchasecomprehensiveinsurancepoliciescoveringmostoftheseriskshowever,thesepoliciesmaynotcoverallliabilities,andinsurancemaynotbeavailableforsomeoftheconsequentialrisks.Therecanbenoassurancethataccidentsoractsofterrorwillnotoccurinthefuture,thatinsurancewilladequatelycovertheentirescopeorextentofourlossesorthatwemaynotbefounddirectlyliableinconnectionwithclaimsarisingfromtheseorotherevents.SeeItem4InformationontheCompanyBusinessOverviewPEMEXCorporateMattersInsurance.
Wehaveasubstantialamountofliabilitiesthatcouldadverselyaffectourfinancialconditionandresultsofoperations.
Wehaveasubstantialamountofdebt.AsofDecember31,2014,ourtotalindebtedness,includingaccruedinterest,wasapproximatelyU.S.$77.7billion,innominalterms,whichisa20.8%increaseascomparedtoourtotalindebtedness,includingaccruedinterest,ofapproximatelyU.S.$64.3billionatDecember31,2013.Ourlevelofdebtmayincreasefurtherintheshortormediumtermandmayhaveanadverseeffectonourfinancialconditionandresultsofoperations.Toserviceourdebt,wehavereliedandmaycontinuetorelyonacombinationofcashflowsprovidedbyoperations,drawdownsunderouravailablecreditfacilitiesandtheincurrenceofadditionalindebtedness.
Certainratingagencieshaveexpressedconcernsregardingthetotalamountofourdebt,ourincreaseinindebtednessoverthelastseveralyearsandoursubstantialunfundedreserveforretirementpensionsandsenioritypremiums,whichasofDecember31,2014wasequaltoapproximatelyU.S.$100.2billion.ThoughtheSecondaryLegislationenablestheMexicanGovernmenttoassumeaportionofthepensionliabilitiesofPetrleosMexicanosandthesubsidiaryentities,theamountthatthisportionwillrepresentisdependentonourabilitytomeettheconditionssetforthintheapplicabledecree,andwecannotprovideassurancesthatwewillbeabletomeettheseconditionswithinthespecifiedtimeframe.Moreover,wecannotprovideassurancesthattheMexicanGovernmentspotentialassumptionofanyportionofourunfundedreserveinthefuturewilleliminatetheconcernsofratingagencies.
Duetoourheavytaxburden,wehaveresortedtodebtfinancingtocarryoutourcapitalinvestmentprojects.Anyloweringofourcreditratingsmayhaveadverseconsequencesonourabilitytoaccessthefinancialmarketsand/orourcostoffinancing.Ifwewereunabletoobtainfinancingonfavorableterms,thiscouldhamperourabilitytoobtainfurtherfinancingaswellashamperinvestmentinprojectsfinancedthroughdebt.Asaresult,wemaynotbeabletomakethecapitalexpendituresneededtomaintainourcurrentproductionlevelsandtomaintain,aswellasincrease,provedhydrocarbonreserves,whichmayadverselyaffectourfinancialconditionandresultsofoperations.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentWemustmakesignificantcapitalexpenditurestomaintainourcurrentproductionlevels,andtomaintain,aswellasincrease,ourprovedhydrocarbonreserves.Reductionsinourincome,adjustmentstoourcapitalexpendituresbudgetandinabilitytoobtainfinancingmaylimitourabilitytomakecapitalinvestmentsbelowinthisItem3.
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WearesubjecttoMexicanandinternationalanticorruption,antibriberyandantimoneylaunderinglaws.Ourfailuretocomplywiththeselawscouldresultinpenalties,whichcouldharmourreputationandhaveanadverseeffectonourbusiness,resultsofoperationsandfinancialcondition.
WearesubjecttoMexicanandinternationalanticorruption,antibriberyandantimoneylaunderinglaws.SeeItem4InformationontheCompanyGeneralRegulatoryFramework.Althoughwemaintainpoliciesandprocessesintendedtocomplywiththeselaws,includingthereviewofourinternalcontroloverfinancialreporting,wecannotensurethatthesecompliancepoliciesandprocesseswillpreventintentional,recklessornegligentactscommittedbyourofficersoremployees.
Ifwefailtocomplywithanyapplicableanticorruption,antibriberyorantimoneylaunderinglaws,weandourofficersandemployeesmaybesubjecttocriminal,administrativeorcivilpenaltiesandotherremedialmeasures,whichcouldhavematerialadverseeffectsonourbusiness,financialconditionandresultsofoperations.Anyinvestigationofpotentialviolationsofanticorruption,antibriberyorantimoneylaunderinglawsbygovernmentalauthoritiesinMexicoorotherjurisdictionscouldresultinaninabilitytoprepareourconsolidatedfinancialstatementsinatimelymanner.Thiscouldadverselyimpactourreputation,abilitytoaccessthefinancialmarketsandabilitytoobtaincontracts,assignments,permitsandothergovernmentauthorizationsnecessarytoparticipateinourindustry,which,inturn,couldhaveadverseeffectsonourbusiness,resultsofoperationsandfinancialcondition.
OurcompliancewithenvironmentalregulationsinMexicocouldresultinmaterialadverseeffectsonourresultsofoperations.
AwiderangeofgeneralandindustryspecificMexicanfederalandstateenvironmentallawsandregulationsapplytoouroperationstheselawsandregulationsareoftendifficultandcostlytocomplywithandcarrysubstantialpenaltiesfornoncompliance.Thisregulatoryburdenincreasesourcostsbecauseitrequiresustomakesignificantcapitalexpendituresandlimitsourabilitytoextracthydrocarbons,resultinginlowerrevenues.Foranestimateofouraccruedenvironmentalliabilities,seeItem4InformationontheCompanyEnvironmentalRegulationEnvironmentalLiabilities.Inaddition,wehaveagreedwithothercompaniestomakeinvestmentstoreduceourcarbondioxideemissions.SeeItem4InformationontheCompanyEnvironmentalRegulationGlobalClimateChangeandCarbonDioxideEmissionsReduction.
RiskFactorsRelatedtoMexico
TheeffectsoftheimplementationofthenewlegalframeworkapplicabletotheenergysectorinMexicoareuncertainbutlikelytobematerial,andmayhaveanegativeimpactonusintheshortandmediumterm.
TheenactmentoftheSecondaryLegislationimplementingthereformstotheMexicanenergysectorthatwerecontemplatedintheEnergyReformDecreehashadasignificanteffectonus,andtheseeffectscouldbeadversetoourinterestsintheshortandmediumterm,asfurtherdescribedbelow.
AspartoftheimplementationoftheEnergyReformDecree,theMexicanGovernmentannouncedtheresultsofRoundZeroinAugust2014,throughwhichwewereassignedoilandgasexplorationandextractionrightsincertainareasinMexico.WearerequiredtocomplywiththeexplorationplansanddevelopmentplansfortheextractionofhydrocarbonsthatwesubmittedtotheSecretaradeEnerga(MinistryofEnergy)inconnectionwithourassignments.IfwefailtocomplywithourexplorationanddevelopmentforextractionplanswithinthespecifiedtimeperiodauthorizedbyMinistryofEnergy,ourrightstocontinueexploringanddevelopingtheunderlyingareasmayberevoked,whichmayadverselyaffectouroperatingresultsandfinancialcondition.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentWemustmakesignificantcapitalexpenditurestomaintainourcurrentproductionlevels,andtomaintain,aswellasincrease,ourprovedhydrocarbonreserves.Reductionsinourincome,adjustmentstoourcapitalexpendituresbudgetandinabilitytoobtainfinancingmaylimitourabilitytomakecapitalinvestmentsbelowinthisItem3.
Although,asofthedateofthisreport,weremaintheonlyentitythatconductsexplorationandextractionactivitiesinMexico,theSecondaryLegislationallowstheMexicanGovernmenttoenterintoagreementswithotheroilandgascompaniestoconducttheseactivities.Asaresult,weexpecttofacecompetitionfortherighttoexploreanddevelopnewoilandgasreservesinMexico.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentIncreasedcompetitionintheMexicanenergysectormayhaveanegativeimpactonourresultsofoperationsandfinancialconditionsbelowinthisItem3.WhiletheparticipationofotheroilandgascompaniesintheMexicanenergysectorisintendedtoprovideanewsourceofrevenuesfortheMexicanGovernmentandtherebyreduceitsrelianceonourrevenues,wecannotprovideassurancesthattheamountofourpaymentstotheMexicanGovernmentwillsignificantlydecreaseinthenearfuture.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentWemakesignificantpaymentstotheMexicanGovernment,whichmaylimitourcapacitytoexpandourinvestmentprogrambelowinthisItem3.
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Asofthedateofthisreport,certainprovisionsoftheSecondaryLegislation,includingsomeprovisionsofthePetrleosMexicanosLaw,arenotyeteffective.Accordingly,theeffectsoftheimplementationremainuncertain,althoughtheseeffectsarelikelytobematerialandmayhaveanegativeeffectonourfinancialcondition,resultsofoperationandprospectsintheshortandmediumterm.Moreover,asaresultoflongstandingrestrictionsincludedincertainofourfinancingagreementsthatwerebasedonthelegalframeworkineffectbeforetheEnergyReformDecreeandtheSecondaryLegislationwereenacted,theseeffectsmaycauseustodefaultontheseagreementsintheeventthatweareunabletoamendthemorobtainwaiversfromourlenders,asmayberequiredinconnectionwiththeongoingimplementationoftheSecondaryLegislation.SeeItem5OperatingandFinancialReviewandProspectsLiquidityandCapitalResourcesAmendmentstoCertainFinancingAgreementsformoreinformationregardingthewaiversandamendmentsthatwehaveobtainedasofthedateofthisreport.
EconomicconditionsandgovernmentpoliciesinMexicoandelsewheremayhaveamaterialimpactonouroperations.
AdeteriorationinMexicoseconomiccondition,socialinstability,politicalunrestorotheradversesocialdevelopmentsinMexicocouldadverselyaffectourbusinessandfinancialcondition.Theseeventscouldalsoleadtoincreasedvolatilityinthefinancialmarkets,therebyaffectingourabilitytoobtainnewfinancingandserviceourdebt.Additionally,theMexicanGovernmentrecentlycutspendinginresponsetoadownwardtrendininternationalcrudeoilprices,anditmaycutspendinginthefuture.SeeRiskFactorsRelatedtoourRelationshipwiththeMexicanGovernmentTheMexicanGovernmentcontrolsusanditcouldlimitourabilitytosatisfyourexternaldebtobligationsorcouldreorganizeortransferusorourassetsbelowinthisItem3.ThesecutscouldadverselyaffecttheMexicaneconomyand,consequently,ourbusiness,financialcondition,operatingresultsandprospects.
Inthepast,Mexicohasexperiencedseveralperiodsofslowornegativeeconomicgrowth,highinflation,highinterestrates,currencydevaluationandothereconomicproblems.Theseproblemsmayworsenorreemerge,asapplicable,inthefutureandcouldadverselyaffectourbusinessandabilitytoserviceourdebt.Aworseningofinternationalfinancialoreconomicconditions,suchasaslowdowningrowthorrecessionaryconditionsinMexicostradingpartners,includingtheUnitedStates,ortheemergenceofanewfinancialcrisis,couldhaveadverseeffectsontheMexicaneconomy,ourfinancialconditionandourabilitytoserviceourdebt.
ChangesinMexicosexchangecontrollawsmayhamperourabilitytoserviceourforeigncurrencydebt.
TheMexicanGovernmentdoesnotcurrentlyrestricttheabilityofMexicancompaniesorindividualstoconvertpesosintoothercurrencies.However,wecannotprovideassurancesthattheMexicanGovernmentwillmaintainitscurrentpolicieswithregardtothepeso.Inthefuture,theMexicanGovernmentcouldimposearestrictiveexchangecontrolpolicy,asithasdoneinthepast.MexicanGovernmentpoliciespreventingusfromexchangingpesosintoU.S.dollarscouldhamperourabilitytoserviceourforeigncurrencyobligations,includingourdebt,themajorityofwhichisdenominatedincurrenciesotherthanpesos.
PoliticalconditionsinMexicocouldmateriallyandadverselyaffectMexicaneconomicpolicyand,inturn,ouroperations.
PoliticaleventsinMexicomaysignificantlyaffectMexicaneconomicpolicyand,consequently,ouroperations.OnDecember1,2012,Mr.EnriquePeaNieto,amemberofthePartidoRevolucionarioInstitucional(InstitutionalRevolutionaryParty,orPRI),formallyassumedofficeforasixyeartermasthePresidentofMexico.Asofthedateofthisreport,nopoliticalpartyholdsasimplemajorityineitherhouseoftheMexicanCongress.OnJune7,2015,federalelectionswilltakeplaceinMexicotoelect500federaldeputiesoftheMexicanCongress.
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Mexicohasexperiencedaperiodofincreasingcriminalactivity,whichcouldaffectouroperations.
Inrecentyears,Mexicohasexperiencedaperiodofincreasingcriminalactivity,primarilyduetotheactivitiesofdrugcartelsandrelatedcriminalorganizations.Inaddition,thedevelopmentoftheillicitmarketinfuelsinMexicohasledtoincreasesintheftandillegaltradeinthefuelsthatweproduce.Inresponse,theMexicanGovernmenthasimplementedvarioussecuritymeasuresandstrengtheneditsmilitaryandpoliceforces,andwehavealsoestablishedvariousstrategicmeasuresaimedatdecreasingincidentsoftheftandothercriminalactivitydirectedatourfacilitiesandproducts.SeeItem8FinancialInformationLegalProceedingsActionsAgainsttheIllicitMarketinFuels.Despitetheseefforts,criminalactivitycontinuestoexistinMexico,someofwhichmaytargetourfacilitiesandproducts.Theseactivities,theirpossibleescalationandtheviolenceassociatedwiththemmayhaveanegativeimpactonourfinancialconditionandresultsofoperations.
RiskFactorsRelatedtoourRelationshipwiththeMexicanGovernment
TheMexicanGovernmentcontrolsusanditcouldlimitourabilitytosatisfyourexternaldebtobligationsorcouldreorganizeortransferusorourassets.
WearecontrolledbytheMexicanGovernmentandourannualbudget,whichisapprovedbytheCmaradeDiputados(ChamberofDeputies),canbeadjustedbytheMexicanGovernment,asdescribedbelow.PursuanttothePetrleosMexicanosLaw,PetrleosMexicanoswastransformedfromadecentralizedpublicentitytoaproductivestateownedcompanyonOctober7,2014.ThePetrleosMexicanosLawestablishesaspecialregimegoverning,amongotherthings,ourbudget,debtlevelsandadministrativeliabilities,whichtookeffectonDecember2,2014,withtheexceptionofcertainprovisions.ThisspecialregimeprovidesPetrleosMexicanoswithadditionaltechnicalandmanagerialautonomy,aswellasdiscretionwithrespecttocertainelementsofourbudget.Notwithstandingthisincreasedautonomy,theMexicanGovernmentstillcontrolsusandhasthepowertoadjustourfinancialbalancegoal,whichrepresentsourtargetednetcashflowforthefiscalyearbasedonourprojectedrevenuesandexpenses,andtheceilingonourannualwageandsalaryexpenditures.TheMexicanGovernmentsauthoritytoadjustourannualbudgetmaycompromiseourabilitytodevelopourreservesandtosuccessfullycompetewithotheroilandgascompaniesthatentertheMexicanenergysector.SeeItem4InformationontheCompanyHistoryandDevelopmentCapitalExpendituresandInvestmentsCapitalExpendituresBudgetformoreinformationaboutourFebruary2015budgetadjustmentandGeneralRegulatoryFrameworkformoreinformationabouttheMexicanGovernmentsauthoritywithrespecttoourbudget.Inaddition,theMexicanGovernmentscontroloveruscouldadverselyaffectourabilitytomakepaymentsunderanysecuritiesissuedbyPetrleosMexicanos.AlthoughPetrleosMexicanosiswhollyownedbytheMexicanGovernment,ourfinancingobligationsdonotconstituteobligationsofandarenotguaranteedbytheMexicanGovernment.
TheMexicanGovernmentsagreementswithinternationalcreditorsmayaffectourexternaldebtobligations.IncertainpastdebtrestructuringsoftheMexicanGovernment,PetrleosMexicanosexternalindebtednesswastreatedonthesametermsasthedebtoftheMexicanGovernmentandotherpublicsectorentities,anditmaybetreatedonsimilartermsinanyfuturedebtrestructuring.Inaddition,Mexicohasenteredintoagreementswithofficialbilateralcreditorstoreschedulepublicsectorexternaldebt.Mexicohasnotrequestedrestructuringofbondsordebtowedtomultilateralagencies.
TheHydrocarbonsLawthatwasadoptedaspartoftheSecondaryLegislationcontemplatesthetransferofcertainofourassetstoCentroNacionaldeControldelGasNatural(NationalCenterofNaturalGasControl,orCENAGAS)inthefuture.TheMexicanGovernmenthasthepower,iftheMexicanConstitutionandfederallawwerefurtheramended,tofurtherreorganizeourcorporatestructure,includingatransferofalloraportionofourassetstoanentitynotcontrolled,directlyorindirectly,bytheMexicanGovernment.ThereorganizationandtransferofassetscontemplatedbytheEnergyReformDecreeandtheSecondaryLegislation,oranyotherreorganizationortransferthattheMexicanGovernmentmayeffect,couldadverselyaffectourproduction,disruptourworkforceandoperationsandcauseustodefaultoncertainobligations.SeeRiskFactorsRelatedtoMexicoaboveinthisItem3.
WemakesignificantpaymentstotheMexicanGovernment,whichmaylimitourcapacitytoexpandourinvestmentprogram.
WearerequiredtomakesignificantpaymentstotheMexicanGovernment,includingintheformoftaxesandduties,whichmaylimitourabilitytomakecapitalinvestments.In2014,approximately47.0%ofoursalesrevenueswasusedforpaymentstotheMexicanGovernmentintheformoftaxesandduties,whichconstitutedasubstantialportionoftheMexicanGovernmentsrevenues.
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TheSecondaryLegislationincludeschangestothefiscalregimeapplicabletous,particularlywithrespecttotheexplorationandproductionactivitiesthatwecarryoutinMexico.Beginningin2016,wewillbeginpayingastatedividendinlieuofcertainofthepaymentsthatwecurrentlymayberequiredtopayatthediscretionoftheMexicanGovernment.ThisstatedividendwillbecalculatedbytheSHCPasapercentageoftherevenues,aftertaxes,thatwegeneratethroughactivitiessubjecttotheLeydeIngresossobreHidrocarburos(HydrocarbonsRevenueLaw)onanannualbasisandapprovedbytheMexicanCongressinaccordancewiththetermsofthePetrleosMexicanosLaw.SeeItem8FinancialInformationDividendsformoreinformation.TheSecondaryLegislationalsocontemplatesanewframeworkfortaxationunderwhichtheMexicanGovernmentistocollectrevenuesfromothercompaniesparticipatingintheMexicanenergysector.AlthoughthisnewframeworkisdesignedinparttoreducetheMexicanGovernmentsrelianceonpaymentsmadebyus,wecannotprovideassurancesthatwewillnotberequiredtocontinuetopayalargeproportionofoursalesrevenuetotheMexicanGovernment.SeeItem4Taxes,DutiesandOtherPaymentstotheMexicanGovernmentNewFiscalRegime.Asofthedateofthisreport,weareassessingtheimpactthatthesechangesmayhaveonus.SeeRiskFactorsRelatedtoMexicoTheeffectsoftheimplementationofthenewlegalframeworkapplicabletotheenergysectorinMexicoareuncertainbutlikelytobematerial,andmayhaveanegativeimpactonusintheshortandmediumtermaboveinthisItem3.
TheMexicanGovernmenthasimposedpricecontrolsinthedomesticmarketonourproducts.
TheMexicanGovernmenthasfromtimetotimeimposedpricecontrolsonthesalesofnaturalgas,liquefiedpetroleumgas(whichwerefertoasLPG),gasoline,diesel,gasoilintendedfordomesticuse,fueloilandotherproducts.Whenthesepricecontrolshavebeenimplementedinthepast,wehavenotbeenabletopassonalloftheincreasesinthepricesofourproductpurchasestoourcustomersinthedomesticmarket.WedonotcontroltheMexicanGovernmentsdomesticpoliciesandtheMexicanGovernmentcouldimposeadditionalpricecontrolsonthedomesticmarketinthefuture.Theimpositionofsuchpricecontrolswouldadverselyaffectourresultsofoperations.Formoreinformation,seeItem4InformationontheCompanyBusinessOverviewRefiningPricingDecreesandItem4InformationontheCompanyBusinessOverviewGasandBasicPetrochemicalsPricingDecrees.
TheMexicannation,notus,ownsthehydrocarbonreservesinMexicolocatedinthesubsoilofMexicoandourrighttocontinuetoextractthesereservesissubjecttotheapprovaloftheMinistryofEnergy.
TheMexicanConstitutionprovidesthattheMexicannation,notus,ownsallpetroleumandotherhydrocarbonreserveslocatedinthesubsoilofMexico.
FollowingtheadoptionoftheEnergyReformDecree,Article27oftheMexicanConstitutionprovidesthattheMexicanGovernmentwillcarryoutexplorationandextractionactivitiesthroughassignmentstoandagreementswithus,aswellasthroughagreementswithothercompanies.PursuanttotheSecondaryLegislation,therightsofoilandgascompanies,includingus,toexploreandextractthepetroleumandotherhydrocarbonreserveslocatedinthesubsoilofMexicoissubjecttotheassignmentofrightsbytheMinistryofEnergyandentryintoagreementspursuanttoacompetitivebiddingprocess.
Accesstocrudeoilandnaturalgasreservesisessentialtoanoilandgascompanyssustainedproductionandgenerationofincome,andourabilitytogenerateincomewouldbemateriallyandadverselyaffectediftheMexicanGovernmentweretorestrictorpreventusfromexploringorextractinganyofthecrudeoilandnaturalgasreservesthatithasassignedtousorifweareunabletocompeteeffectivelywithotheroilandgascompaniesinfuturebiddingroundsforadditionalexplorationandextractionrightsinMexico.Formoreinformation,seeWemustmakesignificantcapitalexpenditurestomaintainourcurrentproductionlevels,andtomaintain,aswellasincrease,ourprovedhydrocarbonreserves.Reductionsinourincome,adjustmentstoourcapitalexpendituresbudgetandinabilitytoobtainfinancingmaylimitourabilitytomakecapitalinvestmentsbelowinthisItem3.
Informationonhydrocarbonreservesinthisreportisbasedonestimates,whichareuncertainandsubjecttorevisions.
Theinformationonoil,gasandotherreservessetforthinthisreportisbasedonestimates.Reservesvaluationisasubjectiveprocessofestimatingundergroundaccumulationsofcrudeoilandnaturalgasthatcannotbemeasuredinanexactmannertheaccuracyofanyreservesestimatedependsonthequalityandreliabilityofavailabledata,engineeringandgeologicalinterpretationandsubjectivejudgment.Additionally,estimatesmayberevisedbasedonsubsequentresultsofdrilling,testingandproduction.Theseestimatesarealsosubjecttocertainadjustmentsbasedonchangesinvariables,includingcrudeoilprices.Therefore,provedreservesestimatesmaydiffermateriallyfromtheultimatelyrecoverablequantitiesofcrudeoilandnaturalgas.SeeRiskFactorsRelatedtoOurOperationsCrudeoilandnaturalgaspricesarevolatileandlowcrudeoilandnaturalgaspricesadverselyaffectourincomeandcashflowsandtheamountofhydrocarbonreservesthatwehavetherighttoextractandsellaboveinthisItem3.PemexExplorationandProductionrevisesannuallyitsestimatesofhydrocarbonreservesthatitisentitledtoextractandsell,whichmayresultinmaterialrevisionstotheseestimates.Ourabilitytomaintainourlongtermgrowthobjectivesforoilproductiondependsonourabilitytosuccessfullydevelopourreserves,andfailuretodosocouldpreventusfromachievingourlongtermgoalsforgrowthinproduction.
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Wemustmakesignificantcapitalexpenditurestomaintainourcurrentproductionlevels,andtomaintain,aswellasincrease,ourprovedhydrocarbonreserves.Reductionsinourincome,adjustmentstoourcapitalexpendituresbudgetandinabilitytoobtainfinancingmaylimitourabilitytomakecapitalinvestments.
Becauseourabilitytomaintain,aswellasincrease,ouroilproductionlevelsishighlydependentuponourabilitytosuccessfullydevelopexistinghydrocarbonreservesand,inthelongterm,uponourabilitytoobtaintherighttodevelopadditionalreserves,wecontinuallyinvestcapitaltoenhanceourhydrocarbonrecoveryratioandimprovethereliabilityandproductivityofourinfrastructure.
Despitetheseinvestments,thereplacementrateforprovedhydrocarbonreservesdecreasedto18.0%in2014,representingadeclineinprovedhydrocarbonreserves.SeeItem4InformationontheCompanyBusinessOverviewExplorationandProductionReservesformoreinformationaboutthefactorsleadingtothisdecline,includingtheresultsofRoundZero.PemexExplorationandProductionscrudeoilproductiondecreasedby0.2%from2011to2012,by1.0%from2012to2013andby3.7%from2013to2014,primarilyasaresultofthedeclineofproductionintheCantarell,ATG,DeltadelGrijalva,CrudoLigeroMarinoandIxtalManikprojects.
UponthecompletionofRoundZeroinAugust2014,theMinistryofEnergygrantedustherighttocontinuetoexploreanddevelopareasthattogethercontain95.9%oftheestimatedprovedreservesthatwerequested.Thedevelopmentofthereservesthatwereassignedtous,particularlythereservesinthedeepwatersoftheGulfofMexicoandinshaleoilandgasfieldsintheBurgosbasin,willdemandsignificantcapitalinvestmentsandwillposesignificantoperationalchallenges.OurrighttodevelopthereservesassignedtousthroughRoundZeroisconditionedonourabilitytodevelopsuchreservesinaccordancewithourdevelopmentplans,whichwerebasedonourtechnical,financialandoperationalcapabilitiesatthetime.SeeItem4HistoryandDevelopmentEnergyReformAssignmentofExplorationandProductionRights.Wecannotprovideassurancesthatwewillhaveorwillbeabletoobtain,inthetimeframethatweexpect,sufficientresourcesorthetechnicalcapacitynecessarytoexploreandextractthereservesthattheMexicanGovernmentassignedtousaspartofRoundZero,orthatitmaygranttousinthefuture.Wemayalsolosetherighttocontinuetoextractthesereservesifwefailtodeveloptheminaccordancewithourdevelopmentplans,whichcouldadverselyaffectouroperatingresultsandfinancialcondition.Inaddition,increasedcompetitionintheoilandgassectorinMexicomayincreasethecostsofobtainingadditionalacreageinbiddingroundsfortherightstonewreserves.
OurabilitytomakecapitalexpendituresislimitedbythesubstantialpaymentsthatwemaketotheMexicanGovernment,theabilityoftheMexicanGovernmenttoadjustourannualbudgetandcyclicaldecreasesinourrevenuesprimarilyrelatedtoloweroilprices.Theavailabilityoffinancingmaylimitourabilitytomakecapitalinvestmentsthatarenecessarytomaintaincurrentproductionlevelsandincreaseourprovedhydrocarbonreserves.Formoreinformation,seeItem4InformationontheCompanyHistoryandDevelopmentCapitalExpendituresandInvestmentsandEnergyReform.
IncreasedcompetitionintheMexicanenergysectormayhaveanegativeimpactonourresultsofoperationsandfinancialconditions.
PursuanttotheHydrocarbonsLawthatwasadoptedaspartoftheSecondaryLegislation,theMexicanGovernmentwillcarryoutexplorationandextractionactivitiesthroughassignmentsto,oragreementswith,usandthroughagreementswithotheroilandgascompanies.TheoilandgasfieldsthatwedidnotrequestorwerenotassignedtouspursuanttoRoundZero(includingtheareasassignedtousonatemporarybasis)aresubjecttocompetitivebiddingprocessesopentoparticipationbyotheroilandgascompanies.Wewillnothaveapreferentialrightinanysuchbiddingprocessandthereforemustcompeteonequaltermswithotheroilandgascompaniesfortheexplorationandproductionblockssubjecttobidding.Wewillalsolikelyfacecompetitioninconnectionwithcertainrefining,transportationandprocessingactivities.Inaddition,increasedcompetitioncouldmakeitmoredifficultforustohireandretainskilledpersonnel.Formoreinformation,seeItem4InformationontheCompanyHistoryandDevelopmentEnergyReform.IfweareunabletocompetesuccessfullywithotheroilandgascompaniesintheenergysectorinMexico,ourresultsofoperationsandfinancialconditionmaybeadverselyaffected.
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WemayclaimsomeimmunitiesundertheForeignSovereignImmunitiesActandMexicanlaw,andyourabilitytosueorrecovermaybelimited.
WearepublicsectorentitiesoftheMexicanGovernment.Accordingly,youmaynotbeabletoobtainajudgmentinaU.S.courtagainstusunlesstheU.S.courtdeterminesthatwearenotentitledtosovereignimmunitywithrespecttothataction.Undercertaincircumstances,MexicanlawmaylimityourabilitytoenforcejudgmentsagainstusinthecourtsofMexico.WealsodonotknowwhetherMexicancourtswouldenforcejudgmentsofU.S.courtsbasedonthecivilliabilityprovisionsoftheU.S.federalsecuritieslaws.Therefore,evenifyouwereabletoobtainaU.S.judgmentagainstus,youmightnotbeabletoobtainajudgmentinMexicothatisbasedonthatU.S.judgment.Moreover,youmaynotbeabletoenforceajudgmentagainstourpropertyintheUnitedStatesexceptunderthelimitedcircumstancesspecifiedintheForeignSovereignImmunitiesActof1976,asamended.Finally,ifyouweretobringanactioninMexicoseekingtoenforceourobligationsunderanysecuritiesissuedbyPetrleosMexicanos,satisfactionofthoseobligationsmaybemadeinpesos,pursuanttothelawsofMexico.
Ourdirectorsandofficers,aswellassomeoftheexpertsnamedinthisreport,resideoutsidetheUnitedStates.Substantiallyallofourassetsandthoseofmostofourdirectors,officersandexpertsarelocatedoutsidetheUnitedStates.Asaresult,investorsmaynotbeabletoeffectserviceofprocessonourdirectorsorofficersorthoseexpertswithintheUnitedStates.
Item4. InformationontheCompany
HISTORYANDDEVELOPMENT
WearethelargestcompanyinMexicoaccordingtotheJune2014specialeditionofExpansinmagazine,andaccordingtotheNovember24,2014issueofPetroleumIntelligenceWeekly,weweretheeighthlargestcrudeoilproducerandthethirteenthlargestoilandgascompanyintheworldbasedondatafromtheyear2013.
OurexecutiveofficesarelocatedatAvenidaMarinaNacionalNo.329,ColoniaPetrleosMexicanos,Mxico,D.F.11311,Mxico.Ourtelephonenumberis(5255)19442500.
InMarch1938,PresidentLzaroCrdenasdelRonationalizedtheforeignownedoilcompaniesthatwerethenoperatinginMexico,andtheMexicanCongressestablishedPetrleosMexicanosthroughtheDecretoquecrealaInstitucinPetrleosMexicanos(DecreethatcreatestheentityPetrleosMexicanos),whichwaspublishedintheOfficialGazetteoftheFederationandtookeffectonJuly20,1938.
InJuly1992,theLeyOrgnicadePetrleosMexicanosyOrganismosSubsidiarios(OrganicLawofPetrleosMexicanosandSubsidiaryEntities)tookeffectand,amongotherthings,createdPemexExplorationandProduction,PemexRefining,PemexGasandBasicPetrochemicalsandPemexPetrochemicalsasdecentralizedpublicentitiesoftheMexicanGovernmentwiththelegalauthoritytoownpropertyandconductbusinessintheirownnames.EachofthesubsidiaryentitieshasthecharacteristicsofasubsidiaryofPetrleosMexicanosandtogether,theycarryouttheoperationsthathadpreviouslybeenmanageddirectlybyPetrleosMexicanos.EffectiveMarch22,2012,followingitspublicationintheOfficialGazetteoftheFederation,theDecretoquetieneporobjetoestablecerlaestructura,elfuncionamientoyelcontroldelosorganismossubsidiariosdePetrleosMexicanos(Decreetoestablishthestructure,operationandcontrolofthesubsidiaryentitiesofPetrleosMexicanos)setsforththestructureandscopeoftheactivitiesofthesesubsidiaryentities,unlessotherwisestatedinthePetrleosMexicanosLaw.Theprincipallinesofbusinessoftheexistingsubsidiaryentitiesareasfollows:
PemexExplorationandProductionexploresforandexploitscrudeoilandnaturalgasandtransports,storesandmarketsthesehydrocarbons
PemexRefiningrefinespetroleumproductsandderivativesthatmaybeusedasbasicindustrialrawmaterialsandstores,transports,distributesandmarketstheseproductsandderivatives
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PemexGasandBasicPetrochemicalsprocessesnaturalgas,naturalgasliquids,artificialgasandderivativesthatmaybeusedasbasicindustrialrawmaterialsandstores,transports,distributesandmarketstheseproductsandderivativesandproduces,stores,transports,distributesandmarketspetrochemicalsthatwereclassifiedasbasic(ethane,propane,butane,pentanes,hexane,heptane,carbonblackfeedstocks,naturalgasolineandmethane,whenusedasrawmaterialsandintendedforuseinpetrochemicalindustrialprocesses)priortotheenactmentoftheHydrocarbonsLawinAugust2014and
PemexPetrochemicalsengagesinindustrialpetrochemicalprocessesandstores,distributesandmarketsotherpetrochemicals.
Asofthedateofthisreport,theactivitiesofPetrleosMexicanosanditssubsidiaryentitiesareregulatedprimarilyby:
thePetrleosMexicanosLaw,whichtookeffect,withtheexceptionofcertainprovisions,onOctober7,2014thedayonwhich
PetrleosMexicanoswastransformedintoaproductivestateownedcompanyandrepealsthePetrleosMexicanosLawthatbecameeffectiveasofNovember29,2008,whichwerefertoasthe2008PetrleosMexicanosLawand
theHydrocarbonsLaw,whichtookeffectonAugust12,2014andrepealstheLeyReglamentariadelArtculo27Constitucionalenel
RamodelPetrleo(RegulatoryLawtoArticle27oftheMexicanConstitutionConcerningPetroleumAffairs,whichwerefertoastheRegulatoryLaw).
EnergyReform
EnergyReformDecree
OnDecember20,2013,amendmentstoArticles25,27and28oftheMexicanConstitutionweresignedintolawbyPresidentEnriquePeaNietoandpublishedintheOfficialGazetteoftheFederationastheEnergyReformDecree.TheEnergyReformDecree,whichincludestransitionalarticlessettingforththegeneralframeworkandtimelinefortheSecondaryLegislation,tookeffectonDecember21,2013.
ThekeyfeaturesoftheEnergyReformDecreeare:
OwnershipbyMexicanNation:Solid,liquidandgaseoushydrocarbonslocatedinthesubsoilofMexicoremainthepropertyoftheMexicannation.
InitialAssignmentsthroughRoundZero:TheMinistryofEnergy,withtechnicalassistancefromtheComisinNacionaldeHidrocarburos(NationalHydrocarbonsCommission,orNHC)determinedourinitialallocationofrightstocontinuetocarryoutexplorationandproductionactivitiesinMexicobasedonourtechnical,financialandoperationalcapabilitiestoexploreforandextracthydrocarbonsinanefficientandcompetitivemanner.OnMarch21,2014,wesubmittedtotheMinistryofEnergyarequestthatweretainrightsthatwebelievedwouldallowustomaintainourproductionandprovidesufficientexplorationopportunitiestoincreaseourproductioninthefuture.OnAugust13,2014,theMinistryofEnergypublishedtheresultsofRoundZero,throughwhichwewereassignedrightsto95.9%oftheprovedreservesthatwerequested.TheMinistryofEnergymayassign,onanexceptionalbasis,additionalexplorationandproductionareastousorotherproductivestateownedcompaniescreatedinthefutureinaccordancewiththetermssetforthintheHydrocarbonsLaw.SeeAssignmentofExplorationandProductionRightsbelowinthisItem4.
BookingofReserves:ProductivestateownedcompaniesandothercompaniesparticipatingintheMexicanhydrocarbonsindustrywillbe
allowedtoreportassignmentsorcontractsandthecorrespondingexpectedbenefitsforaccountingandfinancialpurposes,withtheunderstandingthatanysolid,liquidorgaseoushydrocarbonsthatareinthesubsoilwillremainthepropertyoftheMexicannation.
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SecondaryLegislation
OnAugust6,2014,theMexicanCongresscompletedtheprocessofapprovingtheSecondaryLegislation,whichwassignedintolawbyPresidentEnriquePeaNietoandpublishedintheOfficialGazetteoftheFederationonAugust11,2014.TheSecondaryLegislationincludesninenewlaws,ofwhichthefollowingaremostrelevanttoouroperations:
PetrleosMexicanosLaw
HydrocarbonsLaw
HydrocarbonsRevenueLaw
LeydelosrganosReguladoresCoordinadosenMateriaEnergtica(CoordinatedEnergyRegulatoryBodiesLaw)
LeydelaAgenciaNacionaldeSeguridadIndustrialydeProteccinalMedioAmbientedelSectorHidrocarburos(NationalAgencyofIndustrialSafetyandEnvironmentalProtectionfortheHydrocarbonsSectorLaw)and
LeydelFondoMexicanodelPetrleoparalaEstabilizacinyelDesarrollo(MexicanPetroleumFundforStabilizationandDevelopmentLaw).
TheSecondaryLegislationalsoincludesamendmentstoseverallaws,includingthefollowing:
LeyFederaldelasEntidadesParaestatales(FederalLawofPublicSectorEntities)
LeyFederaldePresupuestoyResponsabilidadHacendaria(FederalLawofBudgetandFiscalAccountability)
LeyGeneraldeDeudaPblica(GeneralLawofPublicDebt)
LeyFederaldeDerechos(FederalDutiesLaw)
LeyOrgnicadelaAdministracinPblicaFederal(FederalPublicAdministrationOrganicLaw)
LeydeObrasPblicasyServiciosRelacionadosconlasMismas(LawofPublicWorksandRelatedServices)and
LeydeAdquisiciones,ArrendamientosyServiciosdelSectorPblico(LawofAcquisitions,LeasesandServicesofthePublicSector).
OnOctober31,2014,theregulationsrelatingtotheSecondaryLegislation,includingtheReglamentodelaLeydePetrleosMexicanos(RegulationstothePetrleosMexicanosLaw),werepublishedintheOfficialGazetteoftheFederation.SubsequentmodificationstotheRegulationstothePetrleosMexicanosLawtookeffectonFebruary9,2015.
WedescribebelowthekeyfeaturesoftheSecondaryLegislationthatrelatetothehydrocarbonssectorinMexicoandourcorporatestructureandoperations.
Transformation:PetrleosMexicanoswastransformedintoaproductivestateownedcompanyonOctober7,2014thedayonwhichthePetrleosMexicanosLawtookeffect,withtheexceptionofcertainprovisions.Asaproductivestateownedcompany,PetrleosMexicanosremainswhollyownedbytheMexicanGovernmentandhasthecorporatepurposeofgeneratingeconomicvalueandincreasingtheincomeoftheMexicannationwhileadheringtoprinciplesofequity,aswellasasocialandenvironmentalresponsibility.
SpecialRegime:OnDecember2,2014,uponitsdeterminationthatthenewBoardofDirectorsofPetrleosMexicanoswasperformingitsdutiesandthemechanismsforouroversight,transparencyandaccountabilityhadbeenimplemented,theMinistryofEnergyformallyannouncedintheOfficialGazetteoftheFederationthatthespecialregimeprovidedforinthePetrleosMexicanosLaw,whichgovernsPetrleosMexicanosactivitiesrelatingtoproductivestateownedsubsidiaries,affiliates,compensation,assets,administrativeliabilities,budget,debtlevelsandthestatedividend,hadtakeneffect.Asofthedateofthisreport,theprovisionsrelatingtoacquisitions,leases,servicesandpublicworkshavenotyetbecomeeffective.
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CorporateReorganization:InaccordancewiththetransitionalarticlesofthePetrleosMexicanosLaw,onNovember18,2014,theBoardofDirectorsofPetrleosMexicanosapprovedtheDirectorGeneralsproposalforourcorporatereorganization.
Pursuanttothisreorganizationplan,thefourexistingsubsidiaryentitiesofPetrleosMexicanosaretobetransformedintotwonewproductivestateownedsubsidiaries.Thefirstoftheseproductivestateownedsubsidiaries,PemexExplorationandProduction,willsubsumetheexistingsubsidiaryentity,PemexExplorationandProduction.Thesecondoftheseproductivestateownedsubsidiaries,PemexIndustrialTransformation,willcomprisethefollowingexistingsubsidiaryentities:PemexRefining,PemexGasandBasicPetrochemicalsandPemexPetrochemicals.
Aspartofthisreorganizationplan,theBoardofDirectorsofPetrleosMexicanosalsoapprovedthecreationofthefivenewsubsidiaryentitiesdescribedbelow,eachofwhichmaybecomeanaffiliateofPetrleosMexicanosifcertainconditionssetforthinthePetrleosMexicanosLawaremet.
PemexDrillingandServices:ThisentityisexpectedtosubsumecertainassetsoftheexistingPemexExplorationandProductionandwillperformdrillingservices.
PemexLogistics:Thisentitywillprovideland,maritimeandpipelinetransportationtousandothercompanies.
PemexCogenerationandServices:Thisentitywillaimtomaximizeenergyuseinouroperationsbyutilizingtheheatandsteamgeneratedinourindustrialprocesses.
PemexFertilizers:ThisentityisexpectedtosubsumecertainassetsofPemexPetrochemicalsandwillintegratetheammoniaproductionchainuptothepointofsaleoffertilizers.
PemexEthylene:ThisentitywillseparatetheethylenebusinessfromPemexPetrochemicalsinordertotakeadvantageoftheintegrationoftheethyleneproductionchain.
OnMarch27,2015,theBoardofDirectorsofPetrleosMexicanosadoptedcreationresolutionsforeachofthenewsubsidiaryentities,whichwillreplacetheexistingsubsidiaryentitiesandassumealloftheirrightsandobligations.ThecreationresolutionsweresubsequentlypublishedintheOfficialGazetteoftheFederationonApril28,2015,andtheyaretotakeeffectwithin180daysofpublicationinaccordancewiththetransitionalarticlesincludedinthecreationresolutions.Asofthedateofthisreport,noneofthenewsubsidiaryentitieshasyetbeenformed.Oncecreated,thesevennewsubsidiaryentitieswillassumetherightsandobligationsoftheexistingsubsidiaryentities.
ThirdPartyParticipationandContractualRegime:Together,theHydrocarbonsLawandtheHydrocarbonsRevenueLawestablishanewlegalframeworkfortheexplorationandextractionofhydrocarbonsthroughassignmentsandcontracts,aswellasthenewfiscalregimethroughwhichtheMexicanGovernmentwillcollectrevenuesfromparticipantsintheMexicanhydrocarbonsindustry.TheHydrocarbonsLawempowerstheMinistryofEnergytodeterminetheappropriatecontractmodelforeachareathatissubjecttoacompetitivebiddingprocess,whiletheSHCPisresponsiblefordeterminingtheeconomicandfiscaltermsofeachcontract.ThefollowingarrangementscomprisethenewcontractualregimeestablishedbytheSecondaryLegislationforupstreamactivities:
licenses,pursuanttowhichalicenseholderisentitledtothehydrocarbonsthatareextractedfromthesubsoil
productionsharingcontracts,pursuanttowhichacontractorisentitledtoreceiveapercentageofproduction
profitsharingcontracts,pursuanttowhichacontractorisentitledtoreceiveapercentageoftheprofitfromthesaleoftheextractedhydrocarbonsand
servicecontracts,pursuanttowhichacontractorwouldreceivecashpaymentsforservicesperformed(servicecontracts,together
withlicenses,productionsharingcontractsandprofitsharingcontractsareknownasthecontractsfortheexplorationandextractionofhydrocarbons,collectivelyreferredtoascontractsforexplorationandextraction).
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ThefiscaltermsofeachcontractforexplorationandextractionaretobeestablishedinaccordancewiththeHydrocarbonsRevenueLaw.SeeTaxes,DutiesandOtherPaymentstotheMexicanGovernmentNewFiscalRegimebelowinthisItem4.
Formidstreamanddownstreamactivities,includingoilrefiningandnaturalgasprocessing,theHydrocarbonsLawestablishesapermitregimethatisregulatedbytheMinistryofEnergyandtheComisinReguladoradeEnerga(EnergyRegulatoryCommission).TheHydrocarbonsLawalsosetsforththeprocessbywhichentitiesmayapplyforthesepermits.InaccordancewiththetransitionalarticlesoftheHydrocarbonsLaw,theEnergyRegulatoryCommissionwillbeginissuingpermitsfortheretailsaleofgasolineanddieselfuelin2016.UntilDecember31,2017,theMexicanGovernmentmaycontinueissuingpricingdecreestoregulatethemaximumpricesfortheretailsaleofgasolineanddieselfuel,takingintoaccounttransportationcostsbetweenregions,inflationandthevolatilityofinternationalfuelprices,amongotherfactors.SeeBusinessOverviewRefiningPricingDecreesbelowinthisItem4.Beginningin2018,thepricesofgasolineanddieselfuelwillbefreelydeterminedbymarketconditions.
PipelineSystem:EffectiveAugust29,2014,CENAGAS,adecentralizedpublicentityoftheMexicanGovernment,wascreatedtoactastheindependentadministratoroftheSistemadeTransporteyAlmacenamientoNacionalIntegradodeGasNatural(NationalSystemfortheIntegratedTransportationandStorageofNaturalGas,whichwerefertoastotheIntegratedNaturalGasSystem),aninterconnectedsystemcomprisingthenationalgaspipelinesystemandstoragefacilities,aswellasthecompression,liquefaction,decompression,regasificationandotherrelatedinfrastructureownedbyCENAGASorothercompaniesparticipatinginthesystem.PursuanttotheHydrocarbonsLaw,PemexGasandBasicPetrochemicalsisrequiredtotransfertoCENAGAStheassetsandcontractsnecessaryforCENAGAStomanagetheIntegratedNaturalGasSystem.TheaggregateamountofassetsandcontractstobetransferredtoCENAGASwerevaluedatapproximatelyPs.34.0billionasofDecember31,2014.Asofthedateofthisreport,notransfershaveyetbeenmade.
RegulatoryOversightandAuthority:TheFederalPublicAdministrationOrganicLaw,whichwasamendedinconnectionwiththeSecondaryLegislation,nowgrantstheMinistryofEnergyadditionalauthorityinconnectionwithoilandgasactivitiesconductedinMexico.Inaddition,theCoordinatedEnergyRegulatoryBodiesLaw,whichwasenactedaspartoftheSecondaryLegislation,establishesthetechnicalandadministrativeauthorityoftheNHCandtheEnergyRegulatoryCommissionovercertainofouroperationsandtheenergysectorgenerally.Theauthorityofthesebodiesisdescribedfurtherbelow.
TheMinistryofEnergy,withthetechnicalassistanceoftheNHC,hastheauthoritytograntassignmentstousorotherproductivestateownedcompaniescreatedinthefuture,selecttheoilandgasareasthatwillbesubjecttopublicbidding,establishthetechnicalguidelinesforbiddingprocesses,aswellasforthecontractsthemselves,andissuepermitsforoilrefining,naturalgasprocessingandtheimportandexportofcrudeoil,naturalgasandpetroleumproducts.
TheNHCisresponsibleforconductingthepublicbiddingprocessandexecutingthecorrespondingcontracts,aswellas
supervisingoilandgasproductionactivities.Inaddition,theSHCPisentrustedwithestablishingtheeconomictermsforcontractsassignedpursuanttothepublicbiddingprocess.
TheEnergyRegulatoryCommissionmaygrantandregulatepermitsforthestorage,transportationanddistributionthrough
pipelinesofoil,gas,petroleumproductsandpetrochemicals,regulatethirdpartyaccesstotransportationpipelines,aswellastothestorageofhydrocarbonsandtheirderivativesandregulatethefirsthandsaleoftheaforementionedproducts.
TheNHCandtheEnergyRegulatoryCommissionhavebeenvestedwiththeirownlegalstatusandtechnicalandadministrativeautonomy.
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SafetyandtheEnvironment:TheAgenciaNacionaldeSeguridadIndustrialydeProteccinalMedioAmbientedelSectorHidrocarburos(NationalAgencyofIndustrialSafetyandEnvironmentalProtectionfortheHydrocarbonsSector)wascreatedtoregulateandsuperviseactivitiesandfacilitiesinthehydrocarbonsindustryrelatedtoindustrialsafetyandenvironmentalprotection.ThisagencyoperatesasanadministrativebodyoftheSecretaradeMedioAmbienteyRecursosNaturales(MinistryoftheEnvironmentandNaturalResourcesorSEMARNAT)withtechnicalandadministrativeautonomyand,amongotherthings,supervisesthedecommissioningandabandonmentoffacilities.Relatedly,allcompaniesparticipatinginthehydrocarbonssectorwillbesubjecttoregulationsissuedbythisagency,includingsafetystandardsandlimitsongreenhousegasemissions.ThisagencybeganitsactivitiesonMarch2,2015.
MexicanOilFund:PursuanttotheMexicanPetroleumFundforStabilizationandDevelopmentLaw,theFondoMexicanodelPetrleoparalaEstabilizacinyelDesarrollo(MexicanPetroleumFundforStabilizationandDevelopment)wascreatedasafederalpublictrustandbeganoperatingonJanuary1,2015.Thefundisentrustedwithreceiving,administeringanddistributingtheincomethattheMexicanGovernmentderivesfromexplorationandextractionactivitiescarriedoutunderassignmentsoragreements,excludinganytaxrevenuesgeneratedasaresultoftheseactivities.Thispublictrustwillfirstusetheincometomakethepaymentsrequiredpursuanttothevariousassignmentsoragreementsitwillthentransferpartoftheincometovariousfundsthatfinancepublicexpensesandwillallocatetheremainingfundstolongtermsavings,includinginvestmentsinfinancialassets.TheBancodeMxico(theMexicancentralbank)isthetrusteeofthefund,andtheallocationofthefundsassetsissupervisedbyatechnicalcommitteecomposedoftheSecretaryofEnergy,theSecretaryofFinanceandPublicCredit,theGovernorofBancodeMxicoandfourindependentmembers.
Anticorruption:TheSecondaryLegislation,includingtheHydrocarbonsLaw,includesprovisionsaimedatpreventingandsanctioning
corruptionthroughthesupervisionand,ifnecessary,investigationandprosecutionofentities,individualsandpublicofficialsparticipatingintheMexicanenergysector.
PensionLiabilities:AsofDecember31,2014,ourunfundedreserveforretirementpensionsandsenioritypremiumswasequaltoapproximatelyU.S.$100.2billion.TheSecondaryLegislationenablestheMexicanGovernmenttoassumeaportionofthisunfundedreserveasofAugust12,2014(asrecordedinourfinancialstatementsbasedonactuarialcomputationsusingtherelevantinformationasofthatdate)ifcertainconditions,includingthosesetforthbelow,aremetbyAugust12,2015:
offeringournewemployeesindividualizeddefinedcontributionplansthroughtheSistemadeAhorroparaelRetiro(RetirementSavingSystem)inMexico
graduallyadjustingtheparametersofourretirementplans,includinganincreaseintheretirementageand
theauditofourpensionliabilitiesbytheAuditoraSuperiordelaFederacin(SuperiorAuditOfficeoftheFederation).
Inordertomeettheseconditions,wemustrenegotiatethecollectivebargainingagreementbetweenPetrleosMexicanosandtheSindicatodeTrabajadoresPetrolerosdelaRepblicaMexicana(PetroleumWorkersUnion),modifytheReglamentodeTrabajodelPersonaldeConfianzadePetrleosMexicanosyOrganismosSubsidiarios(EmploymentRegulationforWhiteCollarEmployeesofPetrleosMexicanosandSubsidiaryEntities)andimplementanausterityprogram.Theactualamountofourpensionliabilitiesthatthisportionwillrepresenthasnotyetbeendeterminedasofthedateofthisreport.
AssignmentofExplorationandProductionRights
TheMinistryofEnergy,withtechnicalassistancefromtheNHC,evaluatedourrequesttobeassignedoilandgasexplorationandextractionrightsincertainareasbasedonourtechnical,financialandoperationalcapabilities,inaccordancewiththeEnergyReformDecree.OnAugust13,2014,theMinistryofEnergypublishedtheresultsofRoundZeropursuanttowhichwewereassignedrightsto95.9%oftheprovedreservesthatwerequested.PursuanttotheHydrocarbonsLaw,theMinistryofEnergymayassign,onanexceptionalbasis,additionalexplorationandproductionareastousorotherproductivestateownedcompaniescreatedinthefuture.
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InconnectionwiththeRoundZeroassignments,theMinistryofEnergyauthorizedourexplorationplansfortheareasinwhichwehadmadecommercialinvestmentsordiscoveries,aswellasourdevelopmentplansfortheextractionofhydrocarbonsinproducingfields.OurrightstocontinueconductingexplorationandextractionactivitiesintheareasassignedtousaresubjecttocertaintermsandconditionssetforthintheassignmentdeedsgrantedbytheMexicanGovernment.Theassignmentdeedsgoverningourexplorationareasrequire,amongotherthings,thatwecarryoutexplorationactivitiesinaccordancewiththeauthorizedplanforanexplorationareawithinthefirstthreeyearsofreceivingtheassignmentthisinitialperiodmaybeextendedfortwoadditionalyears,dependingonthetechnicalcharacteristicsofthearea,ourcompliancewiththeauthorizedexplorationplanandourresults.Ifacommercialdiscoveryismadeduringthisinitialexplorationphase,theassignmentdeedsprovidethatwemaysubmittotheNHCadevelopmentplanfortheextractionofhydrocarbonsfromthearea.UponNHCapproval,wemaythencarryoutextractionactivitiesinaccordancewithourdevelopmentplan.Theassignmentdeedsgoverningthemajorityofourproductionareasgrantustherighttocarryoutextractionactivitiesfora20yearperiod,subjecttotherequirementthatwecomplywiththeauthorizeddevelopmentplanforaproductionareawithinthetimeperiodspecifiedbytheNHC.Ourremainingproductionareas,whichtogethercontainapproximately398millionbarrelsofoilequivalentofprovedreserves,weretemporarilyassignedtousforatwoyearperiodinordertoensurethecontinuityofoperationsattheseproducingfieldsuntiltheyaresubjecttoacompetitivebiddinground.TheassignmentdeedsgoverningbothourexplorationandproductionareasincludemechanismsbywhichtheMinistryofEnergymayrevokeitsassignmentstousandretaketheunderlyingareas.
TheHydrocarbonsLawprovidesthatonceaparticularareaisassignedtous,wemayrequestpermissionfromtheMinistryofEnergytomigratetheassignmentintothenewcontractualregime.TheSHCPisresponsibleforestablishingthefiscaltermsofthecontractforexplorationandextractiontobemigrated.If,inconnectionwiththemigrationofanassignment,wedecidetoenterintoastrategicjointventurewithanothercompany,commonlyreferredtoasafarmout,fortheexplorationanddevelopmentoftheunderlyingarea,theNHCwillconductapublictenderinordertoselectourpartner.PursuanttotheHydrocarbonsLaw,theMinistryofEnergywillseekafavorableopinionfromuswithrespecttotheexperienceandthetechnical,financialandoperationalqualificationsthatabiddermustmeetinordertoparticipateinthebiddingprocess.
Inaddition,PemexExplorationandProductionmayamenditsIntegratedExplorationandProductionContracts(whichwerefertoasIntegratedE&PContracts)andFinancedPublicWorksContracts(whichwerefertoasFPWCs)inordertoalignthesecontracts,whichwereenteredintopriortotheenactmentoftheSecondaryLegislation,withthenewcontractualframeworkestablishedundertheHydrocarbonsLaw.Accordingly,anexistingIntegratedE&PContractorFPWCmaybemigratedintoacontractforexplorationandextractionuponagreementbythecontractpartiestothetechnicaltermsdeterminedbytheMinistryofEnergy(inaccordancewithourfavorableopinion)andthefiscaltermsdeterminedbytheSHCP.Uponapprovalbythecontractparties,theexistingIntegratedE&PContractorFPWCwillbereplacedbythenewcontractforexplorationandextractionwithouttheneedforabiddingprocess.Ifthecontractpartiesdonotagreetotheproposedtechnicalandfiscalterms,theoriginalIntegratedE&PContractorFPWCwillremainvalidandunmodified.During2015,weplantomigrateeachoftheIntegratedE&PContractscorrespondingtothe(i)SantuarioandMagallanesfieldsintheSouthernregionofMexico,(ii)theAltamira,Pnuco,SanAndrs,TierraBlanca,bano,NejoandArenquefieldsintheNorthernregionofMexico,(iii)theSoledad,Amatitln,Humapa,Pitepec,MiquetlaandMiahuapanfieldsintheChicontepecbasinand(iv)theCarrizofieldintheSamariabusinessunitintoacontractforexplorationandextraction.Similarly,weexpecttomigrateeachoftheFPWCscorrespondingtotheOlmos,Pirineo,MisinCuervito,FronterizoandMonclovafieldsoftheBurgosbusinessunitintheNorthernregionintoacontractforexplorationandextraction.Asofthedateofthisreport,noneoftheIntegratedE&PContractsorFPWCshasyetbeenmigrated.Formoreinformationregardingthesecontracts,pleaseseeBusinessOverviewExplorationandProductionIntegratedExplorationandProductionContractsandFinancedPublicWorksContractsbelowinthisItem4.
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CompetitiveBiddingRounds
InDecember2014,theMinistryofEnergylaunchedRoundOne,pursuanttowhichtheareasthatwedidnotrequestorwerenotassignedtousthroughRoundZero(includingtheareasassignedtousonatemporarybasis)aretobesubjecttobiddingbyusandothercompanies,subjecttocertainrequirements.RoundOneisexpectedtoincludeatotalof169blocks109explorationblocksand60productionblockscoveringanaggregateareaofapproximately28,500squarekilometers.WeplantoparticipateinRoundOne,aswellasinsubsequentcompetitivebiddingrounds.
AspartofRoundOne,theMinistryofEnergywillalsoconductcompetitivebiddingroundsinordertodeterminethepartnerswithwhichwemayenterintofarmoutagreementsfortheexplorationanddevelopmentofcertainareasthatwereassignedtousthroughRoundZero.Intheshortterm,wehaveidentifiedtenopportunitiesforjointventureswithothercompanies.Theselectedareaswereidentifiedonthebasisoftheirtechnicalcomplexity,capitalrequirementsandotherstrategicconsiderations.Wehopethatthesestrategicpartnershipswillhelpusincreaseproductionlevels,acceleratefielddevelopment,gainaccesstonewtechnologiesandbestpracticesintheindustryandreduceourcapitalcommitments.Thefollowingtablesetsforth,byfieldtype,theareasthatweplantoexploreanddevelopthroughstrategicpartnerships:
Type AreaMatureonshorefields Rodador
OgarrioCrdenasMoraSamaria
Matureoffshorefields BolontikSinnEk
Heavycrudeoiloffshorefields AyatsilTekelUtsil
Largenaturalgasdeepwaterfields KunahPiklis
reaPerdidodeepwaterfields TrinExploratusMaximino
NewFiscalRegime
TheHydrocarbonsRevenueLawthatwasadoptedaspartoftheSecondaryLegislationsetsforth,amongotherthings,thefiscaltermstobeestablishedwithrespecttothecontractsforexplorationandextractiongrantedbytheMexicanGovernmenttousortoothercompanies.Formoreinformationregardingthenewfiscalregime,seeTaxes,DutiesandOtherPaymentstotheMexicanGovernmentNewFiscalRegimebelowinthisItem4.
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CapitalExpendituresandInvestments
Thefollowingtableshowsourcapitalexpenditures,excludingmaintenance,foreachofthefiveyearsendedDecember31,2014,andthebudgetfortheseexpendituresfor2015and2016.Capitalexpenditureamountsarederivedfromourbudgetaryrecords,whichrecordtheseamountsonacashbasis.Accordingly,thesecapitalexpenditureamountsdonotcorrespondtocapitalexpenditureamountsincludedinourconsolidatedfinancialstatementspreparedinaccordancewithIFRS.
CapitalExpenditures YearendedDecember31,(1) Budget
2015(2) Budget2016 2010 2011 2012 2013 2014
(inmillionsofpesos)(3) PemexExplorationandProduction Ps. 194,838 Ps. 177,059 Ps. 193,801 Ps. 212,556 Ps. 222,069 Ps. 182,633 Ps. 190,933PemexRefining 22,636 25,157 28,944 29,794 39,767 41,936 42,870PemexGasandBasicPetrochemicals 3,887 3,019 4,468 5,405 7,549 6,825 4,421PemexPetrochemicals 2,462 2,426 2,892 4,003 4,765 3,976 4,637PetrleosMexicanos 206 717 943 1,707 3,006 1,842 1,740Totalcapitalexpenditures Ps.224,029 Ps.208,378 Ps.231,048 Ps.253,465 Ps.277,156 Ps.237,212 Ps.244,601Note:Numbersmaynottotalduetorounding.(1) Doesnotincludecapitalizedinterestfortheyears2010,2011,2012,2013,2014,2015or2016.(2) Amendedbudget,asapprovedbytheBoardofDirectorsofPetrleosMexicanosonFebruary13,2015.(3) Figuresfor2010,2011,2012,2013and2014arestatedinnominalpesos.Figuresfor2015and2016arestatedinconstant2015pesos.Source:PetrleosMexicanos.
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http://www.sec.gov/Archives/edgar/data/932782/000119312515162672/d913051d20f.htm 26/367
TableofContents
TotalCapitalExpenditures
Thefollowingtablesetsforthourtotalcapitalexpendituresbyproject,excludingmaintenance,forthefiveyearsendedDecember31,2014,aswellasthebudgetforsuchexpendituresfor2015.
CapitalExpenditures YearendedDecember31,(1)(2) 2010 2011 2012 2013 2014 Budget2015(3) (inmillionsofpesos)(4) PemexExplorationandProduction
KuMaloobZaap Ps. 18,350 Ps. 21,554 Ps. 22,720 Ps. 29,738 Ps. 34,232 Ps. 28,737TsiminXux(5) 13,312 19,638 14,946AceiteTerciariodelGolfo 28,262 21,919 20,864 20,049 18,943 4,620Cantarell(6) 38,437 36,303 42,139 28,171 18,276 18,432CrudoLigeroMarino(5)(7) 10,000 12,829 8,498Burgos 29,704 19,564 17,324 10,316 11,695 6,830Chuc(8) 2,619 3,730 7,870 9,897 10,618 11,637AntonioJ.Bermdez(6)(9) 9,853 11,218 13,126 11,489 8,840 7,322OgarrioSnchezMagallanes(9) 6,693 7,020 5,148Lakach 1,032 128 194 1,829 6,141 3,136DeltadelGrijalva 5,904 6,501 5,671 6,169 5,348 5,870EkBalam 2,766 725 1,023 2,549 5,304 3,029IntegralYaxch 3,963 1,986 2,485 3,858 4,695 6,595VeracruzBasin(5) 3,703 4,262 2,962ElGolpePuertoCeiba 847 1,274 2,691 3,708 4,148 3,758CactusSitioGrande(5)(10) 1,384 1,995 2,544 4,208 3,928 2,500BellotaChinchorro(11) 5,518 4,912 3,101 3,607 3,739 5,474IxtalManik(5) 1,631 1,815 1,909IntegralPozaRica 2,936 4,687 4,948 1,721 1,695 1,313JujoTecominoacn(6) 6,584 3,658 3,555 3,336 1,680 1,380TamaulipasConstituciones 1,967 3,800 3,313 2,736 1,205 1,273CosteroTerrestre(5) 516 1,110 457CuencadeMacuspana(5) 614 874 852AynAlux 1,212 591 56 34 789 976Arenque(6) 1,155 1,159 1,241 1,696 708 339Lankahuasa(5) 37 33 86StrategicGasProgram(6)(5) 27,944 27,790 29,870 1,394 OchUechKax(7) 1,160 1,084 964 80 CarmitoArtesa(10) 452 319 611 30 Caan(8) 1,112 658 1,093 27 Crdenas(11) 1,062 226 4 OtherExploratoryProjects(6)(12)(13) 4,208 28,070 31,403 31,500OtherDevelopmentProjects 21 58AdministrativeandTechnicalSupport 613 1,280 2,188 1,338 1,078 2,996
Total 194,838 177,059 193,801 212,556 222,069 182,633PemexRefining
FuelQualityInvestments 3,313 6,571 6,558 2,801 7,814 11,418ResidualConversionfromSalamancaRefinery 64 78 155 909 1,310 1,743ReconfigurationofMiguelHidalgoRefineryinTula 1,077 3,546NewRefineryinTula 139 60 446 5,204 468 TuxpanPipelineandStorageandDistributionTerminals 823 770 597 255 275 152MinatitlnRefineryReconfiguration 4,633 2,850 5,366 Others 13,664 14,827 15,822 20,625 28,823 25,077
Total 22,636 25,157 28,944 29,794 39,767 41,936PemexGasandBasicPetrochemicals
AdaptationofFractionationPlantsandConversionoftheLiquidsSweeteneratNuevoPemexGPC 8 53 880 533
Refurbishment,ModificationandModernizationofNationwidePumpingandCompressionStations
39 47 134 255 596 152
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30/4/2015 Form20F
http://www.sec.gov/Archives/edgar/data/932782/000119312515162672/d913051d20f.htm 27/367
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YearendedDecember31,(1)(2) 2010 2011 2012 2013 2014 Budget2015(3)
PreservationofProcessingCapacityatNuevoPemexGPC 280 228 268 237 504 201ConditioningofFacilitiesforEthaneSupplyatCactusGPC 105 313 357ConservationandModernizationoftheStorageAreaatCoatzacoalcosAreaGPC 6 20 71 286 223
ModernizationofAreasofTransportationProductsofGPCs 155 252 646IntegralProjectofElectricReliabilityatGPCs 240 332IntegralMaintenanceofPipelineSystemsforNaturalGasandLPGStageII 209 254
ModernizationofMeasuring,ControlandSecuritySystemsofGPCs 284 273 187 577IntegralMaintenanceofPipelineSystemsforEthane,BasicPetrochemicalsandSecondaryPetrochemicals 13 176 192
CryogenicPlantatPozaRicaGPC 1,767 1,103 801 498 132 ModernizationandRehabilitationofFacilitiesoftheSupplyandWaterTreatmentSystematNuevoPemexGPC 10 29 47 117 379
RehabilitationofFireProtectionNetworkatGPCs 162 125 156 545 82 ModernizationofSystemsforMonitoring,ControlandSupervisionofTransportationbyPipeline 24 79 36 49
ConservationofOperationalReliabilityatPozaRicaGPC 166 92 126 56 40 IntegralMaintenanceofCryogenicPlantNo.1atNuevoPemexGPC 30 42IntegralMaintenanceofGasSweeteningPlants1,2,3and12atCactusGPC 30 71
RefurbishmentandModernizationofNaturalGasTurbocompressorsoftheCryogenicPlantsatNuevoPemexGPC 27 223
OperationalReliabilityofthePipelineDivisionAssets 12 61RefurbishmentandModernizationoftheProcessingSystemsandEquipmentofLaVentaGPC 12 7
ProjectofRehabilitationandIntegrationofBurnersVentingSystematCiudadPemexGPC 205 31 60 120 9
PetrochemicalPipelinesviaAgave2004 2 InfrastructureforTransportationofPetrochemicalProductsfromNuevoPemexCactustoCoatzacoalcos 2
IntegrityManagementoftheRiskBasedPipelineintheNorthernZone 161TechnologicalUpgradeofControlSystemsforLiquefiedGasTerminals 140
ModernizationofSystemsforMonitoring,ControlandSupervisionofTransportationbyPipelineStageII 89
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30/4/2015 Form20F
http://www.sec.gov/Archives/edgar/data/932782/000119312515162672/d913051d20f.htm 28/367
TableofContents
YearendedDecember31,(1)(2) 2010 2011 2012 2013 2014 Budget2015(3)
IntegralModernizationofMeasuringStations 6Others 1,248 1,369 2,845 3,490 3,363 2,178
Total 3,887 3,019 4,468 5,405 7,549 6,825PemexPetrochemicals
ModernizationandExpansionofProductionCapacityofAromaticsTrainIatCangrejeraPC 1,354 941 777 495 539 24
RehabilitationofAmmoniaPlantIVandIntegrationandAuxiliaryServicesforCosoleacaquePC 40 480 786
ModernizationofFireProtectionNetworkatCangrejeraPC 11 205 284InfrastructureforMaintenanceandIndustrialServicesAreas 24 173 251ConditioningInfrastructureforStorageAreastoMaintainProductionatCangrejeraPC 8 20 98 162 98
EfficiencyinStorageandDistributionI 6 82 82 221 142 242MaintainingProductionCapacityofEthaneDerivativesChainIIatMorelosPC 224 78 125 163 136 84
ModernizationandOptimizationofInfrastructureandAuxiliaryServicesI 26 30 8 13 120 341
ModernizationandExpansionofProductionCapacityofEthaneDerivativesChainIatMorelosPC 56 86 5 208 116 208
MaintainingProductionCapacityofAuxiliaryServicesII 2 2 1 94 114 314MaintainingProductionCapacityofAuxiliaryServicesIIIatCangrejeraPC 42 17 7 50 113 93
RehabilitationofFacilitiesforPhysicalSecurityatMorelosPC 6 1 73 51 98 46MaintainingProductionCapacityofEthaneDerivativesChainIVatMorelosPC 4 78 206 288 89 38
MaintainingP