On July 16, Petróleos Mexicanos (PEMEX) presented its 2019-2023 Business Plan, establishing the strategic path of PEMEX for the next few years.
Under the plan, PEMEX will permit private investment in hydrocarbon production by means of Integrated Services of Exploration and Extraction Agreements (CSIEE) lasting between 15 and 25 years to ensure that the investor receives the payment for the total amount of its expenses with a profit margin.
Under this model, PEMEX holds the rights of assignment and continues to be the operator, paying the investor for its services a variable tariff established in dollars, using a produced hydrocarbon unit to be calculated in accordance with the specific features of each CSIEE, such as risk, required investments, and operative efficiency.
The private investor will perform the activities set forth in the agreement, assuming 100% of the capital expenditure (CAPEX) and operating expenses (OPEX). In addition, the investor assumes part of the production risks and could assume part of the hydrocarbon price risk.
Furthermore, in accordance with the Business Plan, better tax conditions, segregated accounts or trusts management to ensure that the income of the projects cover the fulfillment of contractual obligations, and the possibility of adjusting tariffs due to relevant changes in the hydrocarbon market index, are considered to be included in the agreements.
Originally published August 05, 2019
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