pemex’s ambitions as a productive enterprise of the state 20… · · 2015-07-29pemex’s...
TRANSCRIPT
www. .compep.pemex
PEMEX’s Ambitions as a Productive
Enterprise of the State
Julio 22, 2015
Gustavo Hernández García
Director de Operaciones de E&P
www. .compep.pemex 2
Energy reform Restructuring
Transformation
Oil
prices
decline
Competition for acreage
Ability to partner
Large asset base / important proportion to
be migrated from Entitlements to Contracts
of Exploration & Extraction
Industry practices for recruitment,
procurement and compensation
Future growth based on frontier resources
Budget reduction forces prioritization
Evaluate divestiture and monetization
programs of existing asset base
Develop new third-party financing
mechanisms
Accelerate partnerships
New business model, from regional to asset
type focus (onshore, shallow waters,
deepwater, unconventional, etc.)
Centralization of certain key corporate
functions
Creation of a new drilling subsidiary
Need to develop commercial skills
Pemex is a NOC in transition to become a more
commercial oriented player
36.56 37.87 36.60 35.44 34.80 38.59 40.64 43.06 41.83 42.29 45.28 45.90
90.65 93.09 93.48 95.68 96.79 98.7994.65 90.80
85.8275.23
71.39
52.36
34.4946.81 47.78 50.56
56.11 56.15 52.57 52.45 53.65 54.29 53.98 54.30
92.19 95.60 97.84 97.03 99.03 102.4198.50
94.1592.59
86.3176.98
62.26
45.4550.57
50.0257.01
59.46 58.19 55.32
Mexican Basket Price (dls/bl)
Basket Mayan Isthmus Olmec
Forecast POT I Actual
jan feb mar apr may jun jul aug sep oct nov dec jan feb mar apr may jun jul aug sep oct nov dec
2014
2014 2015
Fuente: Gerencia de Estrategias de Comercialización de Hidrocarburos y BDIPEP.
Fuente: Programa de Operación de la Dirección Corporativa de Finanzas : POT-I versión 1.1, real y proyección 2015 versión 6.1. BDIPEP: junio preliminar.
Avg. 2014
86.5639.58
21-jul Dif. 20-jul 18-jul
Mezcla 49.28 -0.03 49.31 50.11
Maya 47.51 -0.00 47.51 48.32
Istmo 53.41 -0.12 53.53 54.18
Olmeca 55.42 -0.11 55.53 56.48
ene feb mar abr may jun jul ago sep oct nov dic ene feb mar abr may jun jul
Month
Average
Maximum
Month
50.76
june 21st
6 mayo
2015
Market Events of the day for some crude oil markers:
• Futuros de los principales crudos marcadores finalizaron la sesión con ganancias.
• El mercado spot cerró sesión con resultados mixtos siendo los mercados Europeo y
de Medio Oriente los que registraron pérdidas.
• Crudos marcadores de EUA fueron apoyados por expectativa de que inventarios
reporten disminución de 2.3 MMb.
www. .compep.pemex 4
Produce “value” barrels
Production of profitable barrels that result
in economic value for the company
Reduce operating costs
More efficient upstream operation that
allows costs in line with private sector
players
Improve capital allocation
Efficient capital allocation to more
profitable areas through better planning
and risk evaluation
New principles on economic value
creation as per energy reform
3
2
1
Budget reduction forces prioritization;
Reassessing portfolio
Evaluate divestiture and monetization
programs of existing asset base to
mitigate cash starvation
Accelerate partnerships and develop
new third-party financing mechanisms
Oil price environment represents a
challenge, but also an opportunity
to accelerate Pemex transition:
The stakes are high for Pemex, we are overhauling our strategy
and management model to prepare for competition with foreign
firms amid adverse market conditions
www. .compep.pemex
Energy driving forces in Mexico are not that different from
global markets but represent significant challenges to Pemex
as it transitions to a more commercial entity
Trend Driving force Key themes
Rising
technical and
commercial
complexity
Mature basin requiring
intense technology
application, better execution
at a higher cost
Deepwater
Unconventional
Heavy Oil
LNG
HT / HP
Midstream
Stricter
regulation in
every business
aspect
More specialized,
strengthened authorities and
regulators will push
companies to a “fish bowl”
operation
E & P License management (entitlements and
contracts)
No cross subsidization among projects
Segregation of activities across the value chain
Best practice adoption for both resource
management and HSE
Multiple reporting
Strong
competition
Same play level field to
everyone. Pemex has no
advantages by way of policy
Exceptionality of “entitlements”
Acreage granted through license rounds
Talent war
Reliance on partnerships
5
www. .compep.pemex
TE
CH
NO
LO
GY
IN
NO
VA
TIO
N
INV
ES
TM
EN
T
Conventional reservoirs:
Easy and low risk development
Small volumes
Resource volume
Unconventional
reservoirs:
Difficult development
Medium-Large
volumes
Complex development
Large volumes
Reservoirs: Compact
Heavy and Extra Heavy Oil in
Deepwater
Bituminous sands
Hydrates Oil Shale
Oil and
Gas
RIS
K
Technology is critical to face upstream
challenges
6
www. .compep.pemex
• A farm-out process will be implemented for select fields assigned to
PEMEX in Round Zero
• The farm-outs will enable the development of fields with high technical
complexity or high CAPEX requirements which otherwise would
remain underutilized
• Under the new legal framework, the existing contracts with the
corresponding contractors will be migrated into EEC
• By improving fiscal terms, contractors will gain access to additional
resources, currently classified as prospective or contingent, hence
enhancing the reserves and production for the contractor as well as
earnings and taxes for the State
• PEMEX will develop technical and organizational capabilities to
compete for new blocks
• Capabilities acquired will allow to improve PEMEX’s position to
compete for blocks in future bidding rounds
Establish partnerships for
selected assigned fields to
PEMEX in Round Zero
Migrate the current E&P
Service Contracts (FPWC1
and EPIC2) into
Exploration and Extraction
Contracts (EEC)
Position PEMEX for
partnerships
in next rounds
1. FPWC. Financed Public Work Contracts
2. EPIC. Exploration and Production Integrated Contracts 7
PEMEX strategy in partnerships is focused
on three main major objectives
www. .compep.pemex
First stage: Migration of existing contracts
2P Reserves (MMboe)1
Expected Investment (USD billion) Fields
First stage: 22 existing contracts
First block1 569 11.4 Poza Rica-Altamira and Burgos Assets
Second block2 1,639 32.8 ATG and Burgos Assets
1. Includes 10 blocks:
COPFs (Mision, Olmos),
CIEPs (Santuario, Panuco, Arenque, Altamira, Ebano, Nejo, Magallanes)
ATG CIEP (Miquetla)
2. Includes 12 blocks:
ATG (Amatitlán, Miahuapán, Humapa, Soledad, Pitepec),
COPFs (Cuervito, Pirineo, Monclova, Fronterizo)
CIEPs (Tierra Blanca, San Andres, and Carrizo)
www. .compep.pemex
Second stage: Farm-Outs of 16 fields
9
Oil
Perdido Area
Gas
Deep water
Onshore
Total
Maximino,
Trión,
Exploratus
Kunah-Piklis
Samaria, Ogarrio,
Cárdenas-Mora,
Rodador
Extra heavy
oil
Ayatsil-
Tekel-Utsil
Shallow
waters
Bolontikú,
Sinán, Ek
Area
Km2
Cumulative
production
mmboe
Reserves 2015
CAPEX
Billion USD
Oil
Prod´n
March
2015 (tbd)
Gas
Prod´n
March
2015
(mmcfd)
1P 2P 3P
mmboe
176 588 236 420 492 4.9 76 136
143 0 403 750 855 12 4 0.2
469 557 600 691 728 5 76 116
89 0 0 296 410 8 0 0
131 0 0 0 1,007 23 0 0
1,008 1,145 1,239 2,157 3,492 52.9 156 253
www. .compep.pemex 10
Partnership’s strategic objectives Different types of opportunities
Take the most of the potential of a large
base of assets obtained from Round Zero
Improve and expand the existing asset
base
Share risk, brings experience and capital
from others
Increase the operational capacity/ best
practices
Promote the development of business
Technology transfer
PEMEX keeps looking for new business
associations
Financing
of E&P
activities
Joint
Venture
Farm out
Farm in
Merger /
Acquisition
Pemex has analyzed its
portfolio to identify
additional fields for
partnerships
The business
opportunities for private
sector accounts for more
than 15 billion dollars
www. .compep.pemex
Conventional Onshore (Oil)
Shallow waters
Deepwaters
Unconventionals
Exploration
Conventional Onshore (Gas)
1 of 2
PEMEX has identified potential partners that can
provide technology for each type of project
Without partners With partners
Technical competences of
Pemex
Level of technical capacity
High
Upper-middle
Lower-Middle
Middle
Low
www. .compep.pemex
Technical competences of
Pemex
Conventional Onshore (Oil)
Shallow waters
Deepwaters
Unconventionals
Production
and
development
Conventional Onshore (Gas)
Extra heavy oil
(shallow waters)
2 of 2 Level of technical capacity
High
Upper-middle
Lower-Middle
Middle
Low
Without partners With partners
PEMEX has identified potential partners that can
provide technology for each type of project
www. .compep.pemex
Exploration portfolio is focused on 12 projects located
in 108 entitlements
13
Onshore Projects
Terrestres
• Llave (gas)
• Cuichapa
• Comalcalco
• Pakal
Deep Water Projects
• Area Perdido
• Holok (gas)
• Han
Shallow water Projects
• Alosa (gas)
• Uchukil
• Chalabil
• Campeche Oriente
Unconventional Projects
• Shale Oil and Gas
Asignaciones
www. .compep.pemexJulio 22, 2015