Opportunities for the Norwegian industries in Mexico

Sven Feldhaus, Country ManagerTrondheim| 18. January2018

SvenFeldhaus• Bachelors degree inElectronicEngineeringfrom ITESM(Tecnológicode

Monterrey)• MBAfrom IESE,Barcelona,Spain• 20years experience inthe EnergyIndustry – Oil,Gas&Renewables• Worked internationally inNorthandSouthAmerica,Europe andSouthEastAsia

Oil &Gas:• Ustream- SchlumbergerWireline &Testing – Field• Upstream OffshoreConstruction- GlobalIndustries,Technip,Swiber – Commercial &CountryHead(Manager,President)• Consulting - E&IX(EnergyandInfrastructure Exchange)- Owner

Renewables:• Thermal andPVSolar– Imprema,IthacaUK– Owner/Partner

Information Technology:• ERP/Industry Solutions – HP,GlobalIndustries– CIO,Strategy andCommercial

Offshore O&G expenditure 2018-21 per market

Source:Rystad Energy2017AnnualOffshoreOil&GasMarketReportforNORWEP

Mexico– GeneralInformation

• Popultaion: 131Million

• GDP: $18,900USdollarsperperson

• Inflation: 2017– 6.4%

• ExchangeRate: 19.20pesosperdollar

• PoliticalSystem: Presidential– Senate&Congress

• Structure: 32FederalStates

• RulingParty: PRI2013-2018

• Elections: 2018

• EconomicDrivers: Oil&Gas,Turism,Automotive,AerospaceandInformationTechnologyManufacturing,ForeignTransmittals

Mexico– Oil &GasIndustry

1938

Nationalizationof Oil &GasIndustry

SingleNational OilCompany

1978

DiscoveryofCantarellReservoir

SignificantProductionGrowth

Inefficiencies settle in

1994

GreatFinancialCrisis

2000

Firstopositionparty winsPresidencysince 1910

2014

EnergyReform

Dissolution of Oil&GasMonopoly

Birth of OffshoreO&GIndustry inMexico

Mexico– PemexToday

• Since EnergyReform was passed,it changed from NOCto Productive State Company…• Is inbad financial situation…..but stabilizing• Main source of income for FederalGovernment• Budgethasto beapproved by Congress• It´s headis appointed by the President

FinanceinformationfromPEMEXhttp://www.pemex.com/ri/herramientas/Paginas/cifras.aspx

Pemex– Organization andLocationsLocations:Corporate:• MexicoCityOperational Upstream:• Villahermosa• CiudaddelCarmen• PozaRica

ChiefExecutiveOfficer

(CarlosAlbertoTreviñoMedina)

CogenerationandServices

Drilling&OtherServices Ethylene Exploration&

Production Fertilizers IndustrialTransformation Logistics

Planning,CoordinationandPerformance InformationTecnologies

PartnershipsandNewBusiness Finance

AdministrationandServices ProcurementandSupply

Legal InternalAudit

Projects andBudget2018No. Code ProjectName Description

Region/ProductionAsset

AssignedBudget(MUSD)b

1 03998039 Ku-Maloob-ZaapLocatedinfrontofthecoastsofCampecheandTabascointheGulfofMexico.Includesthefields:Ku,Maloob,Zaap,Bacab,Lum,Ayatsil,Tekel andPit.Contemplatespressuremaintenance,infrastructuredevelopmentandextraheavyoilmanagement.

NortheastMarine/Ku-Maloob-Zaap 2,313

2 10101099 ChucIntegratedbythefields:Abkatun,Chuc,Pol,Caan,Kanaab,Batab,Tumut,Homol,Che,Chuhuk,Etkal,kuil,Onel,Pokoch,Uchak yWayil.Includestheexploitationandfieldsmaintenance,drillingofproductionwells,extendthepneumaticpumpingnetworkandimprovetherecoveryprocessinChuc.

SouthwestMarine/

Abkatun-Pol-Chuc1,037

3 1218T4L0021 MarineLightOilLocatedinfrontofthecoastsofTabascoandCampeche,approximately75kmNortheasttotheTerminalMaritima DosBocas.Considersdevelopmentandexploitationof12fields:Sinan,May,Bolontoku,Kab,Yum,Citam,Mison,Nal,Ichalkil,Och,Uech yKax.

SouthwestMarine/Litoral

Tabasco702

4 S/CVE CEEk-Balam DevelopmentandexploitationoftheoilandassociatedgasreservoirsintheEk andBalam fields,foundintheUpperJurassicOxfordianperiodcontinuingwiththeexploitationfromreservoirsattheUpperCretaceousBreach. - 688

5 02096020 Cantarell Contemplatesdrillingactivities,mayorandminorwellinterventions,pressuremaintenancethroughN2injectionandsourgas,infrastructureconstructiontotakegasadvantageandcrudeoildehydration.

NortheastMarine/Cantarell 594

6 1218T4L0013 ChalabilExploration LocatedatshallowwatersinfrontofCampecheandTabasco.Thisprojectisconsideredfortheincorporationofreserves,withexpectedoilandgashydrocarbons.Theestimatedprospectresourcesareof4,490millionboe.

SouthwestMarine/NA 276

7 10901107 Yaxche Located20kmNortheasttotheTerminalMaritima DosBocas.IntegratedbythefieldsYaxche andXanab.Requiresadditionalinvestmenttofinishtheinfrastructurefordevelopment,maintenanceandwelloperation.

SouthwestMarine/Litoral

Tabasco273

8 1218T4L0017 Tsimin-Xux Contributewiththecommitmentofaimedproductionandcrudeoilqualityintheperiod2015-2039,incorporatingavolumeofaround404millionboe and2,630billioncubicfeetofgas.

SouthwestMarine/Litoral

Tabasco208

9 S/CVE UchukilPhaseIIIncorporatelightoilhydrocarbonsreservesofaround372millionboe,searchingtheextensionofthestablishedreservoirsandevaluatethepetroleumpotentialassociatedtoMesozoicandCenozoicErasbywellsdrillingandstudiesthatintegratethegeologicalandgeophysicalinformation.

SouthwestMarine/NA 200

10 1118T4L0002 WestCampecheExploration

TheWestCampecheProjectislocatedinthemarineportionoftheSoutheastBasinsinfrontofthecoastsofCampeche.TheexpectedhydrocarbonstobeincorporatedarelightandheavyoilsfromreservoirsconstitutedbycarbonatedrocksmainlyfromtheMesozoicEra.

NortheastMarine/NA 114

a. 2018ApprovedFederalExpenditureBudgetProject,InvestmentProgramsandProjects.http://www.ppef.hacienda.gob.mx/work/models/PPEF2018/docs/52/r52_t9g_pie.pdf

b. Exchange rate considered of 18.80 MXN per USD.

1.1

2.1

1.2

1.4

RoundResults 1.1,1.2,1.4,2.1

https://www.gob.mx/cnh/

NewPlayers – Round1.1• Round 1.1: 14 Shallow water areas covering a total of 4,222 km2 at the Southeast Basins. This has been the most

explored and with biggest percentage of accumulated production province in Mexico. Out of the 14 areas, onlytwo of them were actually awarded, the other twelve were declined by the bidders. These awarded areas arelocated between 20 to 60km away from the shores of Veracruz and Tabasco, and with water depths of up to170m.

NewPlayers – Round1.2• Round 1.2: The second bid from license round one consisted in 5 shallow water areas covering 278.5 km2 at

the Marina Suroeste and Litoral Tabasco regions which are also part of the Southeast Basins. The 3 awardedareas in this round are located at about 30 to 50 km from the shores of Tabasco and Campeche and withwater depths between 28 to 45m.

NewPlayers – Round1.4• Round 1.4: The fourth bid from the first licensing round belongs to 10 deep water blocks covering a total area of

23,835 km2 and located at both Perdido Area and Saline Basin. Only two blocks from these 10 were declined bybidders, the other eight awarded blocks are located at about 120 to 280 km away from the shores of Tamaulipasand Veracruz with water depths of 500 to 3,600m.

NewPlayers – Round2.1• Round 2.1: First bid of the second licensing round consisted in 15 shallow water blocks covering a total of 8,909

km2 at the oil provinces of Tampico Misantla, Veracruz and Southeast Basins. Ten blocks were awarded out of thefifteen, these are located at 20 to 80km away from the shores of Veracruz, Tabasco and Campeche with waterdepths of 30 to 500m.

Q&A

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