2012 E&P Investment Plan

BUDGET ALLOCATION

By overhauling the structure of its E&P division, Pemex hopes to create a system that has stronger incentives to conduct exploratory activities, and ensures that assets, once discovered, are fully developed before they are handed over to the production teams. The budget allocation for 2012 under this new plan is detailed below.

EXPLORATION INVESTMENT

Exploration involves searching for hydrocarbons through dierent technical methods, which help to determine the location, size and type of hydrocarbons located in a given area. Once this data has been collected, an exploration well is typically drilled, which confirms the discovery of oil or gas. Subsequent appraisal wells are drilled to better determine the extent of the discovery.

DEVELOPMENT INVESTMENT

Once a field is handed from exploration to development, the priority is to prepare the field for production, requiring an evaluation of the best way to ensure long-term ecient production and maximum recovery, and confirming the extent of the reserves discovered. It also involves the design and construction of the field’s infrastructure. The exact production plan is then created.

PRODUCTION INVESTMENT

After the infrastructure and technology built and installed during the development phase has been tested, the production phase begins. The production division is responsible for maintaining production levels over the life of the project, and responsible for sustainable exploitation of the reserves, and also for secondary or enhanced oil recovery projects to extend the life of the field.