E&P Investment Trends

In 2012, Pemex invested US$2.65 billion (MX$33.16 billion), or 17.1% of the total capital expenditures of Pemex Exploration and Production, in exploration activities, representing a 6.5% increase over the US$2.49 billion (MX$31.16 billion) invested in exploration activities in 2011. In 2012, the company invested US$ 12.85 billion (MX$160.64 billion), or 82.9% of the total capital expenditures for Pemex Exploration and Production, in development activities, which corresponds with a 10.1% increase over the US$11.67 (MX$145.93 billion) invested in development activities the previous year.

The US$2.68 billion (MX$33.50 billion) budgeted for total capital expenditures for exploration activities in 2013 represents a 1.0% increase over the amount invested in exploration activities in 2012. For development activities, Pemex has budgeted US$ 12.85 billion (MX$160.64 billion), which translates into 0.5% increase over the amount that Pemex Exploration and Production invested in development activities in 2012.

In 2014, Pemex expect to invest US$3.77 billion (MX$47.09 billion), or 22.5% of total capital expenditures of Pemex Exploration and Production, in exploration activities. This planned 40.6% increase in exploration investment between 2013 and 2014 is a clear indication of the growing priority given to this activity.

In 2015, exploration investment is scheduled to increase to US$4.32 billion (MX$54.04 billion), which means that exploration activities will represent 29.3% of the total capital expenditures of Pemex Exploration and Production in two years. This corresponds with a 14.8% increase over the amount projected for 2014.

In 2016, Pemex expects to invest US$4.65 billion (MX$58.12 billion), or 35.1% of total capital expenditures of Pemex-Exploration and Production, in exploration activities. This represents a 7.5% increase over the amount projected for 2015 and, more importantly, confirms that investment in Pemex’s exploration program is set to increase by no less than 75.3% between 2012 and 2016.

The capital expenditures of Pemex Exploration and Production have constituted more than 84% of the company’s total capital expenditures in each of the last five years. In 2013, Pemex Exploration and Production’s budgeted capital expenditures constitute 73.6% of that total.