Main Public Tenders

April 2013

Disclaimer 

This presentation shows future projections. These can be made orally or in writing in PEMEX periodic reports to the Comisión Nacional Bancaria y de Valores (CNBV - Mexican Banking and Securities) and to the Securities and Exchange Commission (SEC); in PEMEX annual reports, statements, offering circulars and prospects, also in different published and other written materials, as well as in oral statements made by PEMEX directors or employees.



Words like we “believe”, “hope”, “anticipate”, and similar expressions, identify future projections and reflect PEMEX point of view about future events and financial performance. We could include future projections addressing, among others:   







Exploring and production activities Import and export activities Investment and costs, objectives, incomes and liquidity projections

Results can completely differ from those projected as a result of factors beyond PEMEX control. Such factors could include, without limitation, the following:  Changes in international oil and gas prices  Effects caused by competition  Access limitations to financial resources access on competitive terms  Economical or political issues in Mexico  Energy sector performance and  Regulatory changes Therefore caution should be taken when using future projections. Under any circumstances these statements only referred to the date of presentation and we have no obligation whatsoever to update or revise any of them, whether because of new information, future events, or others. These uncertainties and risks are detailed in most recent version of Pemex Form 20-F, registered before the USA Securities and Exchange Commission (www.sec.gov) and in Pemex Prospect submitted to the Comisión Nacional Bancaria y de Valores (CNBV), available in the Bolsa Mexicana de Valores website (Mexican market – www.bmv.com.mx). Such factors may cause that final results completely differ from any Stock projections.

2

Contents

I.

PEMEX

II.

Investment

III.

Projects by PEMEX Subsidiaries

IV.

Improvements in resources scheduling: example

V.

Improvements in projects definition

VI.

Final remarks

3

Main Public Tenders

PEMEX

4

Organization Board of Directors

Chief Executive Officer National Audit

Legal

Operations

PEMEX Exploration and Production

Office

Administration

PEMEX Refining

Information Technologies and Business Process

Finance

PEMEX Gas and Basic Petrochemicals

PEMEX Petrochemicals

PMI International trading

Mexican Petroleum Institute

5

Organization Corporate Operations Direction

Projects Development

Strategic and Operational Planning

Procurement

Operation’s Strategy and Evaluation

Health, Safety and Environment

System transportation by Pipelines

Suppliers Development and National Content

Maintenance

6

Main Public Tenders

Investment

7

Infrastructure Investment ILLUSTRATIVE PRODUCTION AND DISTRIBUTION INFRASTRUCTURE

Reservoirs with production Exploitation wells Offshore platforms Gas processing centers Gas sweetening plants Cryogenic plants Fractionation plants Condensates sweetening plants Sulfur recovery plants Refining plants Petrochemical complexes Petrochemical plants LPG distribution terminals Storage and distribution Oil products terminals Coast terminals PIPELINE SYSTEM (LENGTH IN KM)

Production zone Refinery

Primary production pipelines Oil pipelines Gas pipelines Oil products pipelines Basic and scondary petrochemicals Other pipelines

Petrochemical Center Gas Processing Center Sales Center Pipeline Marine route

8

Infrastructure Investment • Main project portfolio and activities (2013 – 2017):

Downstream

529

608

731

34,651

Otros Others

Total

11,560

‒ Infrastructure projects include construction, expansion, and modification of fixed assets (excludes maintenance, preservation, and acquisitions). ‒ Downstream investment contemplate a budget of 34,651 MMD includes 49 projects. ‒ Upstream projects consider onshore and offshore infrastructure, which account for 13,441 MMD and 295 facilities. ‒ The portfolio amounts to $48,092 and 344 main projects and facilities.

11,610 9,614

Plantas Plants

New New Nva. 2o.2nd Nvo. Tren Refinery Refinery Refinería de Refinación

Ductos Terminals Pipelines Terminales

Upstream

13,441 1,254

1,492 1,513 5,815

Platforms

3,367

Marine Pipelines

Marine Land Pipelines Land Works Adequations

Total

Estimated Investment in millions of U.S. Dollars

9

Downstream Projects

10

Refining (2013-2017) Estimated

Estimated Investment MMUSD

Project Ultra-Low Sulfur, Diesel Fuel Phase

Project Development Location 2012

2013

2014

2015

2016

Cadereyta Refinery

4,400

6 Refineries

11,610

Hidalgo

2018

3,000

Guanajuato

2018

Storage and Distribution Terminal, Central Mexico

91

Edo. México

Storage and Distribution Terminal, Northern Mexico

62

Tamaulipas

116

Tamaulipas

65

Oaxaca

65

Veracruz

55

Tamaulipas

New Refinery in Tula Salamanca Refinery - Residuals Conversion

Optimization of Madero Refinery Reconfiguration (Procurement and installation of sliding valves, Cd. Madero) Sour Natural Gas Sweetening in Primary I, II and Viscosity Reduction - Girbotol (Salina Cruz Refinery) Optimization of Minatitlán Refinery Reconfiguration (boiler, deaerator and UDA Sater Demineralizer Train) Sour Water Treatment Plant in Madero Refinery Total Bidding & contracting

Rest of System 2017*

Valves Transfer lines

Boiler UDA

19,464 Engineering

EPC bidding and contracting

*The National Refining System is composed of six refineries

EPC

11

Petrochemicals (2013-2017) Estimated

Estimated Investment MMUSD

Project

Project Development Location 2012

2013

2014

2015

2016

CPQ Morelos Cogeneration

229

Morelos

2017

CPQ Cangrejera Cogeneration

229

Veracruz

2017

Aromatics (2nd phase), CPQ Cangrejera

325

Veracruz

233

Morelos

40

Veracruz

49

Morelos

70

Veracruz

157

Veracruz

Expansion of Ethylene Oxide Plant (2nd phase) CPQ Morelos Pyrolysis Ovens from Ethylene Plants CPQ Cangrejera Pyrolysis Ovens from Ethylene Plants CPQ Morelos Optimization of Refrigerated Ethylene Station I/II CPQ Pajaritos Expansion of Styrene Plant, from 150 to 250 MTA CPQ Pajaritos

Total

Engineering bidding and contracting

2017

1,332

Engineering

EPC bidding and contracting

EPC

¿Qué significa CPQ y EPC? 12

Petrochemicals (2013-2017) Estimated

Estimated amount MMUSD

Project

Activities related to Ethylene XXI Project Release System Reconditioning in CPG Cactus Refurbishing and Integration of the Release System Reconditioning to burners in CPG Cd. Pemex Total

Project Development Location 2012

390

Veracruz, Tabasco y Chiapas

38

Chiapas

42**

Tabasco

2013

2014

2015

2016

Revamps Pipelines*

470

*Pipelines will be outsourced **it is considered EPC No. 2 execution only Engineering bidding and contracting

Engineering

EPC bidding and contracting

EPC

13

E&P Platforms (2013-2017) Estimated

Work Development

Estimated Investment MMUSD

Location

Compression Platform Tsimin-A (High Compression)

511

Tsimin-Xux

Compression Platform Litoral-A (Low Compression)

375

Litoral Tabasco

Compression Platform Tsimin-A (Low Compression)

375

Litoral Tabasco

Compression Platform Abk-L

352

Abkatún-Pol Chuc

Compression Platform Abk-M

352

Abkatún-Pol Chuc

Compression Platform Ixtal-C

352

Abkatún-Pol Chuc

Compression Platform Ku-A

352

Ku-Maloob-Zaap

Production Platform Litoral-A

254

Tsimin-Xux

Production Platform PIT-B

233

Ayatsil-Tekel

2018

Power Generation Platform PIT-A

195

Ku-Maloob-Zaap

2018

Total

3,351

Facilities

Engineering bidding and contracting

Engineering

2013

EPC bidding and contracting

2014

2015

2016

2017

2019 2018

2018 2018

EPC

14

E&P Marine Pipelines (2013-2017) Estimated

Work Development

Estimated Investment MMUSD

Location

Procurement and Installation of Umbilicals

162

Lakach

Pipeline for Oil and Gas 36 x 15.3 Km, from Ku-H to Underwater Interconnection (L-6)

66

Ku-Maloob-Zaap

Pipeline for Fuel Gas 8 x 23.5 Km, from PP-Maloob-B to PGPIT-A

63

Ku-Maloob-Zaap

Pipeline for Oil 20 x 49.2 Km, from Underwater Interconnection in KU-A to future Interconnection in PIT

51

Ayatsil-Tekel

Pipeline for Oil 20 x 49 Km, from Akal-J to future Interconnection (L-7)

49

Ayatsil-Tekel

Pipeline for Gas 16 x 6.1 Km, from Abk-N1 to Abk-A

47

Abkatun-Pol Chuc

Pipeline for Gas 16 x 19.9 Km, from PP-Ayatsil-A to CP-KuH (L-13)

47

Ku-Maloob-Zaap

Pipeline for Oil and Gas 24 x 27.8 Km, from Kuil-B to Abk-A

47

Abkatun-Pol Chuc

Facilities

Total Engineering bidding and contracting

2013

2014

2015

2016

2017

532 Engineering

EPC bidding and contracting

EPC

Pemex Goods & Services Demand Forecast 15

PEMEX REFINING – MAIN BIDS

16

Refining - Main Bids Estimated

Ultra-Low Sulfur Project, Diesel Fuel Phase (National Refining System* except Cadereyta) Estimated Investment MM USD

Publication

Awarding

Construction Begins

EPC´s 1st Package 1st stage: Madero, Tula and Salamanca (to supply North border and metropolitan area)

-

Sept 2013

Dic 2013

1Q 2014

EPC´s 2nd Package 1st stage: Minatitlán and Salina Cruz (to supply South and Pacific area)

-

Oct 2013

1Q 2014

1Q 2014

EPC´s 1st Package 2nd stage: Construction of Hydrogen, Sulfur and Sour Water Plants, Madero, Tula and Salamanca refineries

-

Nov 2013

1Q 2014

2Q 2014

EPC´s 2nd Package 2nd stage: Construction of Hydrogen, Sulfur and Sour Water Plants, Minatitlán and Salina Cruz Refineries

-

Dec 2013

1Q 2014

2Q 2014

Project

* The National Refining System is composed of six refineries

17

Refining - Main Bids Estimated

Salamanca Refinery Reconfiguration Project Project Components

Estimated Investment MM USD

Publication

Award

Construction Begins

Enclosing Wall

3.5

2Q 2013

3Q 2013

3Q 2013

Land amelioration, Access Way and Highway Connection

33

2Q 2014

3Q 2014

3Q 2014

Coker, HDNC, Sour Water, Amine Unit

753

1Q 2014

4Q 2014

4Q 2014

H-Oil

63

2Q 2014

4Q 2014

4Q 2014

Hydrogen, Sulfur

362

2Q 2014

4Q 2014

4Q 2014

1,000

4Q 2014

3Q 2015

3Q 2015

Diesel Oil, Reformer

479

4Q 2014

3Q 2015

3Q 2015

Lubricants

292

4Q 2014

3Q 2015

3Q 2015

Catalytic (FCC)

95

3Q 2015

2Q 2016

2Q 2016

Deep cut

125

4Q 2015

2Q 2016

2Q 2016

PIntegration, Auxiliary Services, Buildings, Releases, Residual Water Treatment

18

Refining - Main Bids Estimated

New Refinery Project in Tula, Hgo.

Project Components

Estimated Investment MM USD

Publication

Award

Construction Begins

Engineering Services for the Integral Control and Safety System for the new Refinery in Tula

5

Dec 2012

May 2013

April 2013

Relocation of the transmission lines (400 kv) Tula- Querétaro and Tula Poza Rica in the New Refinery

15

Dec 2012

April 2013

May 2013

Reconditioning of the New Pumping Station Nuevo Teapa for the Oil Pipeline 36“, from Nvo. Teapa to NRT

5

April 2013

June 2013

Aug 2013

Platforms Configuration 1st stage

250

June 2013

Oct 2013

Nov 2013

Construction of Buildings 1st stage

37

June 2013

Oct 2013

Nov 2013

Construction of Access Ways to the new Refinery

25

June 2013

Oct 2013

Nov 2013

Technical support and project control (PMC) for the NRT exterior building finishing phase

60

Jan 2014

April 2014

May 2014

There will be additional bids for the procurement of equipment and pipelines of long term manufacturing in the second half of 2013

19

Refining - Main Bids Estimated

High Profitability Office Projects Estimated Investment MM USD

Publication

Award

Construction Begins

Sulfur Plant Minatitlán

69.4

3Q 2013

4Q 2013

1Q 2014

Sliding Valves Cadereyta

52.7

2Q 2013

3Q 2013

4Q 2013

Sliding Valves Madero

39.3

2Q 2013

3Q 2013

4Q 2013

Reformer Minatitlán

383.4

4Q 2013

1Q 2014

2Q 2014

Boiler and UDA Water Demineralizer Minatitlán

68.9

1Q 2013

2Q 2013

3Q 2013

Madero Sour Water Unit

32.7

1Q 2013

2Q 2013

3Q 2013

Turbogenerator Madero

50

1Q 2013

2Q 2013

3Q 2013

63.4

3Q 2013

4Q 2013

1Q 2014

Project Components

Girbotol Salina Cruz

¿A qué se refieren con Office Projects? 20

Refining - Main Bids Estimated

High Storage Profitability Office Projects Delivery and Distribution 2013-2014

Project

Estimated Investment MM USD

Publication

Awarding date

Construction Begins

Pipeline (multi purpose) 12”Ø X 240.8 km Progreso -Mérida – Leona Vicario, Q.R.

102.2

April 2014

Jul 2014

Aug 2014

Storage and distribution terminal, Península de Yucatán

110.1

April 2014

Jul 2014

Aug 2014

Storage and distribution terminal, Central Region

110.1

April 2014

Jul 2014

Aug 2014

Storage and distribution terminal, Reynosa, Tamaulipas

110.1

April 2014

Jul 2014

Aug 2014

21

PEMEX PETROCHEMICALS – MAIN BIDS

22

Petrochemicals - Main Bids Estimated

Estimated Investment MM USD

Publication

Award

Construction Begins

Reactors

42

2Q 2013

3Q 2013

4Q 2013

Construction work

180

4Q 2014

1Q 2015

2Q 2015

CPQ Morelos Cogeneration

152.4

4Q 2014

2Q 2014

1Q 2015

CPQ Cangrejera Cogeneration

232.9

4Q 2014

2Q 2014

1Q 2015

Project Ethylene XXI Project

23

MAIN BIDDINGS FOR PEMEX GAS & BASIC PETROCHEMICALS 24

Gas & Basic Petrochemicals - Main Bids Estimated

Project

Estimated Investment MM USD

Publication

Award

Construction Begins

34.7

1Q2013 (International Public Bid)

2Q2013

2Q2013

Ethylene XXI Project Liquids Plant Reconditioning in CPG Cactus for Ethylene XXI Interconnection Reconditioning in Process lines for Ethane Gas and Liquefieds handling C2+ Fractionation Plant Reconditioning in CPG Cactus for Ethylene XXI

25

Gas & Basic Petrochemicals - Main Bids Estimated

Project

Estimated Investment MM USD

Publication

Awarding date Qtr/Yr

Construction Begins

62.9

2Q2013

LPI Mixed Contract

3Q 2013

1Q2013

3Q 2013 (Basic engineering, procurement and critical equipment installation start 17.7 MMUSD)

Works related to Ethylene XXI Project Fractionation Plants Reconditioning in Nuevo Pemex for Ethylene XXI Sweetening Plants Reconditioning in CPG Nuevo Pemex for Ethylene XXI Interconnections Construction in Process lines for Ethane Gas handling for Ethylene XXI

Cryogenic 1 Ciudad Pemex Activities related to Ethylene XXI

40.9

1Q2013

26

Gas & Basic Petrochemicals - Main Bids Estimated

Project

Estimated Investment MM USD

Publication

Award

Construction Begins

26.6

2T 2013

2T 2013

1T 2014

Ethylene XXI Project Interconnections Construction in Process lines to receive C2 Gas from the Southeast

27

PEMEX E&P – MAIN BIDS

28

E&P - Main Bids Offshore Pipelines

Projects L-2 OLG PP-Ayatsil-B to PLEM-1 from UFP L-8 OLD Interconnection Sub L-7 to PP- Ayatsil-B Interconnection from 4 and 14 to PLEM, PLEM-1 and PLEM-2 Procurement and Construction of a Pipeline for Oil and Gas 36"Ø X 38 km, from Válvula de Fondo Perdido (VFP) for Platform Xanab-C Interconnection to TMDB, it includes: Interconnection strands 24"Ø x 1.2 km to Xanab-A and 24"Ø x 1.3 km to Yaxche-A

Estimated Investment MM USD

Publication

Construction Begins

Construction Ends

752

Aug 2013

Oct 2013

Oct 2015

241

Apr 2013

Jul 2013

May 2014

Onshore Pipelines Projects Construction of Pipeline for Gas 36" x 27 Km, from La Trinidad to CPG Cactus Pipeline for Oil, 12” x 14 km, from Ex-campamento Ogarrio to CPGLV

Estimated Investment MM USD

Publication

Construction Begins

Construction Ends

148

Jan 2013

Mar 2013

Sep 2014

122

Apr 2013

Jul 2013

Jan 2014

29

E&P - Main Bids Platforms Estimated Investment MM USD

Publication

Construction Begins

Construction Ends

Production Platform PB-Ku-H2

371

Aug 2013

Nov 2013

Feb 2016

Accommodation Platform HA-TSIMIN-A

207

Nov 2013

Feb 2014

Feb 2016

Drilling Platform Tekel-A

167

Nov 2013

Feb 2014

Jan 2017

Transport and installation of the following Platforms: KuB, Zaap-E, PP-Ek-A2, PP-Balam-A, Akal-H2, Akal-GS, HARE-01, and installation of auxiliary structures in the Marine Region of PEP

144

Feb 2013

Jun 2013

April 2014

Accommodation Platform HA-NA-01

141

Sep 2013

Jan 2014

Apr 2015

Transport and installation of the following Platforms: PPAyatsil-A, PP-Ayatsil-B, PP-Ayatsil-C and PP-Ayatsil-D in the Marine Region of PEP

135

Feb 2013

Jun 2013

May 2014

Projects

30

Improvements in resources scheduling: Example 31

Downstream Projects – Contractor Time Requirements ILLUSTRATIVE

Engineering (man-hours) 1,200,000 1,000,000 800,000

Remplazamos “drafting” por “planning”

600,000 400,000 200,000 0

32

Improvements in projects definition 33

Actions for Project Management

Briefly explained below

Strengthen the Institutional System for Projects Development (SIDP, Spanish acronym)

Actions

Enforcement of the Work Breakdown Structure (WBS)

Homologation and improvement of projects monitoring and control procedures

Implementation of a risk and quality management and control methodology

Application of new contracting models

Incorporation of prequalification contractors

34

Project Development In recent years, PEMEX has implemented two systems for projects development, one for industrial transformation projects and another for exploration and production projects: ‒ Pemex Projects Development for industrial transformation for: PEMEX Refining, PEMEX Gas and Basic Petrochemicals and PEMEX Petrochemicals. ‒ Visualization, Conceptualization and Definition (VCD) for PEMEX Exploration and Production projects.

PEMEX PROJECTS DEVELOPMENT Execution phase

Project development Visualization FEL I

Conceptualization FEL II

Definition FEL III

Execution & Monitoring

Evaluation phase Ex-Post Evaluation

Main Characteristics of development phases 

Visualization (FEL I) To ensure strategic consistency and to preliminarily evaluate technicaleconomical feasibility of the investment opportunity.



Conceptualization (FEL II) Select the alternative/scenario of the more feasible project and detail the scope of the project.



Definition (FEL III) Determine the final scope, term and cost of the project and establish execution commitments.

 Project execution is performed as planned.

 Once the project is completed, ex-post evaluation helps  Project monitoring determine if enables to identify objectives were met scope, term and cost and identify best deviations from planned. practices and areas of improvement.

35

PEMEX Law (2008) ILLUSTRATIVE

Contracting process • Considering the economical model, ensure consistency.

Substantive activities

• Contracting guidelines towards value creation.

Economical model • It must evaluate the total project cost, the contracting impact in production and/or in the operative efficiency and the improvement in business profitability. • Incorporate best practices in project definition.

• Define case by case in bidding documents. • Considering internal regulation of project approval and accreditation by Board of Directors.

Contract model • Implementation of new contracting models:

Implementation • Pilots: ‒ New Refinery ‒ Clean Fuels – Diesel in Cadereyta

1. Performance contracts 2. Reimbursable costs 3. Open book convertible to Lump sum

36

Improvements in Project Definition New stages or with important changes regulated by DACs*

Definition of substantive project

Definition of contract model

Issuance of contracting documents

Integration and release of bidding documents

Prequalification

Poposals preparation

Proposals evaluation

Prices discount / negotiation

Allocation / awarding

*DACs – Spanish acronym for: Administrative provisions for contracting procedures

ILLUSTRATIVE

• To start implementing these changes PEMEX is currently: 1. Proposing new general models of contracts

2. Designing schemes and criteria for prequalification

37

New Contracting Mechanisms Performance

• Reservoirs and production are owned by the Nation.

• Payment based on a rate per barrel, plus a partial reimbursement of expenses. Such payment is subject to cash flows generated by the project after taxes.

• Economical model allows to capture the income for the State, and ensures a positive flow to PEMEX and a competitive investment return to the investor. • PEMEX has the option to participate in the consortium.

Reimbursables

• Payment to contractor including

Open book convertible to Lump sum

• Parties start project definition

project costs execution, based on

focused on developing the works and

receipts, plus profits and expenses

service scope to an appropriate level, to establish cost and execution

• The Price is variable within a range.

program.

‒ Contractor may have incentives for minimizing the total cost. ‒ The risk allocation is shared by

the owner and the contractor. ‒ The main risk to the owner is in the decision making. ‒ The main risk to the contractor is in the productivity of its

resources.

• Contractor develops detailed engineering before procurement to complete the scope definition. ‒ Engineering with reimbursable ‒ Costs, equipment and materials volume are reviewed by owner. ‒ Construction structure is previously negotiated

• Project total risk is minimal in practice.

38

Final Remarks

 To fulfill its business plan, PEMEX has a considerable number of projects

to execute during the next five years.  In the last years, PEMEX has developed several initiatives to improve

projects definition in order to achieve its objectives in less time and cost.  Project Planning and Definition in terms of resources, capacities,

strategies, risk, quality, contractors prequalification, among others, have become essential as best practices for PEMEX capital projects.  PEMEX strives to strengthened its engagement with contractors and

suppliers in order to develop long-term partnerships.

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