The Purpose of the Joint Operation Agreements, to Ensure the Maximum Value for Pemex and the State

Petróleos Mexicanos made adjustments to the Joint Operation Agreements (AOC, per the acronym in Spanish) for the farmouts in the Ogarrio, Cárdenas-Mora and Ayin-Batsil blocks. These changes, authorized and published by the National Hydrocarbons Commission, have two fundamental purposes:

1. Obtaining a greater profitability and value capture for Pemex in accordance with the contents of the 2017-2021 Business Plan, and thus contribute to the appropriate capture of the oil rent to benefit the State. For this purpose, the recommendations of the Ministries of Energy and Finance and Public Credit were taken into consideration.

2. Align the agreements, reflecting the best international practices applicable to the optimal development of the shallow water fields and mature onshore fields. This process took the feedback received by the industry during the corresponding stage of the bidding process into consideration.

The AOC establish the rights and obligations that will rule Pemex’s relationship with its future partners in hydrocarbon exploration and production. These documents are of a public nature and may be consulted at the website of the National Hydrocarbons Commission (CNH per its acronym in Spanish) www.rondasmexico.gob.mx.

The three association processes with Pemex in the Ogarrio, Cárdenas-Mora and Ayin-Batsil blocks are conducted by the CNH. Access to the data room for the farmouts will be granted on August 3 and the event for the presentation, opening the proposals and announcement of the winning bidders will be held on October 4.

The Ogarrio block is a mature field located in the municipality of Huimanguillo, Tabasco, which has the potential to significantly increase the factor of oil recovery. It has 42 million barrels of crude oil equivalent (Mmbpce per its acronym in Spanish)  in proven reserves.

Cardenas-Mora, located to the south-east of Comalcalco, Tabasco, has the potential of secondary and tertiary recovery, with proven reserves of 92 Mmbpce.

For its part, Ayin-Batsil is a shallow water field located in the coast of Tabasco. It contains 3P reserves for around 359 Mmbpce, with potential for exploration growth.

With actions such as these, the energy reform moves forward and Pemex is strengthened to continue being Mexico’s flagship company and a world reference in the energy sector.

Las menciones de Pemex pueden referirse a Petróleos Mexicanos o a cualquiera de sus Empresas Productivas Subsidiarias.