Financing opportunities in the Mexican Offshore Oil & Gas sector.

Transcription

1 Financing opportunities in the Mexican Offshore Oil & Gas sector.

2 The recent Mexican Energy Reform Constitutional Amendments On December 20, 2013 Mexican Congress passed the Constitutional Energy Bill. The bill included amendments to three key articles of the Mexican Constitution, which used to contain the main restrictions for private investment in the oil & gas industry. Statutory Amendments On August 2014, the secondary laws were enacted to implement the Constitutional energy reform: New laws Governmental Authorities New Regime

3 The new regime for Upstream activities The Hydrocarbons Law provides two new regimes granting the right to explore and produce hydrocarbons: Entitlements (Asignaciones) granted solely to State Productive Enterprises (wholly owned state entities); and Exploration and Production Contracts ( E&P Contracts ) entered into with private parties or State Productive Enterprises. Migration of Entitlements or Farm-outs Opportunities for the offshore support industry with Pemex, via Service Contracts under the Entitlement regime and Farm-outs as JV partners of Pemex. Also, opportunities will open with E&P contractors via services agreements or via participating in the biddings in consortium.

4 E&P Contracts License Profit-Sharing Contracts Production-Sharing Contracts Service Contracts

5 What's going on in the Mexican Offshore Oil & Gas sector? Round 0 On August 13, 2014, SENER announced the results of Round 0 and granted Pemex the following: 100 percent of the requested 2P reserves equivalent to a volume of 20,589 billion barrels of oil equivalent, and almost 15.5 years of production, considering the current production level of 2.5 million barrels per day. 67 percent of the requested prospective resources, equivalent to a volume of 22,126 billion barrels of oil equivalent, and approximately 5 years of production.

6 Round 1 First Bid 14 areas of shallow water for exploration and subsequent production operations. More than 4 thousand square km2 distributed across the states of Campeche, Tabasco and Veracruz. Type of contract: Production-Sharing. Participants: 9 bidders: 4 consortiums and 5 individual companies (out of the 7 consortiums and eighteen individual companies that prequalified). Outcome: On July 15, CNH announced the results of first tender process of Round One. Only 2 blocks were awarded. Eight of the blocks received no bids at all, and four did not receive a qualifying bid. Both awarded blocks went to the consortium of Sierra Oil Gas, Talos Energy and Premier Oil.

7 Round 1 Second Bid The second tender process will take place on September 30, 2015 and will cover 9 additional blocks in shallow waters. Type of contract: Production-Sharing. Participants: There are 14 prequalified bidders (5 consortiums and 9 individual companies) Consortiums ENI International B.V., and CASA Exploration, L.P. Pan American Energy LLC and E&P Hidrocarburos y Servicios, S.A. de C.V. Fieldwood Energy LLC, and Petrobal S.A.P.I de C.V Petronas Carigali International E&P, B.V., and Galp Energia E&P B.V. Talos Energy LLC, Sierra Oil & Gas, S. de R.L. de C.V. and Carso Oil & Gas S.A. de C.V.

8 Individually Chevron Energía de México, S. de R.L. de C.V. CNOOC International Limited Compañía Española de Petróleos, S.A. (CEPSA) UNIPERSONAL DEA Deutsche Erdoel AG Lukoil Overseas Netherlands B.V. ONGC Videsh Limited Plains Acquisition Corporation Statoil E&P México, S.A. de C.V. Shell Exploración y Extracción de México S.A. de C.V. The third tender will cover 25 onshore blocks with a due date for bids on December 17, 2015 (60 companies have started the prequalification process). The final bidding guidelines will be published on November 10, 2015 and on November 27, 2015 the prequalified bidders will be announced. The tenders for deep water and unconventional blocks (shale) have not been announced yet, but CNH has indicated its plans to launch those processes in early 2016.

9 Financing opportunities for Mexican Projects Project Finance Private Equity Funds Capital Markets Mexican MLPs

10 Thank you! For any follow-up questions or queries regarding this presentation or any of the matters discussed herein, please contact Hector Arangua at (5255)