World Green Land Air Water OrganizationWorld Green LAW

World. Green. Land. Air. Water. Organization(World. Green. LAW) 世界绿色土地空气水组织（WGLAW） 299 Park ave (49 st) 6 FL. , New York 10171 USA Ph: +1 -212 -739 -0808 Fax: +1 -212 -739 -9607 sec@worldgreenlaw. org WGLAW Advisory Panel of Super Experts Teams are Managing by Sonny Lee & Williams Mills WGLAW咨询小组由超级专家组成由桑尼李和威廉姆斯 米尔斯领导 Investing in Mexico’s Energy Sector PEMEX Exploration & Production (PEP) Strategy Summary of Investment Opportunities for Prospective International Partners Mexico Jan-01 -2014

World. Green. Land. Air. Water. Organization(World. Green. LAW) 世界绿色土地空气水组织（WGLAW）

The petroleum industry is the linchpin to Mexico’s economic growth WGLAW & Ing. Carlos Morales Gil General Manager, PEMEX Exploration & Production México D. F. , Jan 01 2014

Oil Exploration and Production Require A Profound Knowledge of Multiple Disciplines Exploration Assessment of Potential Petroleum Available Addition to Proven Reserves Development Defining Boundaries Project Planning Construction Drilling PROJECTS Production Extraction / Oil Field Ops & Management Distribution Marketing/Sales

Location of Mexico’s Hydrocarbon Basins México Unconventional (shale gas) Southeast Tampico-Misantla Burgos Veracruz Golfo de México Sabinas Deepwater Yucatán Platform Rock Diversity of the Various Basins Chicontepec Tsimin Cantarell

Mexico’s Hydrocarbon Resources & Reserves Thousand Millions (billion) of Barrels Crude Oil Equivalent Natural Gas and Crude Oil Basins Prod. Acum. Basin 1 P Southeast 45. 4 12. 2 28. 4 Rec. Reserves 2 P 3 P Conv. 18. 2 25. 1 20. 1 Non. Conv. Tampico Misantla 6. 5 1. 0 7. 0 17. 7 2. 5 34. 8 Burgos 2. 3 0. 4 0. 6 0. 8 2. 9 15. 0 Veracruz 0. 7 0. 2 1. 6 0. 6 Sabinas 0. 1 0. 0 0. 4 9. 8 Deep Waters 0. 0 0. 1 0. 2 0. 7 26. 6 Pltfrm. Yucatán Unconventional (Shale Gas) Prosp. Total 55. 0 0. 5 13. 9 26. 2 44. 5 Development & Production Projects 54. 6 60. 2 Exploration Projects

PEMEX Exploration & Production (PEP) Technology Strategy Presently, PEP has identified two areas where it can achieve technological leadership and six specialties it plans to adapt and implement. In all others, it will pursue a strategy of competitive purchasing and acquisitions. Leader Adapter Naturally fractured Deepwater Technologies Unconventional Fields Subsoil Imaging Smart Buyer Extra-heavy Offshore Oil EOR/ IOR carbonates Fluids Petrophysics Stimulants Subsoil Drilling and Completion Field Monitoring Critical Natural Gas Fields Chemicals and Drilling Equipment Processing Facilities Shale gas Sand Control Water Management Simulation Ducting and Riser Systems Flow Controls Completion Equipment Drilling & Completion Plant & Facilities Systems Production

Pemex Needs to Establish Contracting Strategies by: Project, Asset and Region Scope of Contract YES – it has adequate Human and Technology Resources Cantarell Ku-Maloob-Zaap Tabasco Shore Contractual Transactions adequate Financial Resources Burgos Chicontepec Complejo A. J. Bermúdez Jujo-Teco NO – Does NOT have Human & Techno. resources Contracting Does NOT have the financial resources International Partners Integrated contracts without financing Integrated contracts with financing Regions Affected: Deepwater Chicontepec Mature Fields Goods & Services Ability to Technology Financial & HR Resources Execute

Pemex Has Limited Execution Capability Companies A consequence of Pemex’s insufficient financial, technical and human resources is that several attractive projects are not being developed. These include: Mature Fields Chicontepec Basin Extra-heavy Crude Oil Shale oil/gas Deepwater Exploration & Drilling Solution: Partnerships with International Oil Selection Criteria of Partners Technical and operational field competence Financial capabilities Pemex-based contractual agreements

Mature Fields A large number of mature fields are not being exploited due to insufficient investment and human resources: Residual Reserves (MMbbls) 725 Southern Region 105 90% of oil production Is sourced from 52 fields 47 47 66 Qo > 5 mbd Oil Fields overed from Original Volume Fr prom. 3 P 1 P 2 P 3 P 10, 238 24 Original Volume (MMbbl) Fr prom. (%) Mature Fields – by region 379 Northern Region Poza Rica - Altamira Qo< 5 mbd Mature Fields: 1938 to 2010 North & South Regions The following oil fields stand out: 99 105 206 Original Volume Fr prom. 3 P 20, 658 18 Salina del Istmo y Comalcalco in the southern region; Poza Rica, Faja de Oro & Altamira in the northern region. Characteristics of fields available for reactivation: Attractive Extraction Potential, Above-average ROI Source: 01/01/2010 Reserves data for northern and southern regions.

Deepwater Oil Exploration is Currently Centered in Two Areas of the Gulf of Mexico To the north, in the Cinturón Plegado Perdido and Salina Grande geological provinces, the goal is to find liquid hydrocarbons in the Neogene and Paleogene strata. At the Han and Holok projects, located in southern geological provinces of Cinturón Plegado de Catemaco and Marina Salina del Istmo, the objective is to exploit wet gas reserves from the Neogene strata and evaluate the potential for wet gas and light oil extraction to the east. In other areas, activities will consist primarily in performing regional studies for a better understanding of prospective hydrocarbon resources. 

Proof of Hydrocarbon Potential from Deepwater Sources Natural Gas Basin: HOLOK Oil Basin: PERDIDO 2919 m Bicent. 2919 m 2874 m Bicent. West. Pegasus 2185 m 2147 m 1933 m 1928 m 1803 m 1785 m Max Muralla Smith IV Bicent. Centenario 1493 m Cent. 1698 m Max Smith 1230 m Max Smith 1194 m 1186 m Max West Smith Pegasus 1122 m Max Worker Smith 1029 m 945 m 851 m 810 m Worker Bicent. 988 m Voyager 805 m 739 m 681 m 670 m Voyager 936 m Worker Voyager 660 m 623 m 513 m Max Worker Smith Ultra Deepwater 2532 m Deepwater 500 m Chuktah 2004 Puskon 2011 Tamil 2008 Nab 2008 Etbakel 2008 Kabilil 2009 Lalail 2007 Chelem 2007 Leek 2009 Noxal 2005 Talipau Lakach 2012 2006 1000 m Holok 2009 Tamha 2008 Hux 2012 Lakach 2 DL 2010 Catamat 2009 1500 m Nen 2011 Labay 2009 Success Rate: 60% Piklis 1 DL 2000 m Caxa 2012 Piklis Ahawbil 2010 Kunah 2012 1 DL 2012 Trion-1 2012 17 2500 m Supremus-1 2012 Maximino PEP-1

PEMEX’s Deepwater Exploration Efforts Yielding Promising Results In 2012, 55% of the addition to oil reserves 3 P came from deepwater sources Deepwater oil accounts for 26 billion of the >54 billion barrels (54, 600 MMbbl) of Mexico’s currently estimated prospective oil reserves Total 1, 053 82% 1, 482 93% 1, 774 95% 1, 438 96% 1, 461 18% 77% Potential Conventional Reserves: Total: Plays Prospects 54, 600 MMbbl 19, 000 35, 600 2007 1, 589 541 2, 525 09 Deepwater Southeastern Fields Veracruz Plataforma Yucatan TMG 2, 932 Burgos 11 35% 2012 Other The Trion Field, discovered in 2012, may be amongst the largest findings within the Paleogene strata in the deepwaters of the Gulf of Mexico. Recurso descubierto (MMbpce) 2, 341 Sabinas 10 55% 26, 547 20, 083 395 08 1, 731 SE Fields AP Gd. M SOURCE. Wood Mackenzie, PEMEX Libro de reservas

The Technical and Commercial Performance of PEMEX in the Past Decade Was Competitive with Global Peers The increase in proven reserves between 2003 -2012 positions PEMEX in third place of the global rankings. PEMEX explorations resulted in USD 125 billion of added value for the Mexican Government. Assuming PEMEX Exploration was subject to US taxation, the value added to PEMEX by explorations would rank in second place versus its global peers.

Giant Natural Gas Fields Have Been Discovered in the Southern Region PEMEX Is Evaluating, Setting Boundaries and Developing These New Sites Ixic. Sayab Cordilleras Mexicanas Aktutu-1 Lipaxan-1 Maklipa-1 Patokto-1 New Discoveries Loc. Nat-1 Loc. Yoka-1 The newly discovered fields are: Hem-1 Pupuyu-1 Noxal, Lakach, Lalail, Leek, Nen, Piklis and Kunah. The Lakach field is being developed. Kunah Atal-1 Naajal-1 Matlani-1 Kunah-1 DL Mapuli-1 Tumtah-1 KUNAH-1 Alaw-1 Makkab-1 Labay-1 Catla-1 Piklis-1 Salina del Istmo The Kunah and Piklis fields have been surveyed. Commercial development is awaiting technical and economic approvals. Ahawbil-1 Piklis-1 DL Kuyah-1 Lakach-2 DL Lakach-1 Nen Paynum-1 Currently, exploration is focused toward the northeast, in search of wet gas and light oil. Nen-1 Lalail Lakach Noxal-1 Leek-1 Piklis Lalail-1 Reserves & Potential Tabscoob-201 Noxal Initial indications confirm minimum natural gas reserves of 5. 0 Tcf. Leek Projected actual natural gas reserves range from 5. 0 to 16. 5 Tcf. Cinturón Plegado Catemaco Mioceno Inferior Qg mmpcd Pronóstico preliminar de producción Development of Lakach Field Projected investment: USD 2. 5 billion Initial production in 2016; maximum production - 400 MMcf/da – by 2017 The proposed infrastructure will include exploitation of the Kunah and Piklis fields to attain a production rate of 500 MMcf/da during 7+ years. Años

Scope of the Project The objective is to begin production in 2016: in the first 6 months using a platform with a daily capacity of 200 MMcf/da; in the following 22 months with a platform of 400 MMcf/da capacity. It is projected that 886 MMMcf of natural gas will be extracted by 2025. Illustration Development of 7 drilling locations and recovery of Lakach-2 DL drilling site Installation of: • 2 gas lines of 18”Ø x 60 km • 18” Ø & 6” Ø jumpers for underwater equipment interconnection • PLETS & ILS for interconnecting wells • 60 km of umbilicals • Monitoring and control systems Erect a gas conditioning plant with a daily capacity of 400 MMcf 22

Summary of Area Perdido Project Objective: To evaluate the petroleum potential of tertiary and mesozoical plays, prioritizing the search of structures with high volumes of light oil • Area: 39, 172 km 2 • Water depth: 500 - 3, 500 m • Seismic 2 D y 3 D: 15, 215 km & 35, 378 km 2 • Type of hydrocarbon: Light oil and gas • Related resources, opportunities & locations (MMbbl) Fuente: BDOE-II actualizada por la SE P 90= 3, 900 Pm= 8, 200 P 10= 13, 200 • Principal plays: Eoceno Inferior y Oligoceno • Secondary plays: Mioceno, Paleoceno, Cretácico • Main risk: Sealing & reservoir rock 24

Perdido Area Project Development Based on Achieved Results Nine economic areas under consideration, based on geographical location and potential. Recoverable reserves estimated at 4. 6 billion barrels of oil on an investment of USD 40 billion. Base Case (average) Economic Areas: Total Reserves: Maximino, Vasto, PEP, Ostionero, Humus, Plenus, Trion, Corfu, Filium 5. 0 MMMbbl Commercially Recoverable Reserves: 4. 6 MMMbbl Total Investment: USD 39. 6 billion Net Present Value: USD 5. 8 billion

Unconventional (shale) Hydrocarbon Resources Map Showing Unconventional Hydrocarbon Areas Focus on primary regions covering 24, 500 km 2 To date nine exploratory wells have been completed in the Burgos and Sabinas basins. Oil, dry and wet natural gas areas of production have been identified; these represent equivalent reserves in the order of 112 billion barrels. 1 Área Garza 4, 000 km 2 2 Área Anhélido 11, 000 km 2 In order to ascertain then nature of the resources found by type of hydrocarbon - and to evaluate the productivity of the reservoirs, the Ministry of Finance authorized a Shale Oil and Gas Study. The study was endorsed by the PEMEX Investment Group and a technical review by the CNH is currently under way. Based on the prospects and the distribution of types of Hydrocarbons three priority areas have been defined: 3 Total surface area: 120, 000 km 2 Legend 9, 500 km 2 Heavy oil Light oil Wet gas Dry gas Área Tantocob kilómetros 1. 2. 3. Garza Area Anhélido Area Tantocob Area

Strategic Objective: Take Advantage of Available Hydrocarbons There are several opportunities that are beneficial to Mexico Total Cost: Exploration & Development + Cost of Production Price p/bbl (USD) Conventional Terrestrial USD 4 -12/bbl 100 Unconventional Terrestrial USD 25– 35/bbl 100 Shallow Water USD 6– 16/bbl 100 Deepwater USD 25– 40/bbl 100 Natural Gas USD 1. 5 -3/Mcf USD 9– 18/bbl USD 3. 5/Mcf USD 21/bbl

Investment (CAPEX) Requirements for the Development of Reserves and Prospective Resources Resource Reserves (billions of barrels) Cost USD/bbl Total Investment (billions of USD) Terrestrial and Shallow Waters 45 10 USD 450 Unconventional (shale) 60 30 USD 1, 800 Deepwater 27 40 USD 1, 080 Chicontepec, Mature Fields & Gas 28 15 USD 420 USD 3, 750 Mean Annual CAPEX: USD 37 billion Max. Annual CAPEX: USD 62 billion

Escenarios de producción y necesidades de inversión Crude Oil Case Natural Gas Annual Investment Total Nr of Wells Base USD 24 billion 20, 000 Average USD 37 billion 30, 000 Max. Potential USD 62 billion 50, 000

this Note: This summary was translated and edited by. WGLAW. , from a presentation given in Jan 01 2014 by Ing. Carlos Morales Gil, General Manager de hidrocarburos. of. Producción PEMEX Exploration and Production Thank You sec@worldgreenlaw. org

World. Green. Land. Air. Water. Organization(World. Green. LAW) 世界绿色土地空气水组织（WGLAW） 299 Park ave (49 st) 6 FL. , New York 10171 USA Ph: +1 -212 -739 -0808 Fax: +1 -212 -739 -9607 sec@worldgreenlaw. org