| VIEW FROM THE TOP
SHAPING A FUTURE FOR MEXICO’S RESOURCES ALMA AMÉRICA PORRES Commissioner at CNH
18
Q: How have the recent changes in Mexico’s government
them some of the Round Zero. There were external and
and energy policy impacted CNH?
internal factors that influenced the creation of these
A: We are still working in the same framework since the
conditions, such as the global downturn in oil prices
constitutional framework remains unchanged. The 111
and PEMEX’s budget cuts in recent years. The current
hydrocarbon contracts in place represent a stable base
administration’s energy policy calls for the reversal of
for our operations. The new government’s energy policy
these budgetary limitations and greater fiscal support
is focused on strengthening PEMEX. While future bidding
for the NOC. The majority of the commissioners have a
rounds have been put on hold, this in no way represents a
favorable view of this policy and how it allows PEMEX to
negative development from CNH’s perspective. In fact, we
plan its working strategy.
see it as positive for Mexico because we have attempted to reach this dual model where there are operators who
We have requested that the federal administration take
have won contracts through licensing rounds, and PEMEX
an integrated approach toward the management of the
works with entitlements. Unfortunately, what had become
country’s hydrocarbon prospective resources. Mexico’s
evident in the last few years was that while PEMEX’s
prospective hydrocarbon resources total 112.9 billion boe,
technical, administrative and project execution capacities
of which 22-23 percent have been assigned to PEMEX. This
met international standards, its financial capacity lacked
volume will remain unchanged. Apart from PEMEX, the
support resulting in PEMEX’s struggle to meet its
contracts awarded in the licensing rounds represent only
obligations and objectives for several projects, among
11 percent of the prospective resources. This means that
CONTRACTS AND ASSIGNMENTS INVALUE THE VALUE CONTRACTS AND ASSIGMENTS IN THE CHAINCHAIN Low Production Medium Risk
High Production Low Risk
Production
No Production High Risk
Time
415 Assignments
Exploration 2 to 7 years
96 Exploration Assignments 16 Exploration and Extraction Assignments 258 Extraction Assignments 45 Temporary Assignements 28 Shallow
111 Contracts
Development, production and abandonment 1 to 34 years
Evaluation 1 to 4 years
1 R1.1 3 R1.2
27 Deep 1 Trion
Source: CNH
21 Onshore
R1.2
2 Assoc
24 R1.3
Trion
R1.3 R2.3 R2.3 5 Migr
