As filed with the Securities and Exchange Commission on April 29, 2022
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 20-F
__________________________
| o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
OR
| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the fiscal year ended December 31, 2021
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
OR
| o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
Date of event requiring this shell company report:
__________
For the transition period fromto
__________ to __________
Commission File Number
0-99
__________________________
PETRÓLEOS MEXICANOS
(Exact name of registrant as specified in its charter)
Mexican Petroleum | United Mexican States | |||||
(Translation of registrant’s name into English) | (Jurisdiction of incorporation or organization) | |||||
Avenida Marina Nacional No. 329
Colonia Verónica Anzures
11300 Ciudad de México,, México
(Address of principal executive offices)
Delia Cristina Arista Hernández
ri@pemex.com
Avenida Marina Nacional No. 329
Torre Ejecutiva,
11300 Ciudad de México,, México
(Name, telephone,
e-mail
and/or facsimile number and address of company contact person)__________________________
Securities registered or to be registered pursuant to Section 12(b) of the Act. None
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
None | N/A | N/A | ||||||||||||
Securities registered or to be registered pursuant to Section 12(g) of the Act. None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Title of Each Class
4.625% Notes due 2023 | |||||||
8.625% Guaranteed Bonds due 2023 | |||||||
4.875% Notes due 2024 | 4.250% Notes due 2025 | ||||||
| 6.875% Notes due 2025 | |||||||
4.500% Notes due 2026 | |||||||
6.490% Notes due 2027 | 5.350% Notes due 2028 | ||||||
9.500% Guaranteed Bonds due 2027 | 8.750% Notes due 2029 | ||||||
| 6.500% Notes due 2029 | 6.840% Notes due 2030 | ||||||
6.625% Guaranteed Bonds due 2035 | |||||||
6.500% Bonds due 2041 | |||||||
6.625% Guaranteed Bonds due 2038 | 6.375% Bonds due 2045 | ||||||
5.500% Bonds due 2044 | 6.750% Bonds due 2047 | ||||||
5.625% Bonds due 2046 | 7.690% Bonds due 2050 | ||||||
6.350% Bonds due 2048 | |||||||
6.950% Bonds due 2060 | |||||||
__________________________
Indicate by check mark if the registrant is a
well-known
seasoned issuer, as defined in Rule 405 of the Securities Act.Yes
oNo x
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
oNo x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
xNo
o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation(§ (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
S-T
Yes
xNo
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule12b-2
of the Exchange Act. (Check one):Large accelerated filer
oAccelerated filer
oNon-accelerated
filerxEmerging growth company
☐If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐o
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Yes oNo x
statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of
incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP o | IFRS as issued by the IASBx | Othero | ||||||||
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17
oItem 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).Yes
oNo
TABLE OF CONTENTS
EXPLANATORY NOTE
Petróleos Mexicanos and its three subsidiary entities, which we refer to as the subsidiary entities, (Pemex Exploration and Production), (Pemex Industrial Transformation) and (Pemex Logistics), comprise the state oil and gas company of the United Mexican States, which we refer to as Mexico. Petróleos Mexicanos is a productive31 and listed in Note 5 to our consolidated financial statements incorporated in Item 18, which we refer to as our subsidiary companies, are incorporated into the consolidated financial statements; these subsidiary companies are also identified with their corresponding ownership percentages in “––Consolidated Structure of PEMEX” on page 3.4. Petróleos Mexicanos, the subsidiary entities and the subsidiary companies are collectively referred to as “PEMEX” or “we.” See “Item“Item 4—Information on the Company—History and Development—Corporate Structure”Structure” for more details.
Pemex Exploración y Producción
Pemex Transformación Industrial
Pemex Logística
state-owned
company of the Federal Government of Mexico, which we refer to as the Mexican Government, and each of the subsidiary entities is a productivestate-owned
subsidiary of Mexico. Each of Petróleos Mexicanos and the subsidiary entities is a legal entity empowered to own property and carry on business in its own name. In addition, a number of subsidiary companies that are defined in Note References herein to “U.S. $,” “$,” “U.S. dollars” or “dollars” arerefers to dollars of the United States dollars.of America. References herein to “pesos” or “Ps.” are to the legal currency of Mexico. References herein to “euros” or “€” are to the legal currency of the European Economic and Monetary Union. References herein to “pounds sterling” or “£” are to the legal currency of the United Kingdom. References herein to “Swiss francs” are to the legal currency of the Swiss Confederation. References herein to “Japanese yen” or “¥” are to the legal currency of Japan. References herein to “Australian dollars” are to the legal currency of Australia. The term “billion” as used herein means one thousand million. Amounts in this annual report are rounded, and the totals may therefore not precisely equal the sum of the numbers presented.
Our consolidated financial statements included in this annual report were prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. We refer in this report to “International Financial Reporting Standards as issued by the International Accounting Standards Board” as IFRS. In addition, these consolidated financial statements were audited in accordance with the International Standards on Auditing, as required by the(Securities (Securities Market Law) and the(General (General Provisions applicable to issuers of securities and other participants in the securities market) in each case, of Mexico, for purposes of filing with the(National (National Banking and Securities Commission, or the CNBV) and the(Mexican (Mexican Stock Exchange), and in accordance with the standards of the Public Company Accounting Oversight Board (United States), or PCAOB, for purposes of filings with the U.S. Securities and Exchange Commission, or the SEC.
Ley del Mercado de Valores
Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes del mercado de valores
Comisión
Nacional Bancaria y de Valores
Bolsa Mexicana de Valores, S.A.B. de C.V.
The regulations of the SEC do not require foreign private issuers that prepare their financial statements on the basis of IFRS to reconcile such financial statements to United States Generally Accepted Accounting Principles, which we refer to as U.S. GAAP. Accordingly, while we have in the past reconciled our consolidated financial statements prepared in accordance with(Mexican Financial Reporting Standards) to U.S. GAAP, those reconciliations are no longer presented in our filings with the SEC. We do, however, continue to provide the disclosure required under the U.S. Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 932 “Extractive Activities—Oil and Gas” (which we refer to as ASC Topic 932), as this is required regardless of the basis of accounting on which we prepare our consolidated financial statements.
Normas de Información Financiera Mexicanas
We maintain our consolidated financial statements and accounting records in pesos. Unless otherwise indicated, we have translated all peso amounts to U.S. dollars in this Form20.583519.4143 = U.S. $1.00, which is the exchange rate that the(Ministry (Ministry of Finance and Public Credit) instructed us to use on December 31, 2021.2022. You should not construe these translations from pesos into dollars as actually representing such U.S. dollar amounts or meaning that you could convert such amounts into U.S. dollars at the rates indicated. Mexico has a free market for foreign exchange, and the Mexican Government allows the peso to float freely against the U.S. dollar. There can be no assurance that the Mexican Government will maintain its current policies with regard to the peso or that the peso will not depreciate or appreciate significantly in the future. Due to the volatility of the peso/U.S. dollar exchange rate, the exchange rate on any date subsequent to the date hereof could be materially different from the rate indicated above.
20-F,
including all convenience translations of our consolidated financial statements included herein, at an exchange rate of Ps. Secretaría de Hacienda y Crédito Público
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PRESENTATION OF INFORMATION CONCERNING RESERVES
The proved hydrocarbon reserves included in this report for the year ended December 31, 2021,2022, are those that we have the right to extract and sell based on assignments granted to us by the Mexican Government.
The estimates of our proved reserves of crude oil and natural gas for the five years ended December 31, 20212022 included in this report have been calculated according to the technical definitions required by the SEC. DeGolyer and MacNaughton Corp. (which we refer to as DeGolyer"DeGolyer and MacNaughton)MacNaughton"), GLJ Ltd. (which we refer to as GLJ)"GLJ"), Ryder Scott Company L.P. (which we refer to as Ryder Scott)"Ryder Scott") and Sproule International Limited and Sproule México, S.A. de C.V. (which we refer to as Sproule)"Sproule") conducted reserves audits of our estimates of our proved hydrocarbon reserves as of December 31, 20212022 or January 1, 2022,2023, as applicable. All reserves estimates involve some degree of uncertainty. For a description of the risks relating to reserves and reserves estimates, see “Item 3—Key Information—Risk Factors—Risk Factors Related to our Relationship with the Mexican Government—Information on Mexico’s hydrocarbonHydrocarbon reserves isare based on estimates, which are uncertain and subject to revisions,” “—We must make significant capital expenditures to maintain our current production levels, and to maintain, as well as increase, the proved hydrocarbon reserves assigned to us by the Mexican Government. Reductions in our income, adjustments to our capital expenditures budget and ouror an inability to obtain financing may limit our ability to make capital investments” and “—The Mexican nation, not us, owns the hydrocarbon reserves located in Mexico and our right to continue to extract these reserves is subject to the approval of the(Ministry (Ministry of Energy or SENER)"SENER").”
Secretaría de Energía
FORWARD-LOOKING
STATEMENTSThis annual report on Form
20-F
contains words, such as “believe,” “expect,” “anticipate” and similar expressions that identifyforward-looking
statements, which reflect our views about future events and financial performance. We have madeforward-looking
statements that address, among other things, our:•exploration and production activities, including drilling;
•activities relating to import, export, refining, transportation, storage and distribution of petrochemicals, petroleum, natural gas and oil products;
•activities relating to our lines of business;
•projected and targeted capital expenditures and other costs;
•trends in international and Mexican crude oil and natural gas prices;
•liquidity and sources of funding, including our ability to continue operating as a going concern;
•farm-outs,
joint ventures and strategic alliances with other companies; and•the monetization of certain of our assets.
Actual results could differ materially from those projected in such
forward-looking
statements as a result of various factors that may be beyond our control. These factors include, but are not limited to:•general economic and business conditions, including changes in international and Mexican crude oil and natural gas prices, refining margins and prevailing exchange rates;
•credit ratings and limitations on our access to sources of financing on competitive terms;
•our ability to find, acquire or gain access to additional reserves and to develop, either on our own or with our strategic partners, the reserves that we obtain successfully;
•the level of financial and other support we receive from the Mexican Government;
COVID-19
pandemic;•the outbreak of military hostilities, including escalating tensions between Russia andan escalation of Russia's invasion of Ukraine and the potential destabilizing effect of such conflict;
•effects on us from competition, including on our ability to hire and retain skilled personnel;
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•uncertainties inherent in making estimates of oil and gas reserves, including recently discovered oil and gas reserves;
•technical difficulties;
•significant developments in the global economy;
•significant economic or political developments in Mexico and the United States;
•developments affecting the energy sector;
•changes in, or failure to comply with, our legal regime or regulatory environment, including with respect to tax, environmental regulations, fraudulent activity, corruption and bribery;
•receipt of governmental approvals, permits and licenses;
•natural disasters, accidents, blockades and acts of sabotage or terrorism;
•the cost and availability of adequate insurance coverage; and
•the effectiveness of our risk management policies and procedures.
Accordingly, you should not place undue reliance on these
forward-looking
statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.For a discussion of important factors that could cause actual results to differ materially from those contained in any
forward-looking
statement, see “Item 3—Key Information—Risk Factors.”CONSOLIDATED STRUCTURE OF PEMEX
The following chart presents the consolidated structure of PEMEX as of December 31, 2022.
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PART I
Item 1. Identity of Directors, Senior Management and Advisers |
Not applicable.
Item 2. Offer Statistics and Expected Timetable |
Not applicable.
Item 3. Key Information
A.Selected Financial Data
Not applicable.
B.Capitalization and Indebtedness
Not applicable.
C.Reasons for the Offer and Use of Proceeds
Not applicable.
D.Risk Factors
Risk Factors Related to Our Operations
We have a substantial amount of indebtedness and other liabilities and are exposed to significant liquidity constraints, which could make it difficult for us to obtain financing on favorable terms and could adversely affect our financial condition, results of operations and ability to repay our debt and, ultimately, our ability to operate as a going concern without additional support from the Mexican Government.Government, which we may not receive.
We have a substantial amount of debt, which we have incurred primarily to finance the capital expenditures needed to carry out our capital investment projects. Due to our heavy tax burden, our cash flow from operations in recent years has not been sufficient to fund our capital expenditures and other expenses and, accordingly, showed a significant increase in our indebtedness, as well as a decrease in our working capital.indebtedness. Therefore, in order to develop our assigned hydrocarbon reserves, service our indebtedness and amortize scheduled debt maturities, we will need to obtain funds from a broad range of sources, in addition to continuing efficiency and cost-cutting initiatives. There can be no assurances that we will continue to have access to capital on favorable terms or any terms at all. During 2021,2022, we received support from the Mexican Government for debt repayments, and such additional support may not be available in upcoming years.
As of December 31, 2021,2022, our total indebtedness, including accrued interest, was Ps. 2,249.72,091.5 billion (U.S. $109.3$107.7 billion), in nominal terms, which represented a 0.4%7.0% decrease in peso terms compared to our total indebtedness, including accrued interest, of Ps. 2,258.72,249.7 billion (U.S. $109.7$115.9 billion) as of December 31, 2020.2021. As of December 31, 2021, 36.8%2022, 38.7% of our existing debt, or Ps. 827.4808.8 billion (U.S. $40.2$41.7 billion), including accrued interest, is scheduled to mature in the next three years, including Ps. 492.3465.9 billion (U.S. $23.9$24.0 billion) scheduled to mature in 2022.2023. Our working capital deterioratedimproved from a negative working capital of Ps. 442.6 billion (U.S. $21.5 billion) as of December 31, 2020 to a negative working capital of Ps. 464.3 billion (U.S. $22.6$23.9 billion) as of December 31, 2021.2021 to a negative working capital of Ps. 401.8 billion (U.S. $20.7 billion) as of December 31, 2022. Our level of debt may increase further in the short or medium term as a result of new financing activities or future depreciation of the peso as compared to the U.S. dollar, and may have an adverse effect on our financial condition, results of operations and liquidity position. To service our debt, we have relied and may continue to rely on a combination of cash flows from our operations, drawdowns under our available credit facilities, capital contributions from the Mexican Government and the incurrence of additional indebtedness (including refinancing of existing indebtedness). During 2021,2022, we received Ps. 202.645.4 billion from the Mexican governmentGovernment in the form of equity contributions to support our debt repayments. These contributions represented one of the main sourcesan important source for the payment of our debt during 2021. In addition, we are taking actions to improve our financial position.2021 and 2022. See “Item“Item 5—Operating and Financial Review and Prospects—Liquidity and Capital Resources—Overview—Changes to Our Business Plan”Plan” for more information.
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If we were unable to obtain financing on favorable terms or any terms at all, this could hamper our ability to invest in projects, financed through debtexploit hydrocarbon reserves, and meet our principal and interest payment obligations with our creditors. This risk would be further magnified if we also were unable to receive additional support from the Mexican government.Government. As a result, we may be exposed to significant liquidity constraints and may not be able to service our debt or make the capital expenditures required to maintain our current production levels and to maintain, and increase, the proved hydrocarbon reserves assigned to us by the Mexican Government, which may adversely affect our financial condition and results of operations. See “—Risk Factors Related to our Relationship with the Mexican Government—We must make significant capital expenditures to maintain our current production levels, and to maintain, as well as increase, the proved hydrocarbon reserves assigned to us by the Mexican Government. Reductions in our income, adjustments to our capital expenditures budget and ouror an inability to obtain financing may limit our ability to make capital investments”investments” below.
If such constraints occur at a time when our cash flow from operations is less than the resources necessary to meet our debt service obligations, in order to provide additional liquidity to our operations,which was the case for the year ended December 31, 2022, we could be forced to further reduce our planned capital expenditures and implement further austerity measures.measures in order to provide additional liquidity to our operations. A reduction in our capital expenditure program could adversely affect our financial condition and results of operations. Additionally, such measures may not be sufficient to permitfor us to meet our obligations.
Our consolidated financial statements have been prepared on the assumption that we will continue as a going concern.
Our consolidated financial statements have been prepared under the assumption that we will continue as a going concern. However, there is material uncertainty that raises significant doubt about our ability to continue operating as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of that uncertainty. If the actions we are taking to improve our financial condition, which are described in detail under “Item“Item 5—Operating and Financial Review and Prospects—Liquidity and Capital Resources—Overview—Changes to Our Business Plan”Plan” are not successful, we may not be able to continue operating as a going concern.
Downgrades in our credit ratings could negatively impact our access to the financial markets and cost of financing.
We rely on access to the financial markets to fund our operations and finance the capital expenditures needed to carry out our capital investment projects. Accordingly, credit ratings are important to our business and financial condition, as credit ratings affect the cost and other terms upon which we are able to obtain funding.
Ratings address our creditworthiness and the likelihood of timely payment of our long-term debt securities. Ratings are not a recommendation to purchase, hold or sell securities and may be changed, suspended or withdrawn at any time. Our current credit ratings and the rating outlooks depend, in part, on economic conditions and other factors that affect credit risk and are outside our control, as well as assessments of the creditworthiness of Mexico.
We currently have a “split rating”"split rating" among the threerating agencies that formally rate our credit profile. Two of themsuch rating agencies have assigned us aone hasthe other two have assigned us an investment grade rating. For information regarding our current credit ratings, please see “Item“Item 5—Liquidity and Capital Resources—Overview.Overview.” While these downgrades do not constitute a default or an event of default under our debt instruments, they have increased our cost of financing. Any further lowering of our credit ratingsFurther downgrades may have material adverse consequences on our ability to access the financial markets and the terms on which we may obtain financing, including our cost of financing. In turn, this could significantly harm our financial condition, results of operations and ability to meet our existing obligations, financial condition and results of operations.obligations. In addition, in connection with the entry into new financings or amendments to existing financing arrangements, our financial and operational flexibility may be reducedimpaired as a result of more restrictive covenants, requirements for security and other terms that may be imposed on split-rated entities. Our split rating and any further credit rating downgrades could also negatively impact the prices of our debt securities, and reduce our potential pool of investors and limit our funding sources, among other consequences. There can be no assurance that we will be able to maintain or improve our current credit ratings or outlook
non-investment
grade rating and .
Crude oil, natural gas and petroleum products prices are volatile, and low crude oil and natural gas prices adversely affect our income and cash flows and the value of the hydrocarbon reserves that we have the right to extract and sell.
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beyond our control. These factors include the following:(i) competition within the oil and natural gas industry, (ii) the pricesexistence and availabilitydevelopment of alternative sources of energy, (iii) prices of alternative sources of energy, (iv) the cost of exploration and exploitation of oil fields, (v) international economic trends, (vi) exchange rate fluctuations, (vii) expectations of inflation, (viii) domestic and foreign laws and government regulations, (ix) political, social and other events (including public health events) in major oiloil- and natural gas producinggas-producing and consuming nations, and(x) actions taken by Organization of the Petroleum Exporting Countries (OPEC)("OPEC") members and other oil exporting countries, (xi) trading activity in oil and natural gas and (xii) transactions in derivative financial instruments (“DFIs”) related to oil and gas.
When international prices of crude oil, petroleum productproducts and/or natural gas prices are low, we generally earn less revenue and, therefore, generate lower cash flows and earn less income before taxes and duties because our costs remain roughly constant. Conversely, when prices of crude oil, petroleum product andproducts and/or natural gas prices are high, we earn more revenue and our income before taxes and duties increases.
Any future decline in international crude oil and natural gas prices will have a similar negative impact on our results of operations and financial condition. ThesePrice fluctuations may also affect estimates of the amount and value of Mexico’s hydrocarbon reserves that we have the right to extract and sell, which could affect our future production levels. See “—“—Risk Factors Related to our Relationship with the Mexican Government—Information on Mexico’s hydrocarbon reserves is based on estimates, which are uncertain and subject to revisions”revisions” below and “Item“Item 11—Quantitative and Qualitative Disclosures About Market Risk—Changes in Exposure to Main Risks—Market Risk—Hydrocarbon Price Risk.”
Public health events, including epidemics and pandemics caused by infectious agents and diseases, such as the world, including Mexico, continue to suffer significant economic and social crises as a result of theongoing COVID-19 pandemic,and measures taken to contain or mitigate it, which have had dramatic adverse consequences on demand, operations, supply chains and financial markets, as well as contributed to significant oil price volatility. While may adversely impact the nature and scope of the consequences to date are difficult to evaluate precisely, and their future course is impossible to predict with confidence, these events may continue for a sustained period of time.
TheCOVID-19pandemic could adversely affect our ability to operate our business in the manner and on the timelines previously planned. The extent towhich COVID-19 impact of current orother future public health pandemics or epidemics may continue to impact Mexico, the Mexican economy and the global economy and, in turn, our business, results of operations and financial conditionevents is highly uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited to:
•the duration, scope, and severity of theCOVID-19pandemic;
any such public health event;•volatility in oil demand and oil prices;
•the impact of travel bans, shelter-in-place orders, or work-from-home policies, orshelter-in-placeorders;
policies;•staffing shortages;
•interest rate and inflation rate volatility;
•general economic, financial, and industry conditions, particularly relating to liquidity and financial performance, which may be amplified by the effects ofCOVID-19; public health events; and
•the long-term effects of the pandemicany such public health event on the nationalMexican and global economy,economies, including on global supply chains, consumer confidence and spending, financial markets and the availability of credit for us, our suppliers and our customers, among others.
Our business could be negatively impacted by hydrocarbon price volatility as the result of, or as a result of the threat of, Russian activities in Ukraineglobal military or paramilitary activity and theany related destabilization of the world energy markets.
Our revenues and our profitability are heavily dependentdepend on the prices we receive from our sales of crude oil, petroleum products and natural gas. Oil prices are particularlyhighly sensitive to actual and perceived threats to global politicalgeopolitical stability and to changes in production from OPEC and
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OPEC+ member states.states and other oil-producing nations. An actual increase, or the threat of an increase, in military or paramilitary activities, including Russian military activities in Ukraine, could lead to increased volatility in global oil and natural gas prices. DestabilizationThe destabilization of or increased volatility in global oil and gas prices could reduce the price we receive from our sales of oil and natural gas and adversely affect our profitability. Increases in oil and gas prices may not persist and could be followed by price decreases based on factors beyond our control, including geopolitical events.
We are an integrated oil and gas company and are exposed to production, equipment and transportation risks, criminal acts, blockades to our facilities and deliberate acts of terror that could adversely affect our business, results of operations and financial condition.
We are subject to several risks that are common among oil and gas companies. These risks include (i) production risks, (fluctuationsincluding fluctuations in production due to operational hazards, accidents at our facilities and effects of natural disasters or weather, accidents at our facilities, etc.),(ii) equipment risks, (relatingincluding those relating to the adequacy, condition and maintenance of our facilities and equipment)equipment and (iii) transportation risks, (relatingincluding those relating to the condition, availability and vulnerability of pipelines and other modes of transportation). More specifically, ourtransportation. Our business is subject to the risks of explosions in pipelines, refineries, plants, drilling wells and other facilities, as well as oil spills, hurricanes in the Gulf of Mexico and other natural or geological disasters and accidents, fires and mechanical failures. For further information related to environmental liabilities, see “Item“Item 4—Information on the Company—Environmental Regulation—Environmental Liabilities.”
Our operations are also subjectexposed to the risk ofrisks arising from criminal acts to steal, divert or tamper with our crude oil, natural gas or refined products from our pipeline network, including the theft, and tampering with the quality, of our products.network. In recent years, we have experienced an increase in the illegal "tapping" of our pipelines and the illegal trade in the fuels that we produce and the illegal “tapping” of our pipelines, whichproduce. Such criminal activity has led to explosions, property and environmental damage, injuries and loss of life, as well as loss of revenue from the stolen product.
products.We are subjectexposed to the risk of cybersecurity incidents, failures and attacks that could adversely affect our business, results of operations and financial condition.
Our operations are supported by ourhighly dependent on information technology systems and therefore, cybersecurity plays a key role in protecting our operations.services. Cyber-threats and cyber-attacks are becoming increasingly sophisticated, coordinated and costly, and could beand have been targeted at our operations or information technology systems. Accordingly, we have an information security policy, in order to help us prevent, detect and correct vulnerabilities. On November 10, 2019, we detected a ransomware cyber-attack that targeted certain computer software applications. Although the cyber-attack did not interrupt the operational continuity of our business, we implemented remedial measures in accordance with our protocols that were intended to contain the extent of the attack and preserve the integrity of our proprietary information. If the integrity of our information technology systems were to be compromised due to another cyber-attack,cyber-attacks, or as the case may be, due to the negligence or misconduct of our employees, our business operations could be disrupted or even paralyzed, and our proprietary information could be loststolen or stolen.lost. If such eventsinformation security failures occur, we could face, among other things, (i) regulatory action, (ii) legal liability, (iii) damage to our reputation, (iv) a significant reduction in revenues, (v) an increase in costs (including costs associated with the recovery of information and assets), (vi) a shutdown of our operations orand (vii) a loss of our investments in areas affected by such cyber-attacks, which in turn could have a material adverse effect on our reputation, results of operations and financial condition.
A continued decline in our proved hydrocarbon reserves and production could adversely affect our operating results and financial condition.
Some of our existing oil and gas producinggas-producing fields are mature and, as a result, our reserves and production may decline as reserves are depleted. In years prior to 2019, the replacement rate for our proved hydrocarbon reserves was insufficient to prevent a decline in our proved reserves. However, during 2019, the trend of previous years was reversed. We achieved a reserve-replacement ratio, or RRR, of 120.1% and 119.7% for 2019 and 2020, respectively. In 2021,2022, our total provedproven reserves had a small increase of 4324.3 million barrels of crude oil equivalent, or 0.6%0.3%, after accounting for discoveries, extensions, revisions, and delimitations, from 7,383.9 million barrels of crude oil equivalent as of December 31, 2020 to 7,426.5 million barrels of crude oil equivalent as of December 31, 2021.2021 to 7,450.8 million barrels of crude oil equivalent as of December 31, 2022. See “Item“Item 4—Information on the Company—Business Overview––Exploration and Production––Reserves”Reserves” for more information about the factors leading to this increase.
Based on these numbers, the RRRour reserve replacement ratio ("RRR") in 20212022 was 105.1%102.8%, a decrease as compared to thea RRR of 119.7%105.1% in 2020. Nevertheless, as a result of the CNH’s final resolution on April 20, 2021 to approve 2020 proved2021. Our proven reserves our proved reserves as of December 31, 2020 increased from 7,383.97,426.5 million barrels of crude oil equivalent as of
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December 31, 2021 to 7,436.57,450.8 million barrels of crude oil equivalent as of December 31, 2022, due to the inclusiondiscoveries, developments, delineations and revisions of finalour proved reserves, from ourContratos de Exploración y Extracción(Exploration and Extraction Contracts, or “CEEs”). As a result, our RRR in 2021 was 98.8%, a decrease from our RRRparticular to the recategorization of 119.7% in 2020. However, ourreserves due to drilling of development wells. Our crude oil production increased by 0.1% and 2.9%1.6% in 2020 and 2021, respectively,2022, primarily as a result of the increase in production in our new offshore field projects Cheek,Esah, Itta, Koban, Mulach, Manik NW, Octli, Pokche, Tlacame, Tlamatini, Tetl, Xolotl, Yaxche,Teca, Teekit Profundo, Uchbal, Xanab, Yaxché and onshore field projects Quesqui, Tupilco Profundo, Quesqui, Cibix, Teotleco and Ixachi. There can be no assurance, however, that we will be able to continue to increase, or otherwise stop or reverse the trend of decline in, our proved reserves and production, which at any time could have an adverse effect on our business, results of operations and financial condition.
Developments in the oil and gas industry and other factors may result in substantial
write-downs
of the carrying amount of certain of our assets, which could adversely affect our operating results and financial condition.We evaluate on an annual basis, or more frequently where the circumstances require, the carrying amount of our assets for possible impairment. Our impairment tests are performed by a comparison of the carrying amount of an individual asset or a cash-generating unit with its recoverable amount. Whenever the recoverable amount of an individual asset or cash-generating unit is less than its carrying amount, an impairment loss is recognized to reduce the carrying amount to the recoverable amount.
Changes in the economic, regulatory, business or political environment in Mexico or other markets where we operate, such as the liberalization of fuel prices or a significant decline in international crude oil and gas prices, among other factors, may result in the recognition of impairment charges in certain of our assets. Due to the decline in oil prices and increases in the discount rates, among others, we have performed impairment tests of(other (other than inventories and deferred taxes) at the end of each quarter. As of December 31, 2019,2022, 2021 and 2020 and 2021, we recognized an impairment charge in the amount of Ps. 31.383.5 billion, Ps. 36.41.2 billion and Ps. 1.236.4 billion, respectively. See Note 13 to our consolidated financial statements for further information about the impairment of certain of our assets. Future developments in the economic environment, in the oil and gas industry and other factors could result in further substantial impairment charges, adversely affecting our operating results and financial condition.
our non-financial assets
Increased competition in the energy sector could adversely affect our business and financial performance.
The Mexican Constitution and the (Hydrocarbons Law) (the "Hydrocarbons Law") allow other oil and gas companies, in addition to us, to carry out certain activities related to the energy sector in Mexico, including exploration and production activities, and the import and sale of gasoline. As a result, we face competition for the right to explore and develop new oil and gas reserves in Mexico. We also face competition in connection with certain refining, transportation and processing activities, as well as the distribution and sale of gasoline and other fuels. Increased competition could make it difficult for us to hire and retain skilled personnel, especially for the sale of gasoline. If we are unable to compete successfully with other oil and gas companies in the energy sector in Mexico, our results of operations and financial condition may be adversely affected.
Ley de Hidrocarburos
We are subject to Mexican and international
anti-corruption,
anti-bribery
andanti-money
laundering laws. Our failure to comply with these laws could result in penalties, which could harm our reputation and have an adverse effect on our business, results of operations and financial condition.We are subject to Mexican and international anti-corruption, anti-bribery and anti-money laundering laws. See “Item“Item 4—Information on the Company—General Regulatory Framework.Framework.” We maintain a corporate compliance program that includes policies and processes intended to complymonitor compliance with these laws, such as our internal control system. Our internal control system aims to prevent risks, anticipate any weaknesses arising infrom our operations or internal control over financial reporting and promote information exchange and communication. However, we are subject to the risk that our management, employees, contractors or any person doing business with us may (i) engage in fraudulent activity, corruption or bribery, (ii) circumvent or override our internal controls and procedures or (iii) misappropriate or manipulate our assets for their personal benefit or of third parties to our detriment. This risk is heightened by the fact thatbecause we have a large number of complex valuableand significant contracts with local and foreign third parties. Although we have systems and internal policies in place for identifying, monitoring and mitigating these risks, such systems and policies have failed in the past and may not be effective in the future. Further, we cannot ensure that these compliance policies and processes will prevent intentional, reckless or negligent acts committed by our management, employees, contractors or any personanyone doing business with us. Any failure—real or perceived—to comply with applicable governance or regulatory obligations by our management, employees, contractors or any person doing
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business with us to comply with applicable governance or regulatory obligations could harm our reputation, limit our ability to obtain financing and otherwise have a material adverse effect on our business, financial condition and results of operations.
If we fail to comply with any applicable anti-corruption, anti-bribery or anti-money laundering laws, we and our management, employees, contractors or any person doing business with us may be subject to criminal, administrative or civil penalties and other measures, which could in turn have material adverse effects on our reputation, business, financial condition and results of operations. Any investigation of potential violations of anti-corruption, anti-bribery or anti-money laundering laws by governmental authorities in Mexico or other jurisdictions could result in an inability to prepare our consolidated financial statements in a timely manner and could adversely impact our reputation, limit our ability to access financial markets and adversely affect our ability to obtain contracts, assignments, permits and other government authorizations necessary to participate in our industry, which, in turn, could have adverse effects on our business, results of operations and financial condition.
Our management has identified material weaknesses in our internal control over financial reporting for fivesix of the last six years and has concluded that our internal control over financial reporting was not effective at December 31, 2021, which may have a material adverse result on our results of operation and financial condition.
Our management identified one material weakness in our internal control over financial reporting in 2021, related to the estimation of impairment of long-lived assets. For further information on the material weakness identified by our management in 2021, see “Item 15—Controls and Procedures—Management’s Annual Report on Internal Control over Financial Reporting.” In light of the identified material weakness, our management concluded that our internal control over financial reporting was not effective at December 31, 2021. Although we are developing and implementing several measures to remedy this material weakness, we cannot be certain that there will be no other material weaknesses in our internal control over financial reporting in the future. In addition, our management identified material weaknesses in our internal control over financial reporting in connection with the preparation of our consolidated financial statements as of and for each of the years ended December 31, 2015, 2016, 2017, 2018, 2020 and 2020.2021. In light of the identified material weaknesses, our management concluded that our internal control over financial reporting was not effective at December 31 of each of those years. We disclosed the circumstances giving rise to these material weaknesses—which were generally different from one year to the next—in our annual reportsremediated, except for the 2021 and 2020 material weaknesses for which we are in the process of implementing the corresponding remediation actions.remediated. For more information, see “Item“Item 15––Controls and Procedures––Management’s Annual Report on Internal Control over Financial Reporting.Reporting.”
on Form 20-F corresponding to
each of those years. As of the date of this annual report, we believe that each of these material weaknesses has been We cannot be certain that additional material weaknesses will not develop or be discovered in the future. There is also a risk that there could be accounting errors in our financial reporting. If our efforts to remediate theany material weaknesses identified in 2021 and 2020weakness are unsuccessful, we may be unable to report our results of operations for future periods accurately and in a timely manner and make our required filings with government authorities, including the SEC. We cannot be certain that additional material weaknesses will not develop or be discovered in the future. There is also a risk that there could be accounting errors in our financial reporting, and we cannot be certain that in the future additional material weaknesses will not exist or otherwise be discovered. Any of these occurrences could adversely affect our results of operation and financial condition.
We participate in strategic alliances, joint ventures and other joint arrangements, which may not perform as expected, could harm our reputation and could have an adverse effect on our business, results of operations and financial condition.
We have not entered into any strategic alliances, joint ventures or other joint arrangements since 2018. However, we continue to participate in prior arrangements entered into before 2018 and currently enter into long-term service contracts for oil production (, (long-term service contracts for oil production, or CSIEEs)"CSIEEs"). These arrangementsCSIEEs are intended to reduce or reallocate risks in oil and gas exploration and production, refining, transportation and processing activities. Our partners in such arrangements may, as a result of financial or other difficulties, be unable or unwilling to fulfill their financial or other obligations under our agreements, threatening the viability of the relevant project. In addition, our partners may have inconsistent or opposing economic or business interests and may take actionact contrary to our policies or objectives, which could be to our overall detriment. If our strategic alliances, joint ventures or other joint arrangements do not perform as expected, our reputation may be harmed and our business, financial condition and results of operations could be adversely affected.
contratos de servicios integrales de exploración y extracción
As of December 31, 20202021 and 2021,2022, we had Ps. 158.8 billion (U.S. $7.7 billion) and Ps. 199.3 billion (U.S. $9.7$10.2 billion) and Ps. 145.7 billion (U.S. $7.5 billion), respectively, of variable rate indebtedness linked to LIBOR orthe London Inter-bank Offered Rate ("LIBOR") and other benchmark rates. In July 2017, the U.K.The Financial Conduct Authority, which regulates LIBOR, announced its intention(the "FCA") in the United Kingdom ceased compelling banks to phase outsubmit rates for the usecalculation of LIBOR byin 2021. In response, the endFederal Reserve Board and the Federal Reserve Bank of 2021. However,New York organized the Alternative Reference Rates Committee which identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to LIBOR in financial contracts. In November 2020, the ICE Benchmark Administration Limited, (“ICE”) announced an extensionthe benchmark administrator for USD-LIBOR rates, proposed extending the publication of the most common dollar LIBOR rates tocertain commonly-used USD-LIBOR settings until June 2023. Other regulators have suggested reforming or replacing other benchmark rates. However, the phase out of LIBOR30, 2023 and the discontinuation, reformFCA issued a statement supporting such proposal. It is not possible to predict the effect of these changes, including when LIBOR will cease to be available or replacementwhen there will be sufficient liquidity in the SOFR markets. Given that we have outstanding debt with variable rates that are indexed to
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LIBOR, the transition of our existing LIBOR financing agreements to alternative benchmarks may have an important impact on, or cause disruptionresult in unanticipated changes to the broader financial markets or borrowing costs to borrowers. These developmentsoverall interest rate paid on our liabilities, which may in turn increase the cost of our variable rate indebtedness or otherwise have an adverse effect on our results of operations and financial condition.
Risk Factors Related to our Relationship with the Mexican Government
The Mexican Government controls us, and it could transfer or reorganize our assets, or may otherwise limit our ability to satisfy our external debt obligations or could reorganize or transfer us or our assets.obligations.
We are controlled by the Mexican Government and our annual budget may be adjusted by the Mexican Government in certain respects. Pursuant to the Petróleos Mexicanos Law, Petróleos Mexicanos was transformed from a decentralized public entity to a productive state-owned company on October 7, 2014. The Petróleos Mexicanos Law establishes a special regime governing, among other things, our budget, debt levels, administrative liabilities, acquisitions, leases, services and public works. This special regime provides Petróleos Mexicanos with additional technical and managerial autonomy and, subject to certain restrictions, with additional autonomy with respect to our budget. Notwithstanding this increased autonomy, the Mexican Government still controls us and, subject to the approval of the Chamber of Deputies, has the power to adjust our financial balance goal, which represents our targeted net cash flow for the fiscal year based on our projected revenues and expenses, andas well as our annual wage and salary expenditures, subject to the approval of the Chamber of Deputies.
expenditures.The Mexican Government’s agreements with international creditors may affect our external debt obligations. In certain past debt restructurings of the Mexican Government, Petróleos Mexicanos’our external indebtedness was treated on the same terms as the debt of the Mexican Government and other public-sector entities, and it may be treated on similar terms in any future debt restructuring. In addition, Mexico has entered into agreements with official bilateral creditors to reschedule public-sector external debt. MexicoThe Mexican Government has not requested restructuring of bonds or debt owed to multilateral agencies.
Our financingfinancial obligations are not guaranteed by the Mexican Government.
Although Petróleos Mexicanos iswe are wholly owned by the Mexican Government, our financingfinancial obligations do not constitute obligations of, and are not guaranteed by, the Mexican Government. As a result,Accordingly, the Mexican Government would havehas no legal obligation to make principal or interest payments on our debt, nor would any such obligation arise if we were unable to satisfyservice our financial obligations.
The Mexican Government may cease to support our debt service obligations.
The Mexican Government has made equity contributions to us of Ps. 202.6Ps.45.4 billion in 20212022 to support our debt service obligations, and announced that it intends to make additional contributions to support our debt service obligations in 2022.obligations. Given that the Mexican Government is not obligated, legally or contractually obligated to make such capital contributions to us, or assist us in repaying our debt, it may cease to provide such support at any time. Any change in the Mexican Government’s support of our debt service obligations, including as a result of liquidity constraints couldor a change in policy objectives, would likely have a material adverse effect on our financial condition and ability to repay our indebtedness, as well as on the market value of our debt securities.
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We pay significant taxes and duties to the Mexican Government, and, if certain conditions are met, we may be required to pay a state dividend, which may limit our capacity to expand our investment program or negatively impact our financial condition generally.
We are required to make significant payments to the Mexican Government, including in the form of taxes and duties, which may limit our ability to make capital investments. For the year ended December 31, 2021,2022, our total taxes and duties were Ps. 395.9457.0 billion, or 26.5%19.2% of our sales revenues in the form of taxes and duties, which constituted a substantial portion of the Mexican Government’s revenues. On April 21, 2020,Although in the past the Mexican Government through a presidential decree,has from time to time granted us a reduction in our tax burden equal to Ps. 65.0 billion for 2020 via a tax credit applicable to the (Profit-sharing (Profit-Sharing Duty or “DUC”). On February 19, 2021,, there can be no assurance that it will do so in the future. For more information, see “Item 4—Information on the Company—Taxes, Duties and Other Payments to the Mexican Government, through a presidential decree, granted us a reduction in our tax burden equal to Ps. 73.3 billion for 2021 via a tax credit applicable to the Profit-sharing Duty. As of December 31, 2021, the full amount of the tax credit was applied.Government—Fiscal Regime." As of January 1, 2022, 20212023, and 2020,2022, the applicable rate of this dutythe DUC was 40%, which represents a decrease from the rate of 54% and 58%, respectively.as of December 31, 2021.
Derecho por la Utilidad Compartida
In addition, we are generally required, subject to the conditions set forth in the Petróleos Mexicanos Law, to pay a state dividend to the Mexican Government. We were not required to pay a state dividend from 20172016 through 2021,2022, and we will not be required to pay a state dividend in 2022.2023. See “Item“Item 8—Financial Information—Dividends”Dividends” for more information. Although the Mexican Government has on occasion indicated a willingness to reduce its reliance on payments made by us, and recent changes to the fiscal regime applicable to us are designed in part to reduce such reliance by the Mexican Government, we cannot provide any assurances that we will not be required to continue to pay a large proportion of our sales revenue to the Mexican Government. See “Item“Item 4—Information on the Company—Taxes, Duties and Other Payments to the Mexican Government—Fiscal Regime.Regime.” In addition, the Mexican Government may change the applicable rules in the future.
The Mexican Government has enteredcould enter into agreements with other nations to limit production.
Although Mexico is not a member of OPEC, it from time to time it enters into agreements with OPECoil supply. During 2021, the average crude oil production (including condensates and not including production from partners) reached 1,735.7 thousand barrels per day. Crude oil production for the year ended December 31, 2021 (including production from partners) averaged 1,756.0 thousand barrels per day.oil. We do not control the Mexican Government’s international affairs and the Mexican Government could enter into further agreements with OPEC, OPEC+ or other countries to reduce our crude oil production or exports in the future. A reduction in our oil production or exports may have an adverse effect on our business, results of operations and financial condition. For more information, see “Item“Item 4—Trade Regulation, Export Agreements and Production Agreements.Agreements.”
and non-OPEC countries
to reduce the global supply of crude The Mexican nation, not us, owns the hydrocarbon reserves located in Mexico and our right to continue to extract these reserves is subject to the approval of the Secretaría de Energía (MinistryMinistry of Energy or SENER).Energy.
The Mexican Constitution provides that the Mexican nation, not us, owns all petroleum and other hydrocarbon reserves located in the subsoil in Mexico.Mexican territory. Article 27 of the Mexican Constitution provides that the Mexican Government will carry out exploration and production activities through agreements with third parties and through assignments to and agreements with us. We and other oil and gas companies are allowed to explore and extract the petroleum and other hydrocarbon reserves located in Mexico, subject to assignment of rights by the SENERMinistry of Energy and entry into agreements pursuant to a competitive bidding process.
Access to crude oil and natural gas reserves is essential to an oil and gas company’s sustained production and generation of income, and our ability to generate income would be materially and adversely affected if the Mexican Government were to restrict or prevent us from exploring or extracting any of the crude oil and natural gas reserves that it has assigned to us, or if we are unable to compete effectively with other oil and gas companies in future bidding rounds for additional exploration and production rights in Mexico. For more information, see “—Risk Factors Related to our Relationship with the Mexican Government—We must make significant capital expenditures to maintain our current production levels, and to maintain, as well as increase, the proved hydrocarbon reserves assigned to us by the Mexican Government. Reductions in our income, adjustments to our capital expenditures budget and ouror an inability to obtain financing may limit our ability to make capital investments”investments” below.
The information on oil, gas and other reserves set forth in this annual report is based on estimates. Reserves valuation is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact manner; the accuracy of any reserves estimate depends on the quality and reliability of available data, engineering and geological interpretation and subjective judgment.
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Additionally, estimates may be revised based on subsequent results of drilling, testing and production. These estimates are also subject to certain adjustments based on changes in variables, including crude oil prices. Therefore, proved reserves estimates may differ materially from the ultimately recoverable quantities of crude oil and natural gas. Downward revisions in our reserve estimates could lead to lower future production, which could have an adverse effect on our results of operations and financial condition. See “—Risk Factors Related to Ourour Operations—Crude oil, natural gas and petroleum productproducts prices are volatile, and low crude oil and natural gas prices adversely affect our income and cash flows and the amountvalue of the hydrocarbon reserves that we have the right to extract and sell”sell” above. We revise annually our hydrocarbon reserve estimates of hydrocarbon reserves that we are entitled to extract and sell,annually, which may result in material revisions to these estimates.estimates contained in this annual report. Our ability to maintain our long-term growth objectives for oil production depends on our ability to successfully develop our reserves, and failure to do so could prevent us from achieving our long-term goals for growth in production.
The(National Hydrocarbon (National Hydrocarbons Commission, or CNH)"CNH") has the authority to review and approve our estimated hydrocarbon reserves estimates and may require us to make adjustments toadjust these estimates. A request to adjust these hydrocarbon reserves estimates could result in our inability to prepare our consolidated financial statements in a timely manner. This could adversely impact our ability to access financial markets and obtain contracts, assignments, permits and other government authorizations necessary to participate in the crude oil and natural gas industry, which, in turn, could have an adverse effect on our business, results of operations and financial condition.
Comisión Nacional de Hidrocarburos
We must make significant capital expenditures to maintain our current production levels, and to maintain, as well as increase, the proved hydrocarbon reserves assigned to us by the Mexican Government. Reductions in our income, adjustments to our capital expenditures budget and ouror an inability to obtain financing may limit our ability to make capital investments.
Because our ability to maintain, as well as increase, our oil production levels is highly dependent uponon our ability to successfully develop existing hydrocarbon reserves and, in the long term, uponon our ability to obtain the right to develop additional reserves, we continually invest capital to enhance our hydrocarbon recovery ratiofactor and improve the reliability and productivity of our infrastructure. The development of the reserves that were assigned to us by the Mexican Government will demanddemands significant capital investments and will poseposes significant operational challenges. Our right to develop thesuch reserves assigned to us is conditioned onupon our ability to develop such reserves in accordance with our development plans, which were based on our technical, financial and operational capabilities at the time.time such reserves were assigned. We cannot provide assurances that we will have, or will be able to obtain, in the time frame that we expect or at all, sufficient resources or the technical capacity necessary to explore and extract the reserves that the Mexican Government assigned to us or the reserves that itthe Mexican Government may grantassign to us in the future. In the past, we have reduced our capital expenditures in response to declining oil prices, and unless we are able to increase our capital expenditures, we may not be able to develop the reserves assigned to us in accordance with our development plans. We wouldIf we fail to develop the reserves assigned to us in accordance with our development plans, we could lose the right to continue to extract thesesuch reserves, if we fail to develop themwhich could in accordance with our development plans, which couldturn adversely affect our operating results and financial condition.
In addition, we have entered into strategic alliances, joint ventures and other joint arrangements with third parties in order to develop our reserves. If our partners were to significantly default on their obligations to us, we may be unable to maintain production levels or extract from our reserves. Moreover, we cannot assure you that these strategic alliances, joint ventures and other joint arrangements will be successful or reduce our capital commitments. For more information, see “—“—Risk Factors Related to Our Operations—We participate in strategic alliances, joint ventures and other joint arrangements. These types of arrangements, which may not perform as expected, which could harm our reputation and could have an adverse effect on our
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business, results of operations and financial condition”condition” above and “Item“Item 4—Information on the Company—History and Development—Capital Expenditures.Expenditures.”
The Mexican Government has historically imposed price controls in the domestic market on our products.
The Mexican Government has from time to time imposed price controls on the sales of natural gas, liquefied petroleum gas, gasoline, diesel, gas oil intended for domestic use, fuel oil and other products. As a result of these price controls, we have not been able to pass on all of the increases in the prices of our product purchases to our customers in the domestic market when the peso depreciates in relation to the U.S. dollar. A depreciation of the peso increases our cost of imported oil and gas products, without a corresponding increase in our revenues unless we are able to increase the price at which we sell products in Mexico.
In accordance with the (2017 Federal Revenue Law), during 2017, the Mexican Government gradually removed price controls on gasoline and diesel as part of the liberalization of fuel prices in Mexico. As of the date of this annual report, sales prices of gasoline and diesel have beenremain fully liberalized and are determined by the free market. For more information, see “Item“Item 4—Information on the Company— Business Overview—Industrial Transformation.Transformation.” However, we do not control the Mexican Government’s domestic policies and the Mexican Government could impose additional price controls on the domestic market in the future. The imposition of such price controls would adversely affect our results of operations. For more information, see “Item“Item 4—Information on the Company—Business Overview—Refining—Pricing Regulations.Regulations.”
Ley de Ingresos de la Federación para el Ejercicio Fiscal de 2017
We may claim some immunities under the Foreign Sovereign Immunities Act and Mexican law, and your ability to sue or recover may be limited.
We are public-sector entities of the Mexican Government. Accordingly, you may not be able to obtain a judgment in a U.S. court against us unless thesuch U.S. court determines that we are not entitled to sovereign immunity with respect to that action. Under certain circumstances, Mexican law may limit your ability to enforce judgments against us in the courts of Mexico.Mexican courts. We also do not know whether Mexican courts would enforce judgments of U.S. courts based on the civil liability provisions of the U.S. federal securities laws. Therefore, even if you were able to obtain a U.S. judgment against us, you might not be able to obtain a judgment in Mexico that is based on thatsuch U.S. judgment. Moreover, you may not be able to enforce a judgment against our property in the United States except under the limited circumstances specified in the Foreign Sovereign Immunities Act of 1976, as amended. Finally, if you were to bring an action in Mexico seeking to enforce our obligations under any securities issued by Petróleos Mexicanos,us, satisfaction of thosesuch obligations may be made in pesos, pursuant to the laws of Mexico.
Our directors and officers, as well as some of the experts named in this annual report, reside outside the United States. Substantially all of our assets and those of most of our directors, officers and experts are located outside the United States. As a result, investors may not be able to effect service of process on our directors or officers or those experts within the United States.
Risk Factors Related to Mexico
Economic conditions and government policies in Mexico and elsewhere may have a material impact on our operations.
A deterioration in Mexico’s economic condition, social instability, political unrest or other adverse social
developments in Mexico could adversely affect our business and financial condition. Such events could also lead to
increased volatility in the foreign exchange and financial markets, thereby affecting our ability to obtain new financing on
favorable terms or at all and service our debt. In the past, the Mexican Government has implemented budget cuts in
response to declines in international crude oil prices and global economic conditions and it may reduce our budget in the
future. Any new budget cuts could adversely affect the Mexican economy and, consequently, our business, results of
operations and financial condition. See “Risk Factors—Risk Factors Related to our Relationship with the Mexican
Government—The Mexican Government controls us, could transfer or reorganize our assets, or may otherwise limit our
ability to satisfy our external debt obligations” above.
Mexico has experienced periods of slow or negative economic growth, high inflation, high interest rates, currency
devaluation and other economic problems. These problems may worsen and could adversely affect our financial condition,
as well as our ability to service our debt in the absence of additional support from the Mexican Government. A
deterioration in international financial or economic conditions, such as a slowdown in growth or recessionary conditions in
Mexico’s trading partners, including the United States, or the emergence of a new financial crisis, could have adverse
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effects on the Mexican economy, our financial condition and our ability to service our debt, including by adversely affecting the Mexican Government’s ability to support us. Mexico has experienced a period of heightened criminal activity, which could affect our operations. In recent years, Mexico has experienced a period of heightened criminal activity, primarily due to the activities of drug cartels and related criminal organizations. In addition, the development of the illicit market in fuels in Mexico has led to heightened theft and illegal trade in the fuels that we produce. In response, the Mexican Government has implemented various security measures and has strengthened its military and police forces, and we have established various strategic measures aimed at decreasing incidents of theft and other criminal activity directed at our facilities and products. See “Item 8—Financial Information—Legal Proceedings—Actions Against the Illicit Market in Fuels.” Despite these efforts, criminal activity continues to exist in Mexico and is likely to continue. Criminal activities and the damage to human life and property associated with them may negatively impact our business continuity, financial condition and results of operations. Economic and political developments in Mexico may adversely affect Mexican economic policy and, in turn, our operations. Political events in Mexico may significantly affect Mexican economic policy and, consequently, our operations. The current administration and the Mexican Congress have the power to revise the legal framework that governs us. We cannot predict how any future policies could impact our results of operations and financial position, nor can we provide any assurances that political developments in Mexico will not have an adverse effect on the Mexican economy, the Mexican oil and gas industry or on our business, results of operations, financial condition and ability to repay our debt. Economic and political developments in the United States may adversely affect Mexican economic policy and, in turn, our operations. Economic conditions in Mexico are highly correlated with economic conditions in the United States due to the physical proximity and the high degree of economic activity between the two countries. As a result, political developments in the United States, including changes in the American administration and governmental policies, can also have an impact on the exchange rate between the U.S. dollar and the Mexican peso, economic conditions in Mexico and the global capital markets. In addition, because the Mexican economy is heavily influenced by the U.S. economy, policies that may be adopted by the U.S. government that are unfavorable to Mexico may adversely affect economic conditions in Mexico. During 2022, our export sales to the United States amounted to Ps. 847,736 million, representing 35.6% of total sales and 79.0% of export sales for the year. Beginning in 2003 under the North American Free Trade Agreement (“NAFTA”), exports of petrochemical products from Mexico to the United States have enjoyed a zero-tariff and, subject to limited exceptions, exports of crude oil and petroleum products have also been free or exempt from tariffs. On November 30, 2018, the Presidents of Mexico and the United States and the Prime Minister of Canada signed the United States-Mexico-Canada Agreement (the “USMCA”). The USMCA came into force on July 1, 2020 and replaced NAFTA. While the USMCA provides that exports of petrochemical products from Mexico to the United States will continue to enjoy a zero-tariff rate, any future shift in the trade relationships between Mexico, the United States and Canada could require us to renegotiate our contracts or lose business, resulting in a material adverse impact on our business and results of operations. The macroeconomic environment in which we operate is beyond our control and the future economic environment may be less favorable than in recent years. The risks associated with current and potential changes in the Mexican and United States political environment and economies are significant and could have an adverse effect on our financial condition, results of operations and ability to repay our debt. Changes in Mexico’s exchange control laws may hamper our ability to service our foreign currency debt. The Mexican Government does not currently restrict the ability of Mexican companies or individuals to convert pesos into other currencies. However, we cannot provide assurances that the Mexican Government will maintain its current policies regarding the peso. The Mexican Government has imposed foreign exchange controls in the past and could do so again in the future. If imposed, Mexican Government policies preventing us from exchanging pesos into U.S. dollars could hamper our ability to service our debt, the majority of which is denominated in currencies other than pesos, and other foreign currency obligations. 15 Risk Factors Related to Climate Issues Environmental regulations, including in connection with efforts to address climate change, could result in material adverse effects on our results of operations. A wide range of general and industry-specific Mexican, and, in relation to certain of our assets, United States, federal and state environmental laws and regulations apply to our operations. These laws and regulations are often difficult and costly to comply with and carry substantial penalties in case of noncompliance and may therefore result in adverse operational and financial impacts. This regulatory burden increases our costs because it requires us to make significant capital expenditures and limits our ability to extract hydrocarbons, resulting in lower revenues. For an estimate of our accrued environmental liabilities, see “Item 4—Information on the Company—Environmental Regulation—Environmental Liabilities.” In addition, noncompliance with applicable regulatory requirements may damage our reputation and limit our ability to access financing on favorable terms or at all. In addition, global efforts to address climate change have promoted the adoption of stricter laws and regulations regarding greenhouse gas emissions in an effort to decarbonize the economy and limit global warming. This could result in additional capital requirements in a medium- to long-term horizon to execute projects included in transition plans, in economic losses due to legal liabilities or, ultimately, potential mandatory shutdown of our facilities. Growing international concern over climate change could adversely impact our assets, strategies and results of operations. Climate change exposes our facilities to physical risk from natural catastrophes such as floods, hurricanes, wildfires and droughts, as well as long-term hazards, such as sea level rise and increases in average temperatures. These risks could increase physical damages to our facilities and, in turn, generate economic losses and business interruption. As a result of a transition to a decarbonized economy, we may become subject to climate change mitigation policies, such as carbon taxes and cap-and-trade schemes, which may increase our costs and expenses associated with mitigation strategy implementation and, in turn, adversely affect our financial condition. International agreements, such as the Paris Agreement adopted by the Mexican Government, include commitments to combat climate change and adapt to its effects. Measures taken in response to these commitments could increase our costs and expenses. Additionally, such measures may boost a shift in consumer demand from petroleum-based fuel to lower-carbon alternatives, adversely affecting our operations and financial results. See “Item 4—Environmental Regulation—Climate Change” for more information on the Mexican Government’s current legal and regulatory framework to combat climate change. Our failure to implement a successful transition plan may have several negative impacts, including damage to our reputation and a reduction in our ability to contract with third parties and access to capital on favorable terms or at all. In addition, the path to addressing climate change involves global decarbonization, which could impact our business due to technological changes, such as cheaper renewables making oil-based energy less economical in comparison, reputational risk from bottom-up consumer pressure for sustainable products and market disruptions, such as sharp drops in hydrocarbon product prices. All of these factors may have an adverse effect on our business, results of operations and financial condition. Deficient performance related to environmental, social and governance (ESG) criteria may adversely impact our reputation and could make it difficult for us to access financing, increase the cost of financing, reduce insurance options or increase the cost of insurance. Recently, our financial counterparties, including investors, lenders and insurance companies, have expressed interest in our performance regarding ESG criteria. ESG considerations encompass social challenges such as improving our practices regarding human rights, worker health and protection, fair employment practices and culture of gender equality. ESG also encompasses environmental challenges such as reduction of our emissions of pollutants and enhancement of effluent treatment, hazardous waste management and compliance with admissible water discharge parameters. Finally, in relation to governance, ESG best practices seek to integrate decision-making, risk management and internal control processes. 16 Our failure or inability to meet evolving stakeholder expectations for ESG practices, or the perception of such failure or inability, may harm our reputation and adversely affect our access to financing and insurance on favorable terms or at all. |
Item 4. Information on the Company
HISTORY AND DEVELOPMENT
We are the second largest company in Mexico by revenue according to the June 20212022 edition ofmagazine, and accordingmagazine. According to the November 18, 202117, 2022 issue ofwe were the eleventh2020.2021.
Expansión
Petroleum Intelligence Weekly,
largest crude oil producer and the twentieth largest
oil and gas company in the world based on data from the year
Our executive offices are located at Avenida Marina Nacional No. 329, Colonia Verónica Anzures, 11300, Alcaldía Miguel Hildalgo, Ciudad de México, México. Our telephone number is
(52-55)
9126-8700.In March 1938, President Lázaro Cárdenas del Río nationalized the(Decree (Decree that creates the entity Petróleos Mexicanos), which was published in the Official Gazette of the Federation and took effect on July 20, 1938.
foreign-owned
oil companies that were then operating in Mexico, and the Mexican Congress established Petróleos Mexicanos through theDecreto que crea la Institución Petróleos Mexicanos
Legal Regime
On December 21, 2013, amendments to Articles 25, 27 and 28 of the Mexican Constitution took effect, including transitional articles setting forth the general framework and timeline for implementing legislation relating to the energy sector.
On August 11, 2014, this implementing legislation was published in the Official Gazette of the Federation. The implementing legislation includes nine new laws, of which the following are most relevant to our operations:
•Ley de Petróleos Mexicanos
•Ley de Hidrocarburos
•Ley de Ingresos sobre Hidrocarburos
Together, the Hydrocarbons Law and the Hydrocarbons Revenue Law establish the legal framework for the exploration and production of oil and gas through assignments and contracts, as well as the fiscal regime through which the Mexican Government collects revenues from participants in the Mexican oil and gas industry. The Hydrocarbons Law empowers the SENERMinistry of Energy to determine the appropriate contract model for each area that is subject to a competitive bidding process, while the Ministry of Finance and Public Credit is responsible for determining the economic and fiscal terms of each contract. See “—Taxes, Duties and Other Payments to the Mexican Government—Fiscal Regime”Regime” below in this Item 4. The following arrangements comprise the contractual regime established by the current legal framework for upstream activities:
•licenses, pursuant to which a license holder is entitled to the oil and gas that are extracted from the subsoil;
•production-sharing
contracts, pursuant to which a contractor is entitled to receive a percentage of production;•profit-sharing
contracts, pursuant to which a contractor is entitled to receive a percentage of the profit from the sale of the extracted oil and gas;•service contracts, pursuant to which a contractor would receive cash payments for services performed; and
•service contracts, together with licenses,
production-sharing
contracts andprofit-sharing
contracts are known as the contracts for the exploration and production of oil and gas, collectively referred to as contracts for exploration and production.For midstream and downstream activities, including oil refining and natural gas processing, the Hydrocarbons Law establishes a permit regime that is granted by the SENERMinistry of Energy and the(Energy (Energy Regulatory Commission, or CRE)"CRE"), as applicable. The Hydrocarbons Law also sets forth the process by which entities may apply for these permits. The CRE has issued permits for the retail sale of gasoline and diesel fuel since 2016.
Comisión Reguladora de Energía
Under the Petróleos Mexicanos Law, Petróleos Mexicanos is a productive
state-owned
company, wholly owned by the Mexican Government, and has the corporate purpose of generating economic value and increasing the income of the Mexican nation while adhering to principles of equity, as well as social and environmental responsibility.On December 2, 2014, the special regime provided for in the Petróleos Mexicanos Law, which governs Petróleos Mexicanos’ activities relating to productive(General (General Provisions for Contracting for Petróleos Mexicanos and its Productive
state-owned
subsidiaries, affiliates, compensation, assets, administrative liabilities, budget, debt levels and the state dividend, took effect. On June 10, 2015, theDisposiciones Generales de Contratación para Petróleos Mexicanos y Sus Empresas Productivas Subsidiarias
State-Owned
Subsidiaries) were published in the Official Gazette of the Federation and, on June 11, 2015, the special regime for acquisitions, leases, services and public works became effective.Corporate Structure
As of December 31, 2021,2022, the principal lines of business of the subsidiary entities are as follows:
•Pemex Exploration and Production, formed on June 1, 2015 as a successor toPemex-ExploracióPemex-Exploracióny Producción
(Pemex-Exploration
and Production), explores for, extracts, transports, stores and markets crude oil and natural gas, as well as performs well drilling, termination and repair and related services;•Pemex Logistics, formed on October 1, 2015, provides transportation, storage and related services for crude oil, petroleum products and petrochemicals to us and other companies, through pipelines and maritime and terrestrial means, and provides guard and management services; and
•Pemex Industrial Transformation, formed on November 1, 2015 as a successor ofPemex-RefinacióPemex-RefinaciónPemex-GasPemex-Gas y Petroquímica BásicaPemex-PetroquíPemex-Petroquímica
(Pemex-Refining),
(Pemex-Gas
and Basic Petrochemicals) and(Pemex-Petrochemicals),
refines petroleum products and derivatives; processes natural gas, natural gas liquids, artificial gas and derivatives; engages in industrial petrochemical processes; generates, supplies and trades electric and thermal energy; and commercializes, distributes and trades in methane, ethane and propylene. Pemex Industrial Transformation also commercializes, distributes and trades methane, ethane and propylene, directly or through others and also produces, distributes and trades ammonia and its derivatives and fertilizers.Each of these subsidiary entities is a legal entity empowered to own property and carry on business in its own name and has technical and operational autonomy, subject to the central coordination and strategic direction of Petróleos Mexicanos.
Prior to July 27, 2018,(Pemex (Pemex Cogeneration and Services) operated as an additional productive state-owned subsidiary. On July 13, 2018, the Board of Directors of Petróleos Mexicanos issued the(Declaration (Declaration of Liquidation and Extinction of Pemex Cogeneration and Services), which was published in the Official Gazette of the Federation and became effective on July 27, 2018. As of July 27, 2018, all of the assets, liabilities, rights and obligations of Pemex Cogeneration and Services were automatically assumed by, and transferred to, Pemex Industrial Transformation, and Pemex Industrial Transformation became, as a matter of Mexican law, the successor to Pemex Cogeneration and Services. Pemex Cogeneration and Services was in turn dissolved effective as of July 27, 2018.
Pemex Cogeneración y Servicios
Declaratoria de Liquidación y Extinción de Pemex Cogeneración y Servicios
Prior to July 1, 2019,(Pemex (Pemex Drilling and Services) and(Pemex (Pemex Ethylene) operated as an additional productive state-owned subsidiaries. On July 25, 2019, the Board of Directors of Petróleos Mexicanos issued the (Declaration of Extinction of Pemex Drilling and Services) and the (Declaration of Extinction of Pemex Ethylene), both of which were published in the Official Gazette of the Federation on July 30, 2019 and became effective on July 1, 2019. As of July 1, 2019, all of the assets, liabilities, rights and obligations of Pemex Drilling and Services were assumed by, and transferred to, Pemex Exploration and Production, and Pemex Exploration and Production became, as a matter of Mexican law, the successor to Pemex Drilling and Services. As of July 1, 2019, all of the assets, liabilities, rights and obligations of Pemex Ethylene were assumed by, and transferred to, Pemex Industrial Transformation, and Pemex
Pemex Perforación y Servicios
Pemex Etileno
Declaratoria de Extinción de Pemex Perforación y Servicios
Declaratoria de Extinción de Pemex Etileno
Industrial Transformation became, as a matter of Mexican law, the successor to Pemex Ethylene. Pemex Drilling and Services and Pemex Ethylene were in turn dissolved effective as of July 1, 2019.
Prior to January 1, 2021,(Pemex Fertilizers) operated as an additional productive state-owned subsidiary. On January 12, 2021, the Board of Directors of Petróleos Mexicanos issued the (Declaration of Extinction of Pemex Fertilizers), which was published in the Official Gazette of the Federation on January 27, 2021 and became effective on January 1, 2021. As of January 1, 2021, all of the assets, liabilities, rights and obligations of Pemex Fertilizers were assumed by, and transferred to, Pemex Industrial Transformation, and Pemex Industrial Transformation became, as a matter of Mexican law, the successor to Pemex Fertilizers. Pemex Fertilizers was in turn dissolved effective as of January 1, 2021.
Pemex Fertilizantes
Declaratoria de Extinción de Pemex Fertilizantes
Capital Expenditures
The following table shows our capital expenditures made or expected to be made by each productive state-owned subsidiary, excluding2022.2023. Capital expenditure amounts are derived from our budgetary records, which are prepared on a cash basis. Accordingly, these capital expenditure amounts do not correspond to capital expenditure amounts included in our consolidated financial statements prepared in accordance with IFRS.
non-capitalizable
maintenance, for each of the threeyears ended December 31, 2022, 2021 and 2020 as well as the budget for these expenditures for Capital Expenditures and Budget by Subsidiary
| Year ended December 31, | Budget 2023(1) | |||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||
(millions of pesos)(2) | ||||||||||||||
| Pemex Exploration and Production | Ps. | 161,838 | Ps. | 134,369 | Ps. | 107,149 | Ps. | 239,928 | ||||||
Pemex Industrial Transformation(3) (5) | 37,813 | 22,416 | 11,991 | 29,881 | ||||||||||
| Pemex Logistics | 6,274 | 4,468 | 2,955 | 7,517 | ||||||||||
Pemex Fertilizers(4) | n.a. | n.a. | 175 | n.a. | ||||||||||
Petróleos Mexicanos(3) | 885 | 239 | 205 | 1,477 | ||||||||||
| Total capital expenditures | Ps. | 206,811 | Ps. | 161,492 | Ps. | 122,475 | Ps. | 278,804 | ||||||
_______________
Note: Numbers may not total due to rounding.
n.a.: Not applicable.
(1)Amended budget was authorized on January 31, 2023. The following table doesoriginal budget was published in the Official Gazette of the Federation on November 28, 2022.
(2)Figures are stated in nominal pesos.
(3)Does not include financial investments in the form of equity contributions of (i) Pemex Industrial Transformation to PTI Infraestructura de Desarrollo, S.A. de C.V., for construction of the newOlmeca refinery in Dos Bocas, refinery (2019Paraíso, Tabasco (2020 to 2022)2023); (ii) Pemex Fertilizers (2019 and 2020)(2020) and Pemex Industrial Transformation (2021 and 2022)to 2023) to Pemex Fertilizantes Pacífico, S.A. de C.V.,
Pro-Agroindustria,
S.A. de C.V., and Grupo Fertinal, S.A. de C.V., intended to support and strengthen the fertilizers business; and (iii) Petróleos Mexicanos to Holdings Holanda Services, B.V., and P.M.I. Holdings Petróleos España, S.L., for the acquisition of the Deer Park refinery in 2022.(4)Prior to January 1, 2021, Pemex Fertilizers operated as an additional productive state-owned subsidiary. As of January 1, 2021, Pemex Fertilizers was merged into Pemex Industrial Transformation.
Year ended December 31, | Budget | |||||||||||||||
2021 | 2020 | 2019 | 2022 (1) | |||||||||||||
(millions of pesos) (2) | ||||||||||||||||
Pemex Exploration and Production | Ps. 134,369 | Ps. 107,149 | Ps. 98,763 | Ps. 208,852 | ||||||||||||
Pemex Industrial Transformation (3) | 22,416 | 11,991 | 8,953 | 9,929 | ||||||||||||
Pemex Logistics | 4,468 | 2,955 | 2,118 | 7,456 | ||||||||||||
Pemex Drilling and Services (4) | n.a. | n.a. | 738 | n.a. | ||||||||||||
Pemex Ethylene (5) | n.a. | n.a. | 164 | n.a. | ||||||||||||
Pemex Fertilizers (6) | n.a. | 175 | 203 | n.a. | ||||||||||||
Petróleos Mexicanos (3) | 239 | 205 | 189 | 854 | ||||||||||||
Total capital expenditures | Ps. 161,492 | Ps. 122,475 | Ps. 111,128 | Ps. 227,091 | ||||||||||||
Source: Petróleos Mexicanos.Mexicanos
The following table shows our capital expenditures, excluding20202022 and 2021 and the budget for these expenditures in 2022.2023.
non-capitalizable
maintenance, by segment for the years ended December 31, Capital Expenditures by Segment
| Year ended December 31, | Budget 2023(1) | ||||||||||
| 2022 | 2021 | ||||||||||
(millions of pesos)(2) | |||||||||||
| Exploration and Production | Ps. | 161,838 | Ps. | 134,369 | Ps. | 239,928 | |||||
| Industrial Transformation | |||||||||||
Refining(3)(4) | 35,672 | 20,594 | 21,438 | ||||||||
| Gas and Aromatics | 1,607 | 1,228 | 3,643 | ||||||||
| Ethylene | 460 | 498 | 1,653 | ||||||||
| Fertilizers | 75 | 96 | 3,148 | ||||||||
| Total | 37,813 | 22,416 | 29,881 | ||||||||
| Logistics | 6,274 | 4,468 | 7,517 | ||||||||
Petróleos Mexicanos (3) | 885 | 239 | 1,477 | ||||||||
| Total Capital Expenditures | Ps. | 206,811 | Ps. | 161,492 | Ps. | 278,804 | |||||
_______________
Year ended December 31, | Budget | |||||||||||
2021 | 2020 | 2022 (1) | ||||||||||
(millions of pesos) (2) | ||||||||||||
Exploration and Production | Ps. 134,369 | Ps. 107,149 | Ps. 208,852 | |||||||||
Industrial Transformation | ||||||||||||
Refining (3) | 20,594 | 10,878 | 4,379 | |||||||||
Gas and Aromatics | 1,228 | 976 | 3,909 | |||||||||
Ethylene | 498 | 137 | 705 | |||||||||
Fertilizers (4) | 96 | n.a. | 936 | |||||||||
Total | 22,416 | 11,991 | 9,929 | |||||||||
Logistics | 4,468 | 2,955 | 7,456 | |||||||||
Fertilizers (4) | n.a. | 175 | n.a. | |||||||||
Petróleos Mexicanos (3) | 239 | 205 | 854 | |||||||||
Total Capital Expenditures | Ps. 161,492 | Ps. 122,475 | Ps. 227,091 | |||||||||
Note: Numbers may not total due to rounding.
(1)Amended budget was authorized on January 31, 2023. The original budget was published in the Official Gazette of the Federation on November 28, 2022.
(2)Figures are stated in nominal pesos.
(3)Does not include financial investments in the form of equity contributions of (i) Pemex Industrial Transformation to PTI Infraestructura de Desarrollo, S.A. de C.V., for construction of the Olmeca refinery in Dos Bocas, Paraíso, Tabasco (2020 to 2023); (ii) Pemex Fertilizers (2020) and Pemex Industrial Transformation (2021 to 2023) to Pemex Fertilizantes Pacífico, S.A. de C.V., Pro-Agroindustria, S.A. de C.V., and Grupo Fertinal, S.A. de C.V., intended to support and strengthen the fertilizers business; and (iii) Petróleos Mexicanos to Holdings Holanda Services, B.V., and P.M.I. Holdings Petróleos España, S.L, for the acquisition of the Deer Park refinery in 2022.
(4) Figures do not include capital expenditures of Deer Park for Ps. 6,050 million (U.S.$ 312 million) in 2022, nor an estimated capital expenditure for 2023 of Ps. 3,970 million (U.S.$ 205 million).
Source: Petróleos Mexicanos.
In addition to the capital expenditureexpenditures budget, the financial investment budget includes equity contributions byfrom the Mexican Government, which are used for the construction of the Olmeca refinery in Dos Bocas, RefineryParaíso, Tabasco by our subsidiary company PTI Infraestructura de Desarrollo, S.A. de C.V. In 2021,Equity contributions from the budget assigned for this purpose amounted to Ps. 45,050 million and actual contributions during 2021 reached Ps. 113,785 million. For 2022, the financial investment budget includes Ps. 45,000 millionMexican Government for the construction of the Dos Bocas Refinery.
Capital Expenditures Budget
Capital expenditures and budget by project,excluding non-capitalized maintenance are described under each segment below in this Item 4.
The weighted average Mexican crude oil export price for 20212022 was U.S. $65.13$ 89.35 per barrel. Based on its estimate that the weighted average Mexican crude oil export price would be U.S. $55.10$ 68.70 per barrel, the Mexican Congress approved a 20222023 budget of Ps. 636.3678.4 billion, including operational expenses, andwith the aim of achieving a zero financial budget deficit of Ps. 62.8 billion.balance. Our management expects that we will be able to maintain our20222023 of Ps. 65.030.0 billion because our financial balance projections consider additional actions, such as implementation of optimization measures and further investment in new projects that we expect will contribute to the generation of increased revenues. TheOur budget was based on the guiding principles of:of (i) maintaining the industrial safety and reliability of our facilities; (ii) consolidating the stabilization of crude oil and gas production levels, increaseincreasing these production levels towards the end of the year and sustain thatsustaining such growth in the medium and long term; increase(iii) increasing the crude processing capacity in the National Refining System; and (iv) meeting our labor and financial obligations.
medium-
andlong-term
growth plans without the need to incur indebtedness beyond the amount included in our approved financing program for On January 31, 20222023, our Board of Directors authorized an amendment to our original 2023 budget, was authorized for 2022, which considers a total investment budget of Ps. 452.4446.8 billion for capital expenditures, includingexpenditures. Our amended budget for 2023 includes Ps. 155.1161.9 billion for70.26.1 billion for financial investment. The financial investment budget includesof which Ps. 45.02.1 billion incorresponds to capital contributions to our subsidiary company PTI Infraestructura de Desarrollo, S.A. de C.V. for the construction of our newthe Olmeca refinery located in Dos Bocas, Paraíso, Tabasco, and Ps. 2.44.0 billion incorresponds to capital contributions to the subsidiaries of our fertilizers business line and $22.7 billion for the acquisition of the Deer Park refinery. Ourbusiness. The net capital expendituresinvestment in the amended budget for 2023 is Ps. 227.1278.8 billion. We expect to directallocate Ps. 208.9239.9 billion (or 92.0%86.1%) of such budget to exploration and production programs in 2022. This investment in exploration and production activities reflects our focus on maximizing the potential of our hydrocarbon reserves and our most productive projects. In addition, in 2022 we expect to direct Ps. 9.929.9 billion (or 4.4%10.7%) to our industrial transformation segment. We continuously review our capital expenditures portfolio in accordance with our current and future business plans, as well as business opportunities.
non-capitalizable
maintenance and Ps. Our main objectives for upstream investment are to maximize our and to increase and improve the quality of the oil and gas reserves assigned to us, enhance Pemex Exploration and Production’s reserves recovery ratio, improve the reliability of its production and transportation infrastructure for crude oil and natural gas operations and continue to emphasizeemphasizing industrial safety and compliance with environmental regulations. Our 2022amended 2023 budget objectives include maintaining crude oil production at levels sufficient to satisfy domestic demand and have a surplus available for export and maintaining natural gas production levels.
long-term
economic value,Our downstream investment program seeks to increase our refining capacity, to improve the quality of our product selection and the reliability of our logistics and distribution services, to achieve a level of efficiency comparable to that of our international competitors and to continue to emphasizeemphasizing industrial safety and environmental compliance.
BUSINESS OVERVIEW
Overview by Business Segment
Exploration and Production
Our exploration and production segment operates through the productive25.420.4 % in 2021.2022. As a result of these investments, our total hydrocarbon production reached a level of approximately 903.1926.1 million barrels of oil equivalent in 2021.2022. Further, our crude oil production increaseincreased by 2.9%1.6% from 20202021 to 2021,2022, averaging 1,735.71,764.2 thousand barrels per day in 2021,2022, primarily as a result of the development of our new offshore fields Cheek,Esah, Itta, Koban, Mulach, Manik NW, Octli, Pokche, Tlacame, Tlamatini, Tetl, Xolotl,Teca, Teekit Profundo, Uchbal, Xanab, Yaxche and onshore field projects Quesqui, Tupilco Profundo, Quesqui, Cibix, Teotleco and Ixachi and workovers, improvements and diversification of artificial systems at our other onshore fields that helped maintain production levels.
state-owned
subsidiary Pemex Exploration and Production and explores for and produces crude oil and natural gas, primarily in the northeastern and southeastern regions of Mexico and offshore in the Gulf of Mexico. In nominal peso terms, our capital expenditures in exploration and production activities increased by Our natural gas production (excluding natural gas liquids) decreased 1.9%increased 0.5% from 20202021 to 2021,2022, averaging 4,670.54,692.8 million cubic feet per day in 2021.2022. This decreaseincrease in natural gas production resultedis primarily fromdue to the decreased volumes in the Cantarell,Ku-Maloob-Zaap,Tsimin-Xux,Crudo Ligero Marino, Cuenca Integral Macuspana yOgarrio-SánchezMagallanesdevelopment of our new offshore fields Koban, Pokche and Cuenca de Burgos projects.onshore field projects Quesqui, Tupilco Profundo, Teotleco and Ixachi. Exploration drilling activity increased by 88.2%21.9% from 20202021 to 2021,2022, from 17 exploratory wells completed in 2020 to 32 exploratory wells completed in 2021.2021 to 39 exploratory wells completed in 2022. Development drilling activity decreasedincreased by 23.5%27.6% from 20202021 to 2021,2022, from 166 development wells completed in 2020 to 127 development wells completed in 2021.2021 to 162 development wells completed in 2022. In 2021,2022, we completed the drilling of 159201 wells in total. In 2021,2022, our exploration drilling activity was focused on the shallow waters of the Gulf of Mexico and onshore regions and the development drilling activity was focused on increasing the production of crude oil and associated gas at new offshore fields Cheek,Esah, Itta, Koban, Mulach, Manik NW, Octli, Pokche, Tlacame, Tlamatini, Tetl, Xolotl,Teca, Teekit Profundo, Uchbal, Xanab, Yaxche and onshore field projects Quesqui, Tupilco Profundo, Quesqui, Cibix, Teotleco and Ixachi.
In advance of 2021,2022, we planned to invest in 3three new developments, oneall of them in shallow water, and two onshore fields.water. We will continue with the development of the other 2427 of the 2629 fields we have been developing during 20192020, 2021 and 2020,2022, since Jaatsul and Hok are no longer included in development. Along 2021,our development plan. In 2022, we incorporated PakiTlalkivak, Camatl, and Akal-NW shallow water fields and Racemosa and Tupilco Profundo onshore fields into our development plan, bringing our total investment in new developments to 2730 fields, 2124 in shallow water, and 6six onshore fields. As of December 31, 2021,2022, we had begun production in 2427 of these 2730 fields. These 2427 fields had an average production of 221.2387.9 thousand barrels per day of crude oil and 567.81,121.3 million cubic feet per day of naturalgas in 2021.
2022.Our primary objectives for 20222023 include: (i) to have hydrocarbon reserves incorporation rates aligned with the production targets; (ii) optimize the portfolio of exploration and production and (iii) increase the reliability safety and operational efficiency of the facilities as well as reduce health risks in the facethrough efficient use of the new normal.resources and development of productive projects. We aim to meet these objectives through the following strategies: (1) increase and accelerate the incorporation of hydrocarbon reserves by
prioritizing our exploration activities onshore, in conventional shallow waters and in adjacent blocks; (2) accelerating secondary and enhanced recovery processes to increase the recovery factor for hydrocarbon reserves in our mature and new fields; (3) expediting the development of newly discovered fields; (4) prioritizing and developing activities that improve the restitution rate of proved reserves;reserves and strengthen the hydrocarbon exploitation portfolio; (5) carry out activities to mitigate the production decline of the oil and gas fields and (6) reduce costs and increase the efficiency of operations in exploration, production and industrial transformation.
Entering 2022,2023, our production goals include producing crude oil at a level of approximately 1,852.61,930.2 thousand barrels per day and maintaining natural gas production above 5,119.94,940.7 million cubic feet per day. We aim to meet these production goals through (a) exploration and development activities, (b) increasing inventory reserves through new discoveries and reclassifications and (c) managing the decline in field production by focusing our exploration and production activities in areas where we have greater experience and higher historical success rates, such as secondary and tertiary recovery systems. In addition, we intend to reallocate resources away from deep-water projects, which tend to be expensive and long-term activities, and towards shallow water and onshore projects, which have the potential for near-term results. We plan to continue the development of twenty seven35 fields in 2022;2023; (i) twenty21 of which, are the fields in shallow waters we began to develop in 2019-2020;2019-2021; (ii) one fieldthree fields in shallow water we began to develop in 2021;2022; (iii) four fields onshore have been in development since 2019, and2019; (iv) two fields onshore we began to develop in 2021.2021, and (v) five onshore fields that we added to our master plan for 2023. We expect that these twenty seven35 fields will be able to produce an aggregate of up to 521594 thousand barrels per day of crude oil per day during 2022.2023.
Industrial Transformation
Our industrial transformation segment is comprised of four principal activities: (i) refining, (ii) gas and aromatics, (iii) ethylene and derivatives and (iv) fertilizers, since January 1, 2021.
Refining
Pemex Industrial Transformation converts crude oil into gasoline, jet fuel, diesel, fuel oil, asphalts and lubricants. We also distribute and market most of these products throughout Mexico. During 2021,2022, atmospheric distillation refining capacity remained stable at 1,640.0 thousand barrels per day.
In 2021,2022, crude oil processing by the National Refining System registered an increase of 20.5%14.6%, from 590.6 thousand barrels per day in 2020 to 711.6 thousand barrels per day in 2021.2021 to 815.8 thousand barrels per day in 2022. Pemex Industrial Transformation produced 722.4833.5 thousand barrels per day of refined products in 2021,2022, a 21.1%15.4% increase as compared to 596.4722.5 thousand barrels per day in 2020.2021. This performance is the result ofresults from the execution of the National Refining System rehabilitation program.
Our primary goals for 20222023 include: (i) continuingcontinue to strengthen the efforts of therefinery operation performance through our National Refining System rehabilitation program, (ii) increasing processing and production levels of gasoline, and diesel and jet fuel, and (iii) improve the occupancy of the National Refining System refineries.
progressing our residual use projects.In addition, in January 2022, we purchased the 50.005% share in Deer Park owned by the Shell Oil Company which, in addition to the 49.995% therefore becoming owner of Deer Park. We look forwardThe purchase of Deer Park is intended to support our goal of strengthening our petroleum products production in order to decrease imports and become self-sufficient in fuelsfuels. Deer Park is considered an operating segment (see Notes 6 and 12 to the Consolidated Financial Statements included in the near future (see Note28-F)this annual report).
Gas and Aromatics
Pemex Industrial Transformation processes wet natural gas to produce dry natural gas, ethane, liquefied petroleum gas (LPG) and other natural gas liquids, along with aromatic derivatives chain products such as toluene, benzene and xylene. In 2021,2022, our total sour natural gas processing capacity remained at 4,523.0 million cubic feet per day.
In 2021,2022, we processed 2,628.22,770.2 million cubic feet per day of wet natural gas of which 2,224.62,392.0 million cubic feet per day were sour wet gas and 403.6378.2 million cubic feet per day were sweet wet gas. This is 5.0% lower5.4% higher than the 2,765.42,628.2 million cubic feet per day we processed in 2020,2021, due to a reduction ingreater availability of sour wet gas process level as a result of lower supply of wet gasin the southeast region from Pemex Exploration and Production.Production, which resulted from a higher gas production from the Quesqui Field of approximately 500 million cubic feet per day.
In 2021,2022, we produced 171.1160.8 thousand barrels per day of natural gas liquids, a 17.5%6.0% decrease as compared to 207.4171.1 thousand barrels per day in 2020.2021. In 2021,2022, we also produced 2,080.32,279.8 million cubic feet per day of dry gas (which is natural gas with a methane content of more than 90.0%), a decreasean increase of 7.3%9.6% compared to the 2,245.22,080.3 million cubic feet per day
produced in 2020.2021. This decreaseincrease is mainly explained by lowerprimarily due to higher gas production in Cactus, Nuevo Pemex Burgos and Poza RicaArenque gas processing complexes by 159.4 million cubic feet per day, 72.6 million cubic feet per day and 5.5 million cubic feet per day, respectively, as a consequenceresult of a lowerhigher supply of wet sour and sweetwet gas by Pemex Exploration and Production. In contrast, gas processing complexes that increased their gas production were: La Venta, Cactus and Ciudad Pemex.
In 2021,2022, we produced 474.6446.3 thousand tons of aromatics and derivatives, an increasea decrease of 41.1%6.0% compared to 336.4474.6 thousand tons in 2020, as a result of the prolonged operative times of2021, due to operational problems in the Catalytic Reforming Cycle unit(CCR) Plant at La Cangrejera petrochemical complex.complex, which resulted in intermittent operations, maintenance work and problems in the supply of auxiliary services.
Our primary goal for 20222023 for this business line will be to performaddress critical risks in the production stages of the gas processing complexes, including the maintenance and rehabilitation of unitsthe production stages to increase process efficiencyrecover dry gas production and increase the recovery of liquefiable products that will allow greater production of dry gas, LPG, ethane and naphtha at gas processing complexes.natural gasoline.
Ethylene and Derivatives
Pemex Industrial Transformation produces, distributes and markets ethane and propylene derivatives. In 2021,2022, we produced a total of 854.6655.7 thousand tons of petrochemical products, a 26.0%26.2% decrease from the 1,154.1888.6 thousand tons of petrochemical products produced in 2020. This decrease was2021, mainly due to operational problemsmajor maintenance work at the ethylene unit of La Cangrejera petrochemical complex, which took place from November 2021 to August 2022. This affected the availability of raw materials for the derivatives unitsplants, resulting in problems within the operation and the supply of auxiliary services. Another factor was the decrease in supply of ethane from the gas processing complexes.
Our ethylene segment leverages the integration of the ethane production chain to manufacture several petrochemical products, including:
•ethane derivatives, such as ethylene, polyethylene, ethylene oxide and glycols;
•propylene and derivatives; and
•other products, including, but not limited to, oxygen, nitrogen, hydrogen and butadiene.
The primary goal for our ethylene and derivatives segment in 20222023 is to continue to take advantage of the installed capacity of its secondary petrochemical units, ensuring their operational reliability to capture the value generated by these chains.
Fertilizers
As of January 1, 2021, Pemex Fertilizers was merged into Pemex Industrial Transformation. Therefore, our fertilizers segment operated through the productive state-owned subsidiary Pemex Fertilizers until December 31, 2020, and operates through the productive state-owned subsidiary Pemex Industrial Transformation as of January 1, 2021 as a line of business.
Our fertilizers business integrates the ammonia production chain. In 2021,2022, the ammonia VI unit in the Cosoleacaque petrochemical complex, reached a production of 646.5745.1 thousand tons, of which 243.9277.8 thousand tons were ammonia, which represents an increase of 107.533.9 thousand tons compared to 2020,2021, as a result of the continuous operation of the unit.unit since February 2022. Carbon dioxide production was 402.6467.3 thousand tons, which represents an increase of 119.964.7 thousand tons as compared to 2020.2021.
For the fertilizer business line in 2022,2023, we will continue to take advantage of the installed capacity of the secondary petrochemical units, ensuringfocusing on their operational reliability to capture the value generated by these chains.
Logistics
Our logistics segment operates through the productive
state-owned
subsidiary Pemex Logistics and provides land, maritime and pipeline transportation, storage and distribution services to some of our subsidiaries and other companies, including Tesoro México Supply & Marketing, S. de R.L. de C.V. (a subsidiary of Marathon Petroleum Corporation), which we refer to as Tesoro, local gas stations and distributors.During 2021,2022, we injected 1,272.91,472.2 thousand barrels per day of crude oil and petroleum products into our pipelines, representing a 11.6%15.7% increase as compared to 20202021 when we injected 1,140.61,272.9 thousand barrels per day, mainly due to higher fuel sales and an increase in demand of pipeline transportation services.crude process in refineries.
During 2021,2022, we injected 125.0116.0 thousand barrels per day of LPG, representing a 6.9%7.2% decrease as compared to the 134.2125.0 thousand barrels per day of LPG injected in 2020,2021, due to a decrease in the requirements of Pemex Industrial Transformation in the terminals and interconnections associated with the pipeline transport system for liquefied petroleum gas. Additionally, we injected 3.15.3 thousand barrels per day of petrochemicals in 2021, a decrease2022, an increase of 18.4%70.9% as compared to the 3.83.1 thousand barrels per day we injected in 2020.2021. This decreaseincrease was mainly due to decreasedincreased demand for isobutane at the Minatitlán and Salina Cruz refineries.
In 2021,2022, we transported a total of 1,952.52,205.5 thousand barrels per day of petroleum products: 1,401.01,593.5 thousand barrels per day (71.8%(72.3%) were injected by pipeline systems, 371.7454.0 thousand barrels per day (19.0%(20.6%) were transported by land and the remaining 179.8158.0 thousand barrels per day (9.2%(7.2%) were transported by tankers.
International Trading
The international trading segment provides us with international trading, distribution, risk management, insurance and transportation services. This segment operates through P.M.I. Comercio Internacional, S.A. de C.V. (which we refer to as PMI), P.M.I. Trading DAC, (which we refer to as P.M.I. Trading), P.M.I. Norteamérica, S.A. de C.V., (which we refer to as
PMI-NASA,
and, together with PMI and P.M.I. Trading, we collectively refer to as the PMI Subsidiaries) and Mex Gas International, S.L. (which, together with the PMI Subsidiaries, we collectively refer to as the Trading Companies). Certain of the Trading Companies sell, buy and transport crude oil, refined products and petrochemicals in world markets, and provide related risk management, insurance, transportation and storage services. The Trading Companies have offices in Mexico City, Houston and Singapore. Export sales are made through PMI to major customers in various foreign markets.In 2021,2022, our crude oil exports decreased in volume by 9.1%6.4%, from 1,119.91,018.3 thousand barrels per day in 20202021 to 1,018.4953.2 thousand barrels per day in 2021.2022. Natural gas imports increaseddecreased by 6.0%41.2% in 2021,2022, from 853.1 million cubic feet per day in 2020 to 904.6 million cubic feet per day in 2021.2021 to 532.1 million cubic feet per day in 2022. In 2021,2022, our exports of petrochemical products increaseddecreased by 174.9%83.4%, from 40.2 thousand metric tons in 2020 to 110.5 thousand metric tons in 2021 to 18.3 thousand metric tons in 2022, and our imports of petrochemical products decreasedincreased by 9.5%7.1%, from 386.0 thousand metric tons in 2020 to 349.2 thousand metric tons in 2021.2021 to 373.9 thousand metric tons in 2022. In 2021,2022, our exports of other petroleum products and liquefied petroleum gas increased by 26.1%18.3%, from 127.1 thousand barrels per day in 2020 to 160.3 thousand barrels per day in 2021 to 189.7 thousand barrels per day in 2022, and our imports of other petroleum products and liquefied petroleum gas increased by 5.0%49.7%, from 197.3208.0 thousand barrels per day in 20202021 to 207.2311.4 thousand barrels per day in 2021.2022. As a major supplier of crude oil to the United States, our international trading segment’s crude oil exports to the United States totaledamounted to U.S.$ 13.620.8 billion in 2021,2022, an increase of U.S. $4.9$7.2 billion with respect to 2020.2021.
Exploration and Production
Exploration and Drilling
We seek to identify new oil reservoirs through our exploration program in order to increase the future replacement rate of proved reserves. From 1990 to 2021,2022, we completed 14,13414,335 exploration and development wells. During 2021,2022, our average success rate for exploratory wells was 53.1%51.3%, a 50.4% increase3.4% decrease as compared to 20202021 and our average success rate for development wells was 99.2%99.4%, a 4.2%0.2% increase as compared 95.2% to 2020. From 2017 to 2021, we discovered 19 new fields.99.2% for 2021. We discovered seven of theseeleven new fields during 2021,2022 bringing the total number of our producing fields to 6,515 at the end of 2021.
326.Our 20212022 exploration program was comprised of exploration in both the onshore regions and the offshore regions in the waters of the Gulf of Mexico. TheseOur exploratory activities yielded 68.089.1 million barrels of oil equivalent of proved reserves resulting from the discovery of seven oil producingeleven oil-producing fields, one new reservoir in an existing field (Niquita) and an extension from the drilling of one appraisal well in an existing field.
field (Valeriana).The following table summarizes our drilling activity for the five years ended December 31, 2021,2022, all of which occurred in Mexican territory.
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019| | 2018 | ||||||||||||||||
Wells initiated(1) | 201 | 159 | 157 | 182 | 166 | |||||||||||||||
Exploratory wells initiated(1) | 39 | 32 | 28 | 32 | 28 | |||||||||||||||
Development wells initiated(1) | 162 | 127 | 129 | 150 | 138 | |||||||||||||||
Wells drilled(2) | 201 | 159 | 183 | 221 | 162 | |||||||||||||||
| Exploratory wells | 39 | 32 | 17 | 23 | 19 | |||||||||||||||
Productive exploratory wells(3) | 20 | 17 | 6 | 12 | 5 | |||||||||||||||
| Dry exploratory wells | 19 | 15 | 11 | 11 | 14 | |||||||||||||||
| Success rate % | 51 | 53 | 35 | 52 | 26 | |||||||||||||||
| Development wells | 162 | 127 | 166 | 198 | 143 | |||||||||||||||
| Productive development wells | 161 | 126 | 158 | 186 | 137 | |||||||||||||||
| Dry development wells | 1 | 1 | 8 | 12 | 6 | |||||||||||||||
Success rate %(4) | 99 | 99 | 95 | 94 | 96 | |||||||||||||||
| Producing wells (annual averages) | 6,501 | 7,767 | 6,326 | 7,400 | 7,671 | |||||||||||||||
| Marine region | 575 | 647 | 517 | 520 | 519 | |||||||||||||||
| Southern region | 760 | 1,150 | 855 | 1,012 | 1,029 | |||||||||||||||
| Northern region | 5,166 | 5,970 | 4,954 | 5,868 | 6,123 | |||||||||||||||
Producing wells (at year end)(5) | 6,501 | 6,515 | 6,303 | 6,945 | 6,946 | |||||||||||||||
| Crude oil | 4,039 | 3,977 | 3,949 | 4,323 | 4,321 | |||||||||||||||
| Natural gas | 2,462 | 2,538 | 2,354 | 2,622 | 2,625 | |||||||||||||||
| Producing fields | 326 | 323 | 313 | 319 | 356 | |||||||||||||||
| Marine region | 61 | 58 | 49 | 43 | 43 | |||||||||||||||
| Southern region | 74 | 74 | 76 | 76 | 83 | |||||||||||||||
| Northern region | 191 | 191 | 188 | 200 | 230 | |||||||||||||||
| Drilling rigs | 82 | 80 | 84 | 84 | 84 | |||||||||||||||
| Kilometers drilled | 730 | 503 | 638 | 646 | 455 | |||||||||||||||
| Average depth by well (meters) | 3,535 | 3,525 | 3,486 | 2,870 | 2,808 | |||||||||||||||
Discovered fields(6) | 11 | 7 | 2 | 3 | 4 | |||||||||||||||
| Crude oil | 11 | 6 | 2 | — | 4 | |||||||||||||||
| Natural gas | — | — | — | — | — | |||||||||||||||
| Gas and condensate | — | 1 | — | 3 | ||||||||||||||||
| Average crude oil and natural gas output by well (barrels of oil equivalent per day) | 386 | 379 | 382 | 327 | 329 | |||||||||||||||
Total developed acreage (km2)(7) (8) | 7,616 | 7,391 | 7,419 | 7,077 | 6,923 | |||||||||||||||
Total undeveloped acreage (km2)(7) (8) | 518 | 695 | 616 | 603 | 607 | |||||||||||||||
_______________
Year ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019| | 2018 | 2017 | ||||||||||||||||
Wells initiated (1) | 159 | 157 | 182 | 166 | 70 | |||||||||||||||
Exploratory wells initiated (1) | 32 | 28 | 32 | 28 | 22 | |||||||||||||||
Development wells initiated (1) | 127 | 129 | 150 | 138 | 48 | |||||||||||||||
Wells drilled (2) | 159 | 183 | 221 | 162 | 79 | |||||||||||||||
Exploratory wells | 32 | 17 | 23 | 19 | 24 | |||||||||||||||
Productive exploratory wells (3) | 17 | 6 | 12 | 5 | 10 | |||||||||||||||
Dry exploratory wells | 15 | 11 | 11 | 14 | 14 | |||||||||||||||
Success rate % | 53.1 | 35 | 52 | 26 | 42 | |||||||||||||||
Development wells | 127 | 166 | 198 | 143 | 54 | |||||||||||||||
Productive development wells | 126 | 158 | 186 | 137 | 50 | |||||||||||||||
Dry development wells | 1 | 8 | 12 | 6 | 4 | |||||||||||||||
Success rate % (4) | 99 | 95 | 94 | 96 | 93 | |||||||||||||||
Producing wells (annual averages) | 7,767 | 6,326 | 7,400 | 7,671 | 6,699 | |||||||||||||||
Marine region | 647 | 517 | 520 | 519 | 443 | |||||||||||||||
Southern region | 1,150 | 855 | 1,012 | 1,029 | 931 | |||||||||||||||
Northern region | 5,970 | 4,954 | 5,868 | 6,123 | 5,325 | |||||||||||||||
Producing wells (at year end) (5) | 6,515 | 6,303 | 6,945 | 6,946 | 8,194 | |||||||||||||||
Crude oil | 3,977 | 3,949 | 4,323 | 4,321 | 4,956 | |||||||||||||||
Natural gas | 2,538 | 2,354 | 2,622 | 2,625 | 3,238 | |||||||||||||||
Producing fields | 323 | 313 | 319 | 356 | 398 | |||||||||||||||
Marine region | 58 | 49 | 43 | 43 | 43 | |||||||||||||||
Southern region | 74 | 76 | 76 | 83 | 91 | |||||||||||||||
Northern region | 191 | 188 | 200 | 230 | 264 | |||||||||||||||
Drilling rigs | 80 | 84 | 84 | 84 | 83 | |||||||||||||||
Kilometers drilled | 503 | 638 | 646 | 455 | 280 | |||||||||||||||
Average depth by well (meters) | 3,525 | 3,486 | 2,870 | 2,808 | 3,639 | |||||||||||||||
Discovered fields (6) | 7 | 2 | 3 | 4 | 3 | |||||||||||||||
Crude oil | 6 | 2 | — | 4 | 1 | |||||||||||||||
Natural gas | — | — | — | — | 2 | |||||||||||||||
Gas and condensate | 1 | — | 3 | — | — | |||||||||||||||
Average crude oil and natural gas output by well (barrels of oil equivalent per day) | 379 | 382 | 327 | 329 | 291 | |||||||||||||||
Total developed acreage (km 2 )(7) | 7,391 | (8) | 7,419 | (8) | 7,077 | (8) | 6,923 | (8) | 6,886 | (8) | ||||||||||
Total undeveloped acreage (km 2 )(7) | 695 | (8) | 616 | (8) | 603 | (8) | 607 | (8) | 620 | (8) | ||||||||||
Note: Numbers may not total due to rounding.
(1)“Wells initiated” refers to the number of wells the drilling of which commenced in a given year, regardless of when the well was or will be completed.
(2)“Wells drilled” refers to the number of wells the drilling of which was completed in a given year, regardless of when the drilling of the well commenced.
(3)Excludes wells abandoned due to mechanical failure.
(4)Excludes injector wells.
(5)Figures include fractional interests obtained pursuant to joint ventures and associations.
(6)Includes: (i) new fields with proved reserves (Actul, Akal NW, Atoyatl, Chucox, Chucox NW, Pokche-NE, Tentok, Tlalkivak, Xanab-SE, Xinich and Zama).
(7)Figures include fractional interests obtained pursuant to joint ventures and associations.
(8)These values relate only to our current assignments.
Source: Pemex Exploration and Production.
Extensions and Discoveries
During 2021,2022, our exploratoryexploration activity in the shallow waters of the Gulf of Mexico and onshore regions resulted in the discovery of six11 new crude oil fields (Tekuani, Tlakati, Chawila, Kuun, Racemosa(Actul, Akal NW, Atoyatl, Chucox, Chucox NW, Pokche-NE, Tentok, Tlalkivak, Xanab-SE, Xinich and Tupilco Profundo)Zama), one new reservoir in existing field (Niquita), and an extension from the drilling of one new gas and condensateappraisal well in existing field (Tum)(Valeriana). In addition, extension activities in our Camatl field led to the incorporation of additional reserves. Together, these extensionsdiscoveries and discoveries ledextension amounted to the incorporation of 68.089.1 million barrels of oil equivalent.equivalent of proved reserves.
Reserves
Under the Mexican Constitution, all oil and other hydrocarbon reserves located in the subsoil of MexicoMexican territory are owned by the Mexican nation and not by us. Pemex Exploration and Production has the right to extract, but does not own, the reserves granted to us by the Mexican Government and to sell the resulting production. As of the date of this annual report, the exploration and development activities of Petróleos Mexicanos and theits subsidiary entities are limited to reserves located in Mexico.
Proved oil and natural gas reserves are those estimated quantities of crude oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations.
Proved reserves estimates as of December 31, 20212022 were prepared by our exploration and production segment and were reviewed by the Independent Engineering Firms (as defined below), which audit the estimates of our oil and gas reserves. Pursuant to the(Guidelines (Guidelines for Regulating the Nation’s Reserves Quantification and Certification Procedures), the CNHNational Hydrocarbons Commission must review the proved reserves reports estimates every year and issue a resolution no later than the second week of April of the following year. However, as of the date of this annual report, the CNHNational Hydrocarbons Commission has not yet issued a resolution with respect to the reserves report as of December 31, 2021.2022. See “Item“Item 3—Key Information—Risk Factors—Risk Factors Related to our Relationship with the Mexican Government— Information on Mexico’s hydrocarbonHydrocarbon reserves isare based on estimates, which are uncertain and subject to revisions.”
Lineamientos que Regulan los Procedimientos de Cuantificación y Certificación de Reservas de la Nación
We estimate reserves based on generally accepted petroleum engineering and evaluation methods and procedures, which are based primarily on applicable SEC regulations and, as necessary, the Society of Petroleum Engineers’ (which we refer to as the SPE) publication entitled Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information, dated June 25, 2019 and other SPE publications, as amended, including the SPE’s publication entitled Petroleum Resources Management System, as well as other technical sources, including Estimation and Classification of Reserves of Crude Oil, Natural Gas, and Condensate, by Chapman Cronquist, and Determination of Oil and Gas Reserves, Petroleum Society Monograph Number 1, published by the Canadian Institute of Mining and Metallurgy & Petroleum. The choice of method or combination of methods employed in the analysis of each reservoir is determined by:
•experience in the area;
•stage of development;
•quality and completeness of basic data; and
•production and pressure histories.
Reserves data set forth herein represent only estimates. Reserves valuation is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact manner. The accuracy of any reserves estimate depends on the quality of available data, engineering and geological interpretation and professional judgment. As a result, estimates of different engineers may vary. In addition, the results of drilling, testing and producing subsequent to the date of an estimate may lead to the revision of an estimate. See “Item“Item 3—Key Information—Risk Factors”Factors—Risk Factors Related to our Relationship with the Mexican Government— Hydrocarbon reserves are based on estimates, which are uncertain and subject to revisions.”
During 2021,2022, we did not record any material increase in our proved oil and gas reserves as a result of the use of new technologies.
In order to ensure the reliability of our reserves estimation efforts, we have undertaken the internal certification of our estimates of reserves since 1996. We have established certain internal controls in connection with the preparation of our proved reserves estimates. Initially, teams of geoscientists from our exploration and production business units (with each of these units covering several projects) prepare the reserves estimates, using distinct estimation processes for valuations relating to new discoveries and developed fields, respectively. Subsequently, the regional reserves offices collect these reserves estimates from the units and request that the(Office (Office of Certification of Hydrocarbon Reserves), the central hydrocarbon reserves management body of Pemex Exploration and Production, review and certify such valuations and the booking of the related reserves. This internal certification process is undertaken in accordance with internal guidelines for estimating and classifying proved reserves, which are based on the SEC’s rules and definitions. The Office of Certification of Hydrocarbon Reserves, which additionallyalso oversees and conducts an internal audit of the process described above, consists entirely of professionals with geological, geophysical, petrophysical and reservoir engineering backgrounds. Additionally, the engineers who participate in our reserves estimation process are experienced in: reservoir numerical simulation; well drilling and completion; pressure, volume and temperature (PVT) and analytical tools used in forecasting the performance of the various elements comprising the production system; and design strategies in petroleum field development. Furthermore, all of our personnel have been certified by the(Ministry (Ministry of Public Education), most have earned master’s degrees in areas of study such as petroleum engineering, geology and geophysical engineering and they possess an average of over fifteen15 years of professional experience.
Gerencia de Certificación de Reservas de Hidrocarburos
Secretaría de Educación Pública
In addition to this internal review process, our exploration and production segment’s final reserves estimates are audited by independent engineering firms. Four independent engineering firms audited our estimates of proved reserves as of December 31, 2021,2022, or January 1, 2022,2023, as applicable. DeGolyer and MacNaughton, GLJ, Ryder Scott and Sproule (we refer to these firms together as the Independent"Independent Engineering Firms)Firms"). The reserves estimates reviewed by the Independent Engineering Firms totaled 89.0%represented 83.7% of our estimated proved reserves. The remaining 11.0%16.3% of our estimated proved reserves consisted mainly of reserves located in certain areas that have been shared with third parties. DeGolyer and MacNaughton audited the reserves in the Cantarell, Ku-Maloob-Zaap, Bellota-Jujo and Samaria-Luna business units, GLJ audited the reserves in the Poza Rica-Altamira, Abkatún-Pol-Chuc and Litoral de Tabasco business units, Sproule audited the reserves in the Cinco Presidentes and Macuspana-Muspac business units and Ryder Scott audited the reserves in the Reynosa, Veracruz business units and fields recently added to our inventory registry. The audits conducted by the Independent Engineering Firms consisted primarily of: (1) analysis of historical static and dynamic reservoir data that we have provided; (2) construction or updating of the Independent Engineering Firms’ own static and dynamic reservoir characterization models of some of our fields; (3) economic analysis of fields; and (4) review of our production forecasts and reserves estimates.
Since reserves estimates are, by definition, only estimates, they cannot be reviewed for the purpose of verifying exactness. Instead, the Independent Engineering Firms conducted a detailed review of our reserves estimates so that they could express an opinion as to whether, in the aggregate, the reserves estimates we furnished were reasonable and had been estimated and presented in conformity with generally accepted petroleum engineering and evaluation methods and procedures.
All questions, including any suggested modifications to prove reserves estimates, that arose during the Independent Engineering Firms’ review process were resolved by our exploration and production segment to the satisfaction of the Independent Engineering Firms. The Independent Engineering Firms have concluded that our estimated total proved oil and natural gas reserve volumes set forth in this report are, in the aggregate, reasonable and have been prepared in accordance with Rule
4-10(a)
of RegulationS-X
of the SEC, as amended (which we refer to as Rule4-10(a)),
are consistent with international reserves reporting practice and are in accordance with the revised oil and gas reserves disclosure provisions of ASC Topic 932.Our total proved developed and undeveloped reserves of crude oil, condensates and liquefiable hydrocarbons recoverable from field processing plants increased by 0.5%0.3% in 2021,2022, from 6,041.0 million barrels in 2020 to 6,073.0 million barrels in 2021.2021 to 6,089.6 million barrels in 2022. This small increase was due to discoveries, developments, delineations and revisions of our proved reserves, in particular to the recategorization due to drilling of development wells in the Quesqui, Madrefil, Yaxche, Tlamatini, MulachAyatsil, Teca, Balam, Pokche, Itta, Ek and TlacameMaloob fields, as well as variations due to revisions in the Yaxché, Quesqui, Xanab, Cheek, ZaapMulach, Tupilco Profundo and Tamaulipas-ConstitucionesLakach fields and the discovery of the Tupilco Profundo, Racemosa, Tekuani, Tlakati, Kuun, ChawilaActul, Akal NW, Atoyatl, Chucox, Chucox NW, Pokche-NE, Tentok, Tlalkivak, Xanab-SE, Xinich and TumZama oil fields.fields and one new reservoir in the existing field Niquita. Our proved developed reserves of crude oil, condensates and liquefiable hydrocarbons recoverable from processing plants increased by 1.3%1.4% in 2021,2022, from 3,603.4 million barrels in 2020 to 3,648.9 million barrels in 2021.2021 to 3,698.3 million barrels in 2022. The amount of our proved reserves of crude oil, condensate and
liquefiable hydrocarbon reserves added in 20212022 was sufficient to offset the level of production in 2021,2022, which amounted to 697.1710.2 million barrels of crude oil, condensates and liquefiable hydrocarbons.
Our total proved developed and undeveloped dry gas reserves increased by 0.8%0.6% in 2021,2022, from 6,984.2 billion cubic feet at December 31, 2020 to 7,039.5 billion cubic feet at December 31, 2021.2021 to 7,079.6 billion cubic feet at December 31, 2022. Our proved developed dry gas reserves increased by 0.3%11.1% in 2021,2022, from 3,922.3 billion cubic feet at December 31, 2020 to 3,933.7 billion cubic feet at December 31, 2021.2021 to 4,368.5 billion cubic feet at December 31, 2022. This increase was principally due to an increase in proved developed dry gas reserves of the Ixachi, Quesqui, Lakach, Onel, Gasífero, Ku Maloob, Madrefill, Teotleco, Xux and MayTupilco Profundo fields. The amount of dry gas reserves added in 20212022 was sufficient to offset the level of production in 2021,2022, which amounted to 750.9854.0 billion cubic feet of dry gas. Our proved undeveloped dry gas reserves increaseddecreased by 1.4%12.7% in 2021,2022, from 3,061.9 billion cubic feet at December 31, 2020 to 3,105.8 billion cubic feet at December 31, 2021.2021 to 2,711.1 billion cubic feet at December 31, 2022. This increase was principally due to an increasedecrease in proved undeveloped dry gas reserves was due to the development of the Quesqui, Ixachi, Gasífero, Ku, Onel and Tupilco Profundo Teca, Homolfields, mainly due to the drilling of development wells and Cuitláhuac fields.
revisions, which allowed these reserves to be classified as proven developed reserves.During 2021,2022, our exploratory activity in the shallow waters of the Gulf of Mexico and onshore regions resulted in the discovery of six11 new fields: the Tekuani, Tlakati, Chawila, Kuun, Racemosa and Tupilco Profundo crude oil fieldsfields: Actul, Akal NW, Atoyatl, Chucox, Chucox NW, Pokche-NE, Tentok, Tlalkivak, Xanab-SE, Xinich and Zama, one new gasreservoir in existing field Niquita and condensatean extension from the drilling of one appraisal well in existing field was also discovered: Tum. In addition,Valeriana. Together, these discoveries and extension activities in our Camatl field led to the incorporation of additional proved reserves. Together, these extensions and discoveries led to the incorporation of 68.089.1 million barrels of oil equivalent.
In 2021,2022, our proved reserves increased by 4324.3 million barrels of oil equivalent due to reclassifications, development, revisions and discoveries.
The following three tables of crude oil and dry gas reserves set forth our estimates of our proved reserves determined in accordance with Rule
4-10(a).
Summary of Oil and Gas20212022
(1)
Proved Reserves as of December 31, Based on Average Fiscal Year Prices
Crude Oil and Condensates(2) | Dry Gas(3) | |||||||
| (in millions of barrels) | (in billions of cubic feet) | |||||||
| Proved developed and undeveloped reserves | ||||||||
| Proved developed reserves | 3,698.3 | 4,368.5 | ||||||
| Proved undeveloped reserves | 2,391.3 | 2,711.1 | ||||||
| Total proved reserves | 6,089.6 | 7,079.6 | ||||||
_______________
Crude Oil and Condensates (2) | Dry Gas (3) | |||||||
(in millions of barrels) | (in billions of cubic feet) | |||||||
Proved developed and undeveloped reserves | ||||||||
Proved developed reserves | 3,648.9 | 3,933.7 | ||||||
Proved undeveloped reserves | 2,424.0 | 3,105.8 | ||||||
Total proved reserves | 6,073.0 | 7,039.5 | ||||||
Note: Numbers may not total due to rounding
(1)We do not currently produce synthetic oil or synthetic gas, or other natural resources from which synthetic oil or synthetic gas can be produced.
(2)Crude oil and condensate reserves include the fraction of liquefiable hydrocarbons recoverable in natural gas processing plants located at fields.
(3)Reserve volumes reported in this table are volumes of dry gas, although natural gas production reported in other tables refers to sour wet gas. There is a shrinkage in volume when natural gas liquids and impurities are extracted to obtain dry gas. Therefore, reported natural gas volumes are greater than dry gas volumes.
Source: Pemex Exploration and Production.
Crude Oil and Condensate Reserves
(including natural gas liquids)
(1)
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Proved developed and undeveloped reserves | (in millions of barrels) | Proved developed and undeveloped reserves | (in millions of barrels) | ||||||||||||||||||||||||||||||||||
At January 1 | 6,041 | 5,961 | 5,786 | 6,427 | 7,219 | At January 1 | 6,073 | 6,041 | 5,961 | 5,787 | 6,427 | ||||||||||||||||||||||||||
Revisions (2) | 565 | 651 | 784 | 22 | (95 | ) | Revisions(2) | 647 | 565 | 651 | 784 | 22 | |||||||||||||||||||||||||
Extensions and discoveries | 115 | 97 | 78 | 140 | 147 | Extensions and discoveries | 78 | 115 | 97 | 78 | 140 | ||||||||||||||||||||||||||
Production | (697 | ) | (695 | ) | (688 | ) | (743 | ) | (805 | ) | Production | (710) | (697) | (695) | (688) | (743) | |||||||||||||||||||||
Farm-outs and transfer of E&P contracts and fields due to CNH bidding process | 49 | 27 | — | (59 | ) | (38 | ) | Farm-outs and transfer of E&P contracts and fields due to CNH bidding process | 1 | 49 | 27 | — | (59) | ||||||||||||||||||||||||
At December 31 | 6,073 | 6,041 | 5,961 | 5,786 | 6,428 | At December 31 | 6,089 | 6,073 | 6,041 | 5,961 | 5,787 | ||||||||||||||||||||||||||
Proved developed reserves at December 31 | 3,649 | 3,603 | 3,585 | 3,588 | 4,166 | Proved developed reserves at December 31 | 3,698 | 3,649 | 3,603 | 3,585 | 3,588 | ||||||||||||||||||||||||||
Proved undeveloped reserves at December 31 | 2,424 | 2,438 | 2,376 | 2,198 | 2,261 | Proved undeveloped reserves at December 31 | 2,391 | 2,424 | 2,438 | 2,376 | 2,198 | ||||||||||||||||||||||||||
_______________
Note: Numbers may not total due to rounding.
(1)Crude oil and condensate reserves include the fraction of liquefiable hydrocarbons recoverable in natural gas processing plants located at fields.
(2)Revisions include positive and negative changes due to new data from well drilling, revisions made when actual reservoir performance differs from expected performance and the effect of changes in hydrocarbon prices.
Source: Pemex Exploration and Production.
Dry Gas Reserves
| 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||
| Proved developed and undeveloped reserves | (in billions of cubic feet) | ||||||||||||||||
| At January 1 | 7,040 | 6,984 | 6,352 | 6,370 | 6,593 | ||||||||||||
Revisions(1) | 847 | 195 | 1,240 | 656 | 3 | ||||||||||||
| Extensions and discoveries | 43 | 590 | 176 | 196 | 809 | ||||||||||||
Production(2) | (854) | (751) | (819) | (870) | (887) | ||||||||||||
| Farm-outs and transfer of E&P contracts and fields due to CNH bidding process | 3 | 22 | 35 | — | (148) | ||||||||||||
| At December 31 | 7,079 | 7,040 | 6,984 | 6,352 | 6,370 | ||||||||||||
| Proved developed reserves at Proved developed and undeveloped reserves December 31 | 4,368 | 3,934 | 3,922 | 3,609 | 3,380 | ||||||||||||
| Proved undeveloped reserves at December 31 | 2,711 | 3,106 | 3,062 | 2,743 | 2,990 | ||||||||||||
_______________
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Proved developed and undeveloped reserves | (in billions of cubic feet) | |||||||||||||||||||
At January 1 | 6,984 | 6,352 | 6,370 | 6,593 | 6,984 | |||||||||||||||
Revisions (1) | 195 | 1,240 | 656 | 3 | 169 | |||||||||||||||
Extensions and discoveries | 590 | 176 | 196 | 809 | 468 | |||||||||||||||
Production (2) | (751 | ) | (819 | ) | (870 | ) | (887 | ) | (999 | ) | ||||||||||
Farm-outs and transfer of E&P contracts and fields due to CNH bidding process | 21 | 35 | — | (148 | ) | (29 | ) | |||||||||||||
At December 31 | 7,040 | 6,984 | 6,352 | 6,370 | 6,593 | |||||||||||||||
Proved developed reserves at Proved developed and undeveloped reserves December 31 | 3,934 | 3,922 | 3,609 | 3,380 | 4,026 | |||||||||||||||
Proved undeveloped reserves at December 31 | 3,106 | 3,062 | 2,743 | 2,990 | 2,567 | |||||||||||||||
Note: Numbers may not total due to rounding.
(1)Revisions include positive and negative changes due to new data from well drilling, revisions made when actual reservoir performance differs from expected performance and the effect of changes in hydrocarbon prices.
(2)Production refers here to dry gas, although natural gas production reported in other tables refers to sour wet gas. There is a shrinkage in volume when natural gas liquids and impurities are extracted to obtain dry gas. Therefore, reported natural gas volumes are greater than dry gas volumes.
Source: Pemex Exploration and Production.
The following table sets forth, as of December 31, 2021,2022, the volumes of proved developed and undeveloped reserves, the number of producing wells and the number of proved undeveloped locations for the fields that contained 96.6%96.7% of our proved reserves.
| Reserves | Number of Producing Wells | Number of Undeveloped Locations(2) | |||||||||||||||
| Field | Proved(1) | Developed(1) | Undeveloped(1) | ||||||||||||||
| (in millions of barrels of oil equivalent) | |||||||||||||||||
| Ayatsil | 952.7 | 730.6 | 222.1 | 28 | 6 | ||||||||||||
| Ku-Maloob-Zaap | 886.2 | 711.8 | 174.4 | 186 | 13 | ||||||||||||
| Quesqui | 671.3 | 368.5 | 302.8 | 20 | 14 | ||||||||||||
Aceite Terciario del Golfo(3) | 629.4 | 114.9 | 514.5 | 1,304 | 3,126 | ||||||||||||
| Ixachi | 598.6 | 361.9 | 236.6 | 13 | 12 | ||||||||||||
| Akal | 385.4 | 385.4 | — | 57 | — | ||||||||||||
| Yaxché | 230.7 | 92.3 | 138.4 | 24 | — | ||||||||||||
| Kayab | 209.0 | — | 209.0 | — | 26 | ||||||||||||
Balam (4) | 171.4 | 162.7 | 8.8 | 7 | 2 | ||||||||||||
| Pit | 151.4 | — | 151.4 | — | 13 | ||||||||||||
| Tupilco Profundo | 144.1 | 97.5 | 46.7 | 2 | 5 | ||||||||||||
| Mulach | 139.7 | 14.0 | 125.7 | 11 | 5 | ||||||||||||
| Lakach | 102.0 | — | 102.0 | — | 5 | ||||||||||||
Antonio J. Bermudez(5) | 87.3 | 60.5 | 26.8 | 206 | 15 | ||||||||||||
Ek(4) | 84.3 | 84.3 | — | 23 | — | ||||||||||||
| Onel | 73.1 | 60.7 | 12.4 | 18 | — | ||||||||||||
| Tamaulipas Constituciones | 67.9 | 46.7 | 21.2 | 234 | 87 | ||||||||||||
| Tekel | 60.5 | — | 60.5 | — | 8 | ||||||||||||
| CNH-M4-ÉBANO/2018 | 56.3 | 11.9 | 44.4 | 167 | n.a. | ||||||||||||
| Santuario-El Golpe-Caracolillo | 50.1 | 40.6 | 9.6 | 94 | n.a. | ||||||||||||
| Madrefil | 47.3 | 43.6 | 3.7 | 6 | — | ||||||||||||
| Utsil | 41.7 | — | 41.7 | — | 8 | ||||||||||||
| Tlamatini | 39.2 | 7.2 | 32.0 | 4 | — | ||||||||||||
| Teotleco | 38.8 | 37.5 | 1.3 | 18 | — | ||||||||||||
| Xanab | 38.4 | 37.0 | 1.4 | 9 | — | ||||||||||||
| Arenque | 38.4 | 29.8 | 8.6 | 13 | 2 | ||||||||||||
| Xux | 36.8 | 36.8 | — | 8 | — | ||||||||||||
| Sihil | 35.7 | 35.7 | — | 19 | — | ||||||||||||
| Tlacame | 33.5 | 2.8 | 30.8 | 5 | — | ||||||||||||
| Poza Rica | 31.9 | 23.5 | 8.5 | 190 | 23 | ||||||||||||
| Valeriana | 31.0 | 0.5 | 30.5 | 2 | 6 | ||||||||||||
| Cuitláhuac | 29.5 | 20.3 | 9.2 | 195 | 45 | ||||||||||||
| Ayín | 28.4 | — | 28.4 | — | 3 | ||||||||||||
| Etkal | 27.7 | 10.8 | 17.0 | 2 | 2 | ||||||||||||
| Sini | 26.0 | 23.1 | 2.9 | 10 | 1 | ||||||||||||
| Suuk | 25.8 | 1.2 | 24.6 | 1 | 4 | ||||||||||||
| Cheek | 24.6 | 24.6 | — | 4 | — | ||||||||||||
| Itta | 24.1 | 21.1 | 3.0 | 5 | — | ||||||||||||
| Tizón | 23.7 | 23.7 | — | 8 | — | ||||||||||||
| Gasífero | 23.4 | 21.5 | 1.8 | 25 | 4 | ||||||||||||
| Cárdenas-Mora | 23.1 | 16.7 | 6.5 | 11 | n.a. | ||||||||||||
| Teca | 22.8 | 16.0 | 6.8 | 5 | 1 | ||||||||||||
| Giraldas | 21.3 | 21.3 | — | 8 | — | ||||||||||||
| Och | 21.1 | 21.1 | — | 5 | — | ||||||||||||
| Eltreinta | 20.5 | 18.9 | 1.6 | 15 | 2 | ||||||||||||
| Jujo-Tecominoacán | 20.2 | 19.2 | 1.0 | 10 | — | ||||||||||||
| Costero | 19.3 | 19.3 | — | — | — | ||||||||||||
| Ixtal | 18.7 | 18.7 | — | 15 | — | ||||||||||||
| Homol | 18.4 | 11.0 | 7.4 | 7 | 1 | ||||||||||||
| Zama | 18.4 | — | 18.4 | — | 4 | ||||||||||||
| Nejo | 18.4 | 5.7 | 12.6 | 122 | 67 | ||||||||||||
| Tlalkivak | 17.5 | — | 17.5 | — | 2 | ||||||||||||
| Teekit Profundo | 17.2 | 2.6 | 14.6 | 2 | — | ||||||||||||
| May | 16.9 | 16.9 | — | — | — | ||||||||||||
| Takín | 16.8 | 16.8 | — | 4 | — | ||||||||||||
| Rabasa | 16.7 | 14.3 | 2.4 | 45 | 5 | ||||||||||||
| Akal NW | 16.2 | — | 16.2 | — | 5 | ||||||||||||
| Tsimín | 15.6 | 15.6 | — | 6 | — | ||||||||||||
| Ogarrio | 15.5 | 13.9 | 1.7 | 94 | n.a. | ||||||||||||
| Bedel | 15.5 | 14.2 | 1.3 | 20 | 4 | ||||||||||||
| Lum | 15.3 | 10.8 | 4.5 | 2 | 3 | ||||||||||||
| Ixtoc | 14.9 | 14.9 | — | 8 | — | ||||||||||||
| Abkatún | 14.6 | 14.6 | — | 13 | — | ||||||||||||
| Tetl | 14.6 | 0.7 | 13.9 | 2 | — | ||||||||||||
| Puerto Ceiba | 14.5 | 13.2 | 1.3 | 23 | 1 | ||||||||||||
| Xikin | 14.3 | 10.1 | 4.2 | 2 | 2 | ||||||||||||
| Castarrical | 13.3 | 8.3 | 5.0 | 3 | 2 | ||||||||||||
| Bolontikú | 13.2 | 13.2 | — | 2 | — | ||||||||||||
| Cibix | 12.0 | 12.0 | — | 8 | — | ||||||||||||
| Pokche | 11.9 | 9.6 | 2.4 | 5 | 1 | ||||||||||||
| Cuervito | 11.9 | 4.5 | 7.4 | 98 | 45 | ||||||||||||
| San Ramón | 10.8 | 9.4 | 1.4 | 34 | 4 | ||||||||||||
| Caparroso-Pijije-Escuintle | 10.7 | 10.7 | — | 13 | — | ||||||||||||
| Pánuco | 10.0 | 2.8 | 7.2 | 52 | 120 | ||||||||||||
| Chuc | 10.0 | 10.0 | — | 9 | — | ||||||||||||
| Racemosa | 10.0 | 4.3 | 5.7 | — | 2 | ||||||||||||
| Kambesah | 9.9 | 9.9 | — | 4 | — | ||||||||||||
| Bellota | 9.9 | 5.6 | 4.3 | 6 | 2 | ||||||||||||
| Sen | 9.8 | 9.8 | — | 14 | — | ||||||||||||
| Cacalilao | 9.7 | 2.4 | 7.3 | 74 | 97 | ||||||||||||
| Terra | 9.6 | 8.6 | 1.0 | 11 | 2 | ||||||||||||
| Taratunich | 9.5 | 9.5 | — | 3 | — | ||||||||||||
| Chinchorro | 9.3 | 7.3 | 2.0 | 3 | 1 | ||||||||||||
| Tupilco | 9.3 | 9.3 | — | 17 | — | ||||||||||||
| Niquita | 9.1 | — | 9.1 | — | 5 | ||||||||||||
| Culebra | 9.0 | 9.0 | — | 310 | — | ||||||||||||
| Uech | 8.7 | 8.7 | — | 2 | — | ||||||||||||
| Cactus | 8.4 | 8.4 | — | 15 | — | ||||||||||||
| Tum | 8.4 | 2.1 | 6.3 | 1 | — | ||||||||||||
| Paredón | 7.8 | 5.1 | 2.7 | 1 | — | ||||||||||||
| CNH-M3-MISIÓN/2018 | 7.7 | 7.3 | 0.4 | 6 | n.a. | ||||||||||||
| Manik NW | 7.7 | 7.7 | — | 3 | — | ||||||||||||
| Tentok | 7.6 | — | 7.6 | — | 3 | ||||||||||||
| Tintal | 7.5 | 7.5 | — | 9 | — | ||||||||||||
| Sunuapa | 7.4 | 7.4 | — | 12 | — | ||||||||||||
| Chucox NW | 7.4 | 2.9 | 4.5 | 2 | 3 | ||||||||||||
| Camatl | 7.4 | 0.6 | 6.7 | 1 | 2 | ||||||||||||
| Batsil | 7.2 | — | 7.2 | — | — | ||||||||||||
| Nohoch | 7.2 | 7.2 | — | 7 | — | ||||||||||||
| Batab | 6.9 | 6.9 | — | — | — | ||||||||||||
| Velero | 6.8 | 6.0 | 0.7 | — | 7 | ||||||||||||
| Bagre | 6.4 | 6.4 | — | — | — | ||||||||||||
| Cinco Presidentes | 6.2 | 5.7 | 0.5 | 37 | — | ||||||||||||
| Jacinto | 6.2 | 6.2 | — | 4 | — | ||||||||||||
| Edén-Jolote | 5.8 | 5.8 | — | — | — | ||||||||||||
| Total | 7,203.1 | 4,329.1 | 2,874.0 | 4,103 | 3,828 | ||||||||||||
| Our proved reserves | 7,450.8 | 4,538.2 | 2,912.6 | ||||||||||||||
| Percentage | 96.7 | % | 95.4 | % | 98.7 | % | |||||||||||
_______________
Reserves | Number of Producing Wells | Number of Undeveloped Locations (2) | ||||||||||||||||||
Field | Proved (1) | Developed (1) | Undeveloped (1) | |||||||||||||||||
(in millions of barrels of oil equivalent) | ||||||||||||||||||||
Ku-Maloob-Zaap | 1,075.0 | 836.2 | 238.8 | 184 | 20 | |||||||||||||||
Aceite Terciario del Golfo (3 ) | 653.0 | 114.1 | 538.9 | 1,348 | 3276 | |||||||||||||||
Antonio J. Bermudez (4 ) | 104.4 | 65.3 | 39.0 | 185 | 18 | |||||||||||||||
Balam (5 ) | 179.4 | 162.7 | 16.8 | 17 | 3 | |||||||||||||||
Ek (5 ) | 95.1 | 63.2 | 31.8 | 18 | 2 | |||||||||||||||
Ayatsil | 983.0 | 606.9 | 376.1 | 20 | 16 | |||||||||||||||
Ixachi | 604.8 | 281.9 | 322.9 | 9 | 15 | |||||||||||||||
Akal | 583.3 | 583.3 | 0.0 | 55 | 0 | |||||||||||||||
Quesqui | 521.5 | 136.9 | 384.6 | 8 | 19 | |||||||||||||||
Kayab | 178.1 | 0.0 | 178.1 | 0 | 26 | |||||||||||||||
Pit | 151.8 | 0.0 | 151.8 | 0 | 13 | |||||||||||||||
Santuario-El Golpe-Caracolillo | 77.9 | 33.2 | 44.7 | 20 | 0 | |||||||||||||||
Tamaulipas Constituciones | 75.7 | 54.4 | 21.3 | 253 | 87 | |||||||||||||||
Onel | 73.9 | 73.9 | 0.0 | 18 | 0 | |||||||||||||||
Suuk | 68.4 | 9.2 | 59.2 | 0 | 5 | |||||||||||||||
Pokche | 67.1 | 7.3 | 59.7 | 3 | 8 | |||||||||||||||
Yaxché | 64.7 | 64.7 | 0.0 | 25 | 0 | |||||||||||||||
Madrefil | 61.3 | 52.8 | 8.4 | 8 | 1 | |||||||||||||||
Tekel | 60.7 | 0.0 | 60.7 | 0 | 8 | |||||||||||||||
Lakach | 60.3 | 0.0 | 60.3 | 0 | 4 | |||||||||||||||
Teotleco | 58.9 | 55.8 | 3.2 | 19 | 1 | |||||||||||||||
CNH-M4-ÉBANO/2018 | 57.9 | 9.4 | 48.5 | 153 | n.a | |||||||||||||||
Xanab | 52.8 | 52.8 | 0.0 | 10 | 0 | |||||||||||||||
Arenque | 42.8 | 34.1 | 8.6 | 16 | 2 | |||||||||||||||
Utsil | 41.8 | 0.0 | 41.8 | 0 | 8 | |||||||||||||||
Tizón | 34.7 | 34.7 | 0.0 | 8 | 0 | |||||||||||||||
Etkal | 33.9 | 18.0 | 16.0 | 2 | 2 | |||||||||||||||
Jujo-Tecominoacán | 32.9 | 25.7 | 7.2 | 17 | 5 | |||||||||||||||
Tupilco Profundo | 32.6 | 5.6 | 27.0 | 1 | 5 | |||||||||||||||
Sini | 31.8 | 28.1 | 3.7 | 8 | 2 | |||||||||||||||
Sihil | 31.3 | 31.3 | 0.0 | 17 | 0 | |||||||||||||||
Poza Rica | 30.9 | 23.1 | 7.7 | 197 | 23 | |||||||||||||||
Cheek | 29.3 | 29.3 | �� | 0.0 | 4 | 0 | ||||||||||||||
Tlacame | 28.4 | 28.4 | 0.0 | 6 | 0 | |||||||||||||||
Ayín | 28.4 | 0.0 | 28.4 | 0 | 4 | |||||||||||||||
Tlamatini | 26.6 | 26.6 | 0.0 | 6 | 0 | |||||||||||||||
Xux | 26.2 | 26.2 | 0.0 | 10 | 0 | |||||||||||||||
Cuitláhuac | 25.5 | 16.6 | 8.9 | 194 | 46 | |||||||||||||||
May | 24.7 | 24.7 | 0.0 | 9 | 0 | |||||||||||||||
Mulach | 22.4 | 20.0 | 2.4 | 8 | 1 | |||||||||||||||
Eltreinta | 22.0 | 18.9 | 3.1 | 16 | 3 | |||||||||||||||
Ixtal | 21.6 | 21.6 | 0.0 | 14 | 0 | |||||||||||||||
Giraldas | 20.7 | 20.7 | 0.0 | 8 | 0 | |||||||||||||||
Och | 20.0 | 20.0 | 0.0 | 5 | 0 | |||||||||||||||
Cárdenas-Mora | 19.9 | 12.0 | 8.0 | 11 | 0 | |||||||||||||||
Tsimín | 19.2 | 19.2 | 0.0 | 6 | 0 | |||||||||||||||
Ixtoc | 18.4 | 18.4 | 0.0 | 9 | 0 | |||||||||||||||
Homol | 18.3 | 9.5 | 8.8 | 6 | 0 | |||||||||||||||
Rabasa | 17.4 | 12.4 | 5.0 | 43 | 8 | |||||||||||||||
Kambesah | 17.3 | 17.3 | 0.0 | 4 | 0 | |||||||||||||||
Esah | 17.3 | 0.0 | 17.3 | 0 | 2 | |||||||||||||||
Bellota | 17.2 | 12.8 | 4.4 | 6 | 2 | |||||||||||||||
Takín | 17.0 | 17.0 | 0.0 | 3 | 0 | |||||||||||||||
Abkatún | 16.9 | 16.9 | 0.0 | 13 | 0 | |||||||||||||||
Bolontikú | 16.7 | 16.7 | 0.0 | 2 | 0 | |||||||||||||||
Koban | 16.5 | 10.1 | 6.5 | 2 | 2 | |||||||||||||||
Cuervito | 16.0 | 5.7 | 10.3 | 90 | 54 | |||||||||||||||
Puerto Ceiba | 15.9 | 14.7 | 1.3 | 18 | 1 | |||||||||||||||
Lum | 15.7 | 11.2 | 4.6 | 3 | 3 | |||||||||||||||
Ogarrio | 15.6 | 10.2 | 5.4 | 74 | 0 | |||||||||||||||
Valeriana | 15.6 | 0.3 | 15.3 | 2 | 0 | |||||||||||||||
Bedel | 15.4 | 11.7 | 3.7 | 15 | 6 | |||||||||||||||
Nejo | 15.3 | 2.4 | 12.9 | 127 | 62 | |||||||||||||||
Paredón | 15.2 | 15.2 | 0.0 | 3 | 0 | |||||||||||||||
Costero | 14.6 | 14.6 | 0.0 | 11 | 0 | |||||||||||||||
Gasífero | 14.3 | 12.2 | 2.2 | 28 | 6 | |||||||||||||||
Terra | 13.4 | 12.4 | 1.0 | 12 | 2 | |||||||||||||||
Castarrical | 13.2 | 6.5 | 6.8 | 3 | 2 | |||||||||||||||
Cibix | 13.1 | 7.8 | 5.3 | 6 | 2 | |||||||||||||||
Cinco Presidentes | 12.7 | 12.2 | 0.5 | 37 | 1 | |||||||||||||||
Caparroso-Pijije-Escuintle | 11.3 | 11.3 | 0.0 | 14 | 0 | |||||||||||||||
Teca | 11.3 | 0.0 | 11.3 | 2 | 5 | |||||||||||||||
Tupilco Profundo | 11.2 | 11.2 | 0.0 | 17 | 0 | |||||||||||||||
Sen | 10.5 | 10.5 | 0.0 | 13 | 0 | |||||||||||||||
Xikin | 10.3 | 10.3 | 0.0 | 2 | 0 | |||||||||||||||
CNH-M3-MISIÓN/2018 | 9.5 | 0.0 | 9.5 | 9 | n.a | |||||||||||||||
Chinchorro | 9.1 | 7.1 | 2.0 | 3 | 1 | |||||||||||||||
Nohoch | 9.1 | 9.1 | 0.0 | 6 | 0 | |||||||||||||||
Tintal | 9.0 | 9.0 | 0.0 | 8 | 0 | |||||||||||||||
Sunuapa | 8.8 | 8.8 | 0.0 | 9 | 0 | |||||||||||||||
Cacalilao | 8.8 | 1.6 | 7.3 | 53 | 97 | |||||||||||||||
Pánuco | 8.6 | 1.4 | 7.2 | 50 | 120 | |||||||||||||||
Culebra | 8.2 | 8.2 | 0.0 | 290 | 0 | |||||||||||||||
Camatl | 7.8 | 1.3 | 6.4 | 1 | 4 | |||||||||||||||
Uech | 7.7 | 7.7 | 0.0 | 2 | 0 | |||||||||||||||
Chuc | 7.5 | 7.5 | 0.0 | 7 | 0 | |||||||||||||||
Itta | 7.4 | 6.7 | 0.8 | 4 | 1 | |||||||||||||||
Taratunich | 7.4 | 7.4 | 0.0 | 3 | 0 | |||||||||||||||
Manik NW | 7.4 | 7.4 | 0.0 | 3 | 0 | |||||||||||||||
Batsil | 7.2 | 0.0 | 7.2 | 0 | 0 | |||||||||||||||
Tetl | 7.1 | 7.1 | 0.0 | 3 | 0 | |||||||||||||||
Vinik | 7.0 | 0.0 | 7.0 | 0 | 1 | |||||||||||||||
Chac | 6.6 | 6.6 | 0.0 | 6 | 0 | |||||||||||||||
Racemosa | 6.5 | 0.7 | 5.8 | 0 | 2 | |||||||||||||||
Cactus | 6.5 | 6.5 | 0.0 | 10 | 0 | |||||||||||||||
Octli | 6.4 | 6.4 | 0.0 | 5 | 0 | |||||||||||||||
Kab | 6.3 | 6.3 | 0.0 | 4 | 0 | |||||||||||||||
Bagre | 6.2 | 6.2 | 0.0 | 0 | 0 | |||||||||||||||
Jacinto | 6.0 | 6.0 | 0.0 | 4 | 0 | |||||||||||||||
Total | 7,172.7 | 4,189.4 | 2,983.2 | 3,961 | 4,007 | |||||||||||||||
Our proved reserves | 7,426.5 | 4,405.3 | 3,021.2 | |||||||||||||||||
Percentage | 96.6 | 95.1 | 98.7 | |||||||||||||||||
Note: Numbers may not total due to rounding.
n.a.: No data available as undeveloped reserves are located in areas shared with third-parties.
(1)Proved reserves, developed reserves and undeveloped reserves are expressed in millions of barrels of oil equivalent. To convert dry gas to barrels of oil equivalent, a factor of 5.201 thousand cubic feet of dry gas per barrel of oil equivalent is used.
(2)Undeveloped Locations refers to the number of geographic sites or locations where a well will be drilled to produce undeveloped proved reserves.
(5)Includes the Cunduacán, Iride, Oxiacaque, Platanal and Samaria fields.
Source: Pemex Exploration and Production.
Our RRR, for a given period is calculated by dividing the sum of proved reserves additions due to discoveries, developments, delineations and revisions by that period’s total production. During 2021,2022, we obtained 884.1898.7 million barrels of oil equivalent of proved reserves, which represents an RRR of 105.1%102.8%, as compared to our RRR of 119.7%105.1% in 2020. We2021. While our RRR has trended downwards in recent years, we expect to continue obtaining an RRR of around 100%, as in recent years.
Our reserves production ratio, which is presented in terms of years, is calculated by dividing the estimated remaining reserves at the end of the relevant year by the total production of hydrocarbons for that year. As of December 31, 2021,2022, this ratio was 8.88.5 years for proved reserves.
For more information, see Note 31 to our consolidated financial statements included herein.
Sales Prices and Production Costs
The following table sets forth our average sales price per unit of oil and gas produced and our average production cost per unit of production, in the aggregate and for each field containing 10% or more of our proved reserves.
Unit Sales Prices and Production Costs
(1)
Ku-Maloob-Zaap | Ayatsil (2) | Other Fields | All Fields | Ku-Maloob-Zaap | Ayatsil(2) | Other Fields | All Fields | |||||||||||||||||||||||
| (in U.S. dollars) | ||||||||||||||||||||||||||||||
(in U.S. dollars) | ||||||||||||||||||||||||||||||
| Year ended December 31, 2022 | Year ended December 31, 2022 | |||||||||||||||||||||||||||||
| Average sales prices | Average sales prices | |||||||||||||||||||||||||||||
| Crude oil, per barrel | Crude oil, per barrel | $ | 75.09 | $ | 62.78 | $ | 100.99 | $ | 89.84 | |||||||||||||||||||||
| Natural gas, per thousand cubic feet | Natural gas, per thousand cubic feet | $ | 7.36 | $ | 6.17 | $ | 7.17 | $ | 7.17 | |||||||||||||||||||||
| Average production costs, per barrel of oil equivalent | Average production costs, per barrel of oil equivalent | $ | 21.19 | $ | 20.13 | $ | 16.48 | $ | 17.80 | |||||||||||||||||||||
Year ended December 31, 2021 | Year ended December 31, 2021 | |||||||||||||||||||||||||||||
Average sales prices | Average sales prices | |||||||||||||||||||||||||||||
Crude oil, per barrel | $ | 61.06 | $ | 54.60 | $ | 71.37 | $ | 66.06 | Crude oil, per barrel | $ | 61.06 | $ | 54.60 | $ | 71.37 | $ | 66.06 | |||||||||||||
Natural gas, per thousand cubic feet | $ | 4.74 | $ | 4.03 | $ | 5.19 | $ | 5.16 | Natural gas, per thousand cubic feet | $ | 4.74 | $ | 4.03 | $ | 5.19 | $ | 5.16 | |||||||||||||
Average production costs, per barrel of oil equivalent | $ | 16.16 | $ | 16.33 | $ | 15.67 | $ | 15.84 | Average production costs, per barrel of oil equivalent | $ | 16.16 | $ | 16.33 | $ | 15.67 | $ | 15.84 | |||||||||||||
Year ended December 31, 2020 | Year ended December 31, 2020 | |||||||||||||||||||||||||||||
Average sales prices | Average sales prices | |||||||||||||||||||||||||||||
Crude oil, per barrel | $ | 31.58 | $ | 29.53 | $ | 40.09 | $ | 35.47 | Crude oil, per barrel | $ | 31.58 | $ | 29.53 | $ | 40.09 | $ | 35.47 | |||||||||||||
Natural gas, per thousand cubic feet | $ | 2.92 | $ | 2.50 | $ | 2.50 | $ | 2.54 | Natural gas, per thousand cubic feet | $ | 2.92 | $ | 2.50 | $ | 2.50 | $ | 2.54 | |||||||||||||
Average production costs, per barrel of oil equivalent | $ | 9.38 | $ | 6.28 | $ | 12.39 | $ | 11.15 | Average production costs, per barrel of oil equivalent | $ | 9.38 | $ | 6.28 | $ | 12.39 | $ | 11.15 | |||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||
Average sales prices | ||||||||||||||||||||||||||||||
Crude oil, per barrel | $ | 53.36 | $ | 50.75 | $ | 62.92 | $ | 57.13 | ||||||||||||||||||||||
Natural gas, per thousand cubic feet | $ | 3.63 | $ | 3.13 | $ | 3.54 | $ | 3.55 | ||||||||||||||||||||||
Average production costs, per barrel of oil equivalent | $ | 10.49 | $ | 9.02 | $ | 16.41 | $ | 14.06 | ||||||||||||||||||||||
(1)Average of sales prices as of the last day of each month of the year.
(2)Derived from the breakdown of the Ayatsil field, which was reported within Ku-Maloob-Zaap, the price vectors of the Ku-Maloob-Zaap column and other fields were updated in 2020.
Source: Pemex Exploration and Production
In 2021,2022, our average production cost was U.S. $15.84$17.80 per barrel of oil equivalent, which represented an increase of 42.1%12.4%, as compared to our average production cost of U.S. $11.15$15.84 per barrel of oil equivalent in 2020.2021. This increase resulted primarily from increase of royalties payments for the price of crude oil, and the higher expenses in repairoperation of related equipment, wells costs, andnon-capitalizedmaintenance costs, supplies, chemicals, gas used for gas lifting, maintenance and operation of wells and related equipment and facilities.equipment.
We calculate and disclose our production costs pursuant to international practices, which are based on U.S. GAAP under ASC Topic 932. In accordance with ASC Topic 932, the production cost per barrel of oil equivalent is calculated by dividing total production expenses (in U.S. dollars) by total production of oil and gas (in barrels of oil equivalent) for the relevant period.
Our total production cost consists of all direct and indirect costs incurred to produce crude oil and gas, including costs associated with the operation and maintenance of wells and related equipment and facilities. In addition, it includes costs of labor to operate the wells and facilities, the costs of materials, supplies and fuel consumed, including gas used for
gas lifting, nitrogen and other chemicals, repair and
non-capitalized
maintenance costs, and other costs, such as fees for general services, a labor fund for active personnel, corporate services, indirect overhead and applicable taxes and duties. However, it excludesnon-cash
expenses such as amortization of capitalized well expenses, the depreciation of fixed assets, expenses associated with the distribution and handling of oil and gas and other expenses that are related to exploration, development and drilling activities.Crude Oil and Natural Gas Production
In 2021,2022, we produced an average of 1,735.71,764.2 thousand barrels per day of crude oil, an increase of 2.9 %1.6% as compared to our average production of 1,686.31,735.7 thousand barrels per day of crude oil in 2020.2021. The increase in 2021 resulted primarily from2022 is mainly due to new fields Cheek,Esah, Itta, Koban, Mulach, Manik NW, Octli, Pokche, Tlacame, Tlamatini, Tetl, Xolotl,Teca, Teekit Profundo, Uchbal, Xanab, Yaxche, Quesqui, Tupilco Profundo, Quesqui, Cibix, Teotleco and Ixachi. Our average production of heavy crude oil decreased by 67.276.9 thousand barrels per day, or 6.3%7.6% less than the average daily production in 2020, primarily2021, mainly due to a drecreasedecrease in our drilling and maintenance activities and a decline in production at our fields, primarily at theand Samaria field. In 2021,2022, the average production of light crude oil increaseincreased by 116.5105.4 thousand barrels per day, or 19.014.5 %, as compared to 2020.2021. The increase in light crude oil production was mainly because ofdue to an increase in production at new offshore field projects Cheek,Esah, Itta,
Ku-Maloob-Zaap
Koban, Mulach, Manik NW, Octli, Pokche, Tlacame, Tlamatini, Tetl, Xolotl,Teca, Teekit Profundo, Uchbal, Xanab, Yaxche, and onshore field projects Quesqui, Tupilco Profundo, Quesqui, Cibix, Teotleco and Ixachi.
Crude oil can be classified by its sulfur content. “Sour” or heavy crude oil contains 3.4% or greater sulfur content by weight and “sweet” or light crude oil contains less than 1.0% sulfur content by weight. Most of our production is classified as sour or heavy crude oil.
Our exploration and production segment primarily produces four types of crude oil:
•Altamira, a heavy crude oil;
•Maya, a heavy crude oil;
•Istmo, a light crude oil; and
•Olmeca, an
extra-light
crude oil.Most of our production consists of Istmo and Maya crude oil. In 2021, 58.0 %2022, 52.7% of our total production of crude oil consisted of heavy crude oil and 42.0 %47.3% consisted of light and(68.5 %(67.9% of these regions’ production in 2021)2022), although significant volumes of light and extra light crude oil are also produced there (31.5 %(32.1% of these regions’ production in 2021)2022). The Southern region yields mainly light and92.8 %98.0% of this region’s production in 2021,2022, as well as lesser amounts of heavy crude oil (7.2 %(2.0% of this region’s production in 2021)2022) and the Northern region yields both light and(47.2%(49.8% of this region’s production in 2021)2022) and heavy crude oil (52.8 %(50.2% of this region’s production in 2021)2022).
extra-light
crude oil. The Marine regions yield mostly heavy crude oil extra-light
crude oil (together, extra-light
crude oil The most productive crude oil and natural gas fields in the Gulf of Mexico are located in theand Cantarell business units in the Marine regions and the Samaria Luna andbusiness unit wasremained our most important crude oil producer in 2021,2022, producing an average of 718.1639.3 thousand barrels per day of crude oil in 2021,2022, or 41.1%36.2% of our total crude oil production for the year, and 834.9788.6 million cubic feet per day of natural gas, or 17.9 %16.8% of our total natural gas production for the year. Our second most important crude oil producer was Litoral de Tabasco which produced an average of 325.4349.4 thousand barrels per day of crude oil in 2021,2022, or 18.7 %19.8% of our total crude oil production for the year, and an average of 555.8576.5 million cubic feet per day of natural gas, or 11.9 %12.3% of our total natural gas production for the year.
Ku-Maloob-Zaap,
Litoral de Tabasco,Abkatún-Pol-Chuc
Bellota-Jujo
business units in the Southern region. In particular, theKu-Maloob-Zaap
The following table sets forth our annual crude oil production rates by type of oil for the five years ended December 31, 2021.2022.
Crude Oil Production
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||
| (in thousands of barrels per day) | (%) | |||||||||||||||||||
| Marine regions | ||||||||||||||||||||
| Heavy crude oil | 873.1 | 937.2 | 976.1 | 982.7 | 996.1 | (6.8) | ||||||||||||||
Light crude oil(1) | 412.2 | 431.8 | 397.1 | 402.2 | 514.8 | (4.5) | ||||||||||||||
| Total | 1,285.3 | 1,369.0 | 1,373.2 | 1,384.8 | 1,510.9 | (6.1) | ||||||||||||||
| Southern region | ||||||||||||||||||||
| Heavy crude oil | 7.5 | 19.5 | 32.8 | 36.2 | 25.8 | (61.5) | ||||||||||||||
Light crude oil(1) | 372.0 | 251.3 | 194.9 | 172.2 | 193.6 | 48.0 | ||||||||||||||
| Total | 379.4 | 270.8 | 227.8 | 208.4 | 219.4 | 40.1 | ||||||||||||||
| Northern region | ||||||||||||||||||||
| Heavy crude oil | 49.9 | 50.7 | 65.5 | 55.6 | 49.3 | (1.6) | ||||||||||||||
Light crude oil(1) | 49.5 | 45.2 | 19.8 | 34.9 | 43.0 | 9.5 | ||||||||||||||
| Total | 99.4 | 95.9 | 85.3 | 90.6 | 92.3 | 3.6 | ||||||||||||||
| Total heavy crude oil | 930.5 | 1,007.3 | 1,074.5 | 1,074.5 | 1,071.2 | (7.6) | ||||||||||||||
Total light crude oil(1) | 833.7 | 728.3 | 611.8 | 609.3 | 751.4 | 14.5 | ||||||||||||||
| Total crude oil | 1,764.2 | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1.6 | ||||||||||||||
_______________
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in thousands of barrels per day) | (%) | |||||||||||||||||||||||
Marine regions | ||||||||||||||||||||||||
Heavy crude oil | 937.2 | 976.1 | 982.7 | 996.1 | 978.0 | -4.0 | ||||||||||||||||||
Light crude oil (1) | 431.8 | 397.1 | 402.2 | 514.8 | 605.6 | 8.7 | ||||||||||||||||||
Total | 1,369.0 | 1,373.2 | 1,384.8 | 1,510.9 | 1,583.6 | -0.3 | ||||||||||||||||||
Southern region | ||||||||||||||||||||||||
Heavy crude oil | 19.5 | 32.8 | 36.2 | 25.8 | 16.9 | -40.5 | ||||||||||||||||||
Light crude oil (1) | 251.3 | 194.9 | 172.2 | 193.6 | 249.8 | 28.9 | ||||||||||||||||||
Total | 270.8 | 227.8 | 208.4 | 219.4 | 266.7 | 18.9 | ||||||||||||||||||
Northern region | ||||||||||||||||||||||||
Heavy crude oil | 50.7 | 65.5 | 55.6 | 49.3 | 54.2 | -22.6 | ||||||||||||||||||
Light crude oil (1) | 45.2 | 19.8 | 34.9 | 43.0 | 43.8 | 128.3 | ||||||||||||||||||
Total | 95.9 | 85.3 | 90.6 | 92.3 | 97.9 | 12.4 | ||||||||||||||||||
Total heavy crude oil | 1,007.3 | 1,074.5 | 1,074.5 | 1,071.2 | 1,049.1 | -6.3 | ||||||||||||||||||
Total light crude oil (1) | 728.3 | 611.8 | 609.3 | 751.4 | 899.2 | 19.0 | ||||||||||||||||||
Total crude oil | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1,948.3 | 2.9 | ||||||||||||||||||
Note: Numbers may not total due to rounding.
(1)Includes extra-light crude oil.|
Source: Pemex Exploration and Production.
The following table sets forth our annual crude oil production by region and business unit for the five years ended December 31, 2021.2022.
Crude Oil Production
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||
| (in thousands of barrels per day) | (%) | |||||||||||||||||||
| Marine regions | ||||||||||||||||||||
| Ku-Maloob-Zaap | 639.3 | 718.1 | 784.3 | 842.7 | 874.7 | (11.0) | ||||||||||||||
| Litoral de Tabasco | 349.4 | 325.4 | 258.2 | 198.8 | 291.1 | 7.4 | ||||||||||||||
| Cantarell | 158.3 | 160.9 | 161.2 | 159.3 | 161.2 | (1.6) | ||||||||||||||
| Abkatún-Pol-Chuc | 138.3 | 164.6 | 169.4 | 184.0 | 183.8 | (16.0) | ||||||||||||||
| Total | 1,285.3 | 1,369.0 | 1,373.2 | 1,384.8 | 1,510.9 | (6.1) | ||||||||||||||
| Southern region | ||||||||||||||||||||
| Bellota-Jujo | 221.5 | 114.0 | 71.8 | 58.2 | 58.6 | 94.3 | ||||||||||||||
| Samaria-Luna | 85.8 | 87.5 | 86.3 | 82.1 | 86.5 | (1.9) | ||||||||||||||
| Macuspana-Muspac | 39.6 | 36.3 | 33.2 | 26.4 | 23.6 | 9.1 | ||||||||||||||
| Cinco Presidentes | 32.5 | 33.1 | 36.5 | 41.5 | 50.7 | (1.8) | ||||||||||||||
| Total | 379.4 | 270.8 | 227.8 | 208.3 | 219.4 | 40.1 | ||||||||||||||
| Northern region | ||||||||||||||||||||
| Poza Rica-Altamira | 49.9 | 53.0 | 55.5 | 41.0 | 43.7 | (5.8) | ||||||||||||||
Aceite Terciario del Golfo(1) | n.a. | n.a. | n.a. | 24.3 | 28.4 | n.a. | ||||||||||||||
| Veracruz | 48.4 | 41.9 | 28.4 | 22.3 | 17.6 | 15.5 | ||||||||||||||
| Burgos | 1.1 | 1.0 | 1.6 | 3.0 | 2.6 | 10.0 | ||||||||||||||
| Total | 99.4 | 95.9 | 85.4 | 90.6 | 92.3 | 3.6 | ||||||||||||||
| Total crude oil | 1,764.2 | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1.6 | ||||||||||||||
_______________
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in thousands of barrels per day) | (%) | |||||||||||||||||||||||
Marine regions | ||||||||||||||||||||||||
Ku-Maloob-Zaap | 718.1 | 784.3 | 842.7 | 874.7 | 858.0 | -8.4 | ||||||||||||||||||
Litoral de Tabasco | 325.4 | 258.2 | 198.8 | 291.1 | 345.8 | 26.0 | ||||||||||||||||||
Abkatún-Pol-Chuc | 164.6 | 169.4 | 184.0 | 183.8 | 203.2 | -2.8 | ||||||||||||||||||
Cantarell | 160.9 | 161.2 | 159.3 | 161.2 | 176.0 | -0.2 | ||||||||||||||||||
Total | 1,369.0 | 1,373.2 | 1,384.8 | 1,510.9 | 1,583.6 | -0.3 | ||||||||||||||||||
Southern region | ||||||||||||||||||||||||
Bellota-Jujo | 114.0 | 71.8 | 58.2 | 58.6 | 72.4 | 58.8 | ||||||||||||||||||
Samaria-Luna | 87.5 | 86.3 | 82.1 | 86.5 | 99.9 | 1.4 | ||||||||||||||||||
Macuspana-Muspac | 36.3 | 33.2 | 26.4 | 23.6 | 31.3 | 9.3 | ||||||||||||||||||
Cinco Presidentes | 33.1 | 36.5 | 41.5 | 50.7 | 63.1 | -9.3 | ||||||||||||||||||
Total | 270.8 | 227.8 | 208.3 | 219.4 | 266.7 | 18.9 | ||||||||||||||||||
Northern region | ||||||||||||||||||||||||
Poza Rica-Altamira | 53.0 | 55.5 | 41.0 | 43.7 | 48.2 | -4.5 | ||||||||||||||||||
Aceite Terciario del Golfo (1) | n.a. | n.a. | 24.3 | 28.4 | 34.4 | n.a. | ||||||||||||||||||
Veracruz | 41.9 | 28.4 | 22.3 | 17.6 | 15.3 | 47.5 | ||||||||||||||||||
Burgos | 1.0 | 1.6 | 3.0 | 2.6 | — | -37.5 | ||||||||||||||||||
Total | 95.9 | 85.4 | 90.6 | 92.3 | 97.9 | 12.3 | ||||||||||||||||||
Total crude oil | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1,948.3 | 2.9 | ||||||||||||||||||
Note: Numbers may not total due to rounding.
n.a. No data available due to the merger of the Aceite Terciario del Golfo business unit with the Poza Rica-Altamira business unit in 2019. |
(1)Prior to July 1, 2019, Pemex Exploration and Production, as a result of organizational changes, merged the Aceite Terciario del Golfo business unit into the Poza Rica-Altamira business unit.
Source: Pemex Exploration and Production.
The Marine regions, which are comprised of the Northeastern Marine region and the Southwestern Marine region, are located on the continental shelf and its slope in the Gulf of Mexico. They cover a surface area of approximately 550,000 square kilometers, located entirely within Mexican territorial waters, along the coast of the states of Tabasco, Campeche, Yucatán, Quintana Roo and the southern coast of the state of Veracruz. In 2021,2022, the average crude oil production from the 5861 fields located in these regions was 1,369.01,285.3 thousand barrels per day.
The Southern region covers an area of approximately 392,000 square kilometers, including the states of Guerrero, Oaxaca, Chiapas, Tabasco, Yucatán, Quintana Roo, Campeche and Veracruz. In 2021,2022, the average crude oil production from the 74 fields located in this region was 270.8379.4 thousand barrels per day.
The Northern region, including its offshore area, is located on the continental shelf in the Gulf of Mexico along the coast of the state of Tamaulipas and the northern coast of the state of Veracruz. It covers an area of approximately 1.8 million square kilometers. Our production area in the onshore portion of this region is located in, among others, the states of Veracruz, Tamaulipas, Nuevo León, Coahuila, San Luis Potosí and Puebla; we also produce offshore on the continental
shelf in the Gulf of Mexico. In 2021,2022, the average crude oil production in the Northern region totaled 95.999.4 thousand barrels per day of crude oil, from the 191 oil fields in this region.
The following table sets forth our annual natural gas production by region and business unit for the five years ended December 31, 2021.2022.
Natural Gas Production
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||
| (in millions of cubic feet per day) | (%) | |||||||||||||||||||
| Marine regions | ||||||||||||||||||||
| Cantarell | 860.4 | 1,055.0 | 1,163.6 | 1,245.7 | 1,151.1 | (18.4) | ||||||||||||||
| Ku-Maloob-Zaap | 788.6 | 834.9 | 871.4 | 785.8 | 693.5 | (5.5) | ||||||||||||||
| Litoral de Tabasco | 576.5 | 555.8 | 626.4 | 713.1 | 798.0 | 3.7 | ||||||||||||||
| Abkatún-Pol-Chuc | 375.6 | 402.5 | 362.3 | 300.5 | 288.2 | (6.7) | ||||||||||||||
| Total | 2,601.1 | 2,848.2 | 3,023.7 | 3,045.2 | 2,930.8 | (8.7) | ||||||||||||||
| Southern region | ||||||||||||||||||||
| Bellota-Jujo | 645.2 | 325.1 | 162.9 | 128.1 | 147.4 | 98.5 | ||||||||||||||
| Samaria-Luna | 283.5 | 298.7 | 331.6 | 371.7 | 381.0 | (5.1) | ||||||||||||||
| Macuspana-Muspac | 198.2 | 268.9 | 309.6 | 269.3 | 249.2 | (26.3) | ||||||||||||||
| Cinco Presidentes | 47.3 | 43.9 | 59.6 | 74.3 | 90.9 | 7.7 | ||||||||||||||
| Total | 1,174.3 | 936.6 | 863.7 | 843.4 | 868.5 | 25.4 | ||||||||||||||
| Northern region | ||||||||||||||||||||
| Burgos | 419.3 | 445.2 | 522.2 | 567.6 | 603.9 | (5.8) | ||||||||||||||
| Veracruz | 398.7 | 332.2 | 224.4 | 208.1 | 217.3 | 20.0 | ||||||||||||||
Aceite Terciario del Golfo (1) | n.a. | n.a. | n.a. | 69.4 | 92.2 | n.a. | ||||||||||||||
| Poza Rica-Altamira | 99.4 | 108.2 | 127.6 | 82.5 | 90.3 | (8.2) | ||||||||||||||
| Total | 917.4 | 885.7 | 874.1 | 927.6 | 1,003.7 | 3.6 | ||||||||||||||
| Total natural gas | 4,692.8 | 4,670.5 | 4,761.6 | 4,816.2 | 4,803.0 | 0.5 | ||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in millions of cubic feet per day) | (%) | |||||||||||||||||||||||
Marine regions | ||||||||||||||||||||||||
Cantarell | 1,055.0 | 1,163.6 | 1,245.7 | 1,151.1 | 1,133.4 | -9.3 | ||||||||||||||||||
Ku-Maloob-Zaap | 834.9 | 871.4 | 785.8 | 693.5 | 552.3 | -4.2 | ||||||||||||||||||
Litoral de Tabasco | 555.8 | 626.4 | 713.1 | 798.0 | 882.3 | -11.3 | ||||||||||||||||||
Abkatún-Pol-Chuc | 402.5 | 362.3 | 300.5 | 288.2 | 319.5 | 11.1 | ||||||||||||||||||
Total | 2,848.2 | 3,023.7 | 3,045.2 | 2,930.8 | 2,887.6 | -5.8 | ||||||||||||||||||
Southern region | ||||||||||||||||||||||||
Samaria-Luna | 298.7 | 331.6 | 371.7 | 381.0 | 426.9 | -9.9 | ||||||||||||||||||
Macuspana-Muspac | 268.9 | 309.6 | 269.3 | 249.2 | 291.6 | -13.1 | ||||||||||||||||||
Bellota-Jujo | 325.1 | 162.9 | 128.1 | 147.4 | 183.3 | 99.6 | ||||||||||||||||||
Cinco Presidentes | 43.9 | 59.6 | 74.3 | 90.9 | 109.1 | -26.3 | ||||||||||||||||||
Total | 936.6 | 863.7 | 843.4 | 868.5 | 1,011.0 | 8.4 | ||||||||||||||||||
Northern region | ||||||||||||||||||||||||
Burgos | 445.2 | 522.2 | 567.6 | 603.9 | 699.2 | -14.7 | ||||||||||||||||||
Veracruz | 332.2 | 224.4 | 208.1 | 217.3 | 263.5 | 48.0 | ||||||||||||||||||
Aceite Terciario del Golfo (1) | n.a. | n.a. | 69.4 | 92.2 | 118.5 | n.a. | ||||||||||||||||||
Poza Rica-Altamira | 108.2 | 127.6 | 82.5 | 90.3 | 88.2 | -15.2 | ||||||||||||||||||
Total | 885.7 | 874.1 | 927.6 | 1,003.7 | 1,169.4 | 1.3 | ||||||||||||||||||
Total natural gas | 4,670.5 | 4,761.6 | 4,816.2 | 4,803.0 | 5,068.0 | -1.9 | ||||||||||||||||||
Note: Numbers may not total due to rounding.
n.a. No data available due to the merger of the Aceite Terciario del Golfo business unit with the Poza Rica-Altamira business unit in 2019. |
(1)Prior to July 1, 2019, Pemex Exploration and Production, as a result of organizational changes, merged the Aceite Terciario del Golfo business unit into the Poza Rica-Altamira business unit.
Source: Pemex Exploration and Production.
In 2021,2022, the Marine regions produced 2,848.22,601.1 million cubic feet per day of natural gas, or 61.0 %55.4% of our total natural gas production, a decrease of 5.8 %8.7% as compared to the regions’ 20202021 production of 3,023.72,848.2 million cubic feet per day. In 2021,2022, the Southern region produced 936.61,174.3 million cubic feet per day of natural gas, or 20.1 %25.0% of our total natural gas production, an increase of 8.4 %25.4% as compared to the region’s 20202021 production of 863.7936.6 million cubic feet per day. In 2021,2022, the Northern region produced 885.7917.4 million cubic feet per day of natural gas, or 19.0 %19.5% of our total natural gas production, an increase of 1.3 %3.6% as compared to the region’s 20202021 production of 874.1885.7 million cubic feet per day.
Our average natural gas production decreasedincreased by 1.9%0.5% in 2021,2022, from 4,761.6 million cubic feet per day in 2020 to 4,670.5 million cubic feet per day in 2021.2021 to 4,692.8 million cubic feet per day in 2022. Natural gas production associated with crude oil production accounted for 78.2%75.3% of total natural gas production in 2021,2022, with the remainder of natural gas production consisting of extraction from
fields holding natural gas reserves. As of December 31, 2021, 1512022, 197 of our 323326 gas producing fields, or 46.7%57.6%, produced21.8 %24.7% of all of our natural gas production in 2021.2022.
non-associated
gas. Thesenon-associated
gas fields accounted for Investments in Exploration and Production
In nominal peso terms, our capital expenditures for exploration and production were Ps. 161,838 million in 2022, as compared to Ps. 134,369 million in 2021, as compared to Ps. 107,149 million in 2020, representing an increase of 25.4%20.4%. Of our total capital expenditures, (i) Ps. 17,75324,238 million was directedallocated to thefields, (ii) Ps. 10,5957,509 million was directedallocated to theEk-Balam, (iii) Ps. 5,691 million was allocated to Cuenca de Veracruz, (iv) Ps. 4,692 million was allocated to Integral Yaxché, (iii)(v) Ps. 8,4983,239 million was directedallocated to theEk-Balam,(iv) Ps. 5,316 million was directed to the Chuc, (v) Ps. 4,866 million was directed to the Cantarell, (vi) Ps. 3,8822,772 million was directedallocated to the Cuenca de Veracruz,Jujo-Tecominoacán, (vii) Ps. 1,8872,156 million was directedallocated to theOgarrio-SánchezMagallanes,Antonio J. Bermúdez, (viii) Ps. 1,6062,155 million was directedallocated to theChuc, (ix) Ps. 1,983 million was allocated to Cactus-Sitio Grande (ix) Ps. 1,550and (x) Ps.1,854 million was directedallocated to the El Golpe-Puerto Ceiba, and (x) Ps. 1,310 million was directed to the Delta del Grijalva. During 2021,Crudo Ligero Marino. The expenditures for these ten projects amounted Ps. 57,26356,289 million, which represented 42.6%34.8% of our capital expenditures in exploration and production. In addition, we invested Ps 57,405 million in new fields under construction and development (35.5% of the total). The remaining 57.4%29.7% amounted to Ps. 77,10648,142 million in nominal terms, which was directed to the 1413 remaining projects, as well as to other exploratory projects, 22 new development projects andexploration, drilling and services projects.
Ku-Maloob-Zaap
Exploration and Production Capital Expenditures and Budget
For 2022,2023, our total capital expenditures budget is Ps. 208,852239,928 million, as compared to Ps. 134,369161,838 million of capital expenditures made in 2021,2022, representing an increase of 55.4%, largely with a view of reaching48.3%. This increase reflects our objectives of stoppingcommitment to stop and reversingreverse the decline in our reserves and production, and accelerating theas well as to accelerate development of discoverednew fields. The 2022Our 2023 budget includes Ps. 90,001 for108,580 allocated to all of the 23 ongoing strategic exploration and production projects, an additional Ps. 45,01487,184 million allocated to benew fields under development, Ps. 42,947 million allocated to other exploratory projects, Ps. 72,439 million to be allocated to other developmentexploration projects, and Ps. 1,3981,218 million for otherallocated to drilling activities and services activities.services. Of our 2022 capital expenditurestotal exploration and production investment budget for 2023, Ps. 156,522191,935 million, or 74.9%, is to be allocated to projects relating to field development and pipelines and Ps. 52,330 million, or 25.1%,approximately 80% of the total, budget,is allocated to investments in fields and development projects. The remaining Ps. 47,993 million, or approximately 20% of the total, is allocated to exploration activities.
The 20222023 exploration and production budget includes (i) Ps. 28,49244,399 million for investments in theproject, (ii) Ps. 10,57814,011 million for theproject, (iii) Ps. 8,3469,250 million for theinvestments in Integral Yaxché, (iv) Ps. 6,901 million for investments in Cuenca de Veracruz, project, (iv)(v) Ps. 5,5484,330 million for the Integral Yaxché project, (v)investments in Jujo-Tecominoacán, (vi) Ps. 4,9193,696 million for theOgarrio-SánchezMagallanes project, (vi)investments in Chuc, (vii) Ps. 4,0183,281 million for the Jujo-Tecominoacán project, (vii)investments in Cantarell (viii) Ps. 4,0002,936 million for the Chuc project, (viii)investments in Ogarrio-Sanchez Magallanes, (ix) Ps. 3,4132,867 million for the Cantarell project, (ix) Ps. 3,231 million forinvestments in Antonio J. Bermúdez project, and (x) Ps. 2,5342,741 million for theTsimin-Xuxproject.investments in Bellota-Chinchorro. These 10 projects totaled Ps. 75,07994,412 million, Ps. 87,184 million of which were allocated to development of new fields and Ps. 133,77358,332 million forwere allocated to the remaining projects, as well as forincluding other exploratorystrategic and developmentexploration projects and those with drilling and services purposes for development activities.
Ku-Maloob-Zaap,
investments in Ek-Balam,
Exploration and Production Investment Trends
In 2021,nominal terms, we invested Ps. 32,24143,028 million in nominal terms, or 24.0%exploration activities during 2022, which represented 26.6% of the total capital expenditures of our exploration and production segment, in exploration activities.business segment. This represented a 44.6%33.5% increase from the Ps. 22,29832,241 million invested in exploration activities in 2020.2021. In 2021,2022, we invested Ps. 102,128118,810 million in nominal terms, or 76.0%73.4% of our total capital expenditures in development activities. This represented a 20.4%16.3% increase from the Ps. 84,851102,128 million invested in development activities in 2020.
2021.Our projected exploration and development capital expenditures correspond to the areas assigned to us through bidding rounds, which represent the areas in which we are exploring, operating or have an interest in developing based on our operational capabilities. The SENERMinistry of Energy granted us the right to explore and develop these areas with the aimobjective of maintaining our production levels in the short term, while providing us with sufficient exploration opportunities to increase our production in the future. Given that a significant number of exploration areas are reserved by
the Mexican Government for potential future competitive bidding rounds, we intend to carry out our strategy of increasing production and improving our RRR over time by entering into strategic joint ventures with other oil and gas companies.companies During 2021, in accordance with our Business Plan 2021-2025,2022, we evaluated the use of Integrated Exploration and Extraction Services Contracts (CSIEEs)CSIEEs as a replacement for farm-outs to foster private sector participation in our operations. The CSIEE model seeks to increase production by offering an incentive based on the production received and sharing the risk involved in operations according to the terms of each contract. Each CSIEE contract has a term of between 15 and 25 years. CSIEE contracts are expected to replace farm-outs as a vehicle for private sector participation, although existing farm-outs will remain for the duration of their respective terms. However,Therefore, as of December 31, 2021, no2022, one CSIEE has been entered into. signed. The CSIEE Lakach was executed by Pemex Exploration and Production, as client and the company New Fortress Energy Upstream CO, S. de R.L. de C.V., as contractor on November 21, 2022 and provides the terms for the development, extraction and production of hydrocarbons in the contractual area. Exploration works may also be included, subject to governmental approval.
Over time, the allocation of our capital expenditures budget may change due to several factors, including the results of potential subsequent bidding rounds in which we participate. For more information regarding CSIEEs, see “Item 4 – “Item 4—Exploration and Production – Production—Crude Oil Distribution – Distribution—Farm-outs and CSIEEs.CSIEEs.”
The capital expenditures of our exploration and production segment have constituted 83.2%comprised 78.3% or more of our total capital expenditures in each of the last three years. In 2022,2023, the budgeted capital expenditures budget for our exploration and production segment constitute 92.0%comprised 86.1% of our total capital expenditures.
The following tables sets forth our capital expenditures, excluding2021,2022, and the budget for 2022.2023. Capital expenditure amounts are derivedderive from our budgetary records, which are prepared on a cash basis. Accordingly, these capital expenditure amounts do not correspond to capital expenditure amounts included in our consolidated financial statements prepared in accordance with IFRS.
non-capitalizable
maintenance, related to exploration and development for each of the three years ended December 31, Exploration and Development Capital Expenditures
Year ended December 31,(1) | Budget 2023(2) | |||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||
(in millions of pesos) (3) | ||||||||||||||
| Exploration | Ps. | 43,028 | Ps. | 32,241 | Ps. | 22,298 | Ps. | 47,993 | ||||||
| Development | 118,810 | 102,128 | 84,851 | 191,935 | ||||||||||
| Total | Ps. | 161,838 | Ps. | 134,369 | Ps. | 107,149 | Ps. | 239,928 | ||||||
_______________
Year ended December 31, (1) | Budget 2022 (3) | |||||||||||||||
2021 | 2020 | 2019 (2) | ||||||||||||||
(in millions of pesos) (4) | ||||||||||||||||
Exploration | Ps. 32,241 | Ps. 22,298 | Ps. 21,992 | Ps. 52,330 | ||||||||||||
Development | 102,128 | 84,851 | 76,771 | 156,522 | ||||||||||||
Total | Ps. 134,369 | Ps. 107,149 | Ps. 98,763 | Ps. 208,852 | ||||||||||||
Note: Numbers may not total due to rounding.
(1)Amounts based on cash basis method of accounting.
(2)Amended budget was authorized on January 31, 2023. The original budget was published in the Official Gazette of the Federation on November 28, 2022.
(3)Figures are stated in nominal pesos.
Source: Pemex Exploration and Production
Investments and Production by Project
We conduct exploration, production and development activities in fields throughout Mexico. Our ten projects of 2022 with morethe most capital expenditures in 2021 are:Integral Yaxché,Chuc, Cantarell, Cuenca de Veracruz,Ogarrio-SánchezMagallanes, Integral Yaxché, Cantarell, Jujo-Tecominoacán, Antonio J. Bermúdez, Chuc, Cactus-Sitio Grande El Golpe-Puerto Ceiba and Delta del Grijalva. The detail ofCrudo Ligero Marino. Our investments in Pemex Exploration and Productionthese projects are described below.
were: Ku-Maloob-Zaap,
Ek-Balam,
Exploration and Production’s Capital Expenditures
Year ended December 31,(1) | Budget 2023(2) | |||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||
(in millions of pesos)(3) | ||||||||||||||
| Exploration and Production | ||||||||||||||
| Ku-Maloob-Zaap | 24,238 | 17,753 | 18,541 | 44,399 | ||||||||||
| Ek-Balam | 7,509 | 8,498 | 8,045 | 14,011 | ||||||||||
| Cuenca de Veracruz | 5,691 | 3,882 | 3,112 | 6,901 | ||||||||||
| Integral Yaxché | 4,692 | 10,595 | 6,239 | 9,250 | ||||||||||
| Cantarell | 3,239 | 4,866 | 2,637 | 3,281 | ||||||||||
| Jujo-Tecominoacán | 2,772 | 776 | 241 | 4,330 | ||||||||||
| Antonio J. Bermúdez | 2,156 | 1,267 | 2,434 | 2,867 | ||||||||||
| Chuc | 2,155 | 5,316 | 5,833 | 3,696 | ||||||||||
| Cactus-Sitio Grande | 1,983 | 1,606 | 1,605 | 2,067 | ||||||||||
| Crudo Ligero Marino | 1,854 | 387 | 1,002 | 2,216 | ||||||||||
| Ogarrio-Sánchez Magallanes | 1,741 | 1,887 | 1,235 | 2,936 | ||||||||||
| El Golpe-Puerto Ceiba | 1,277 | 1,550 | 1,661 | 1,379 | ||||||||||
| Delta del Grijalva | 1,148 | 1,310 | 1,235 | 741 | ||||||||||
| Aceite Terciario del Golfo | 1,140 | 780 | 681 | 2,513 | ||||||||||
| Bellota-Chinchorro | 1,134 | 1,186 | 918 | 2,741 | ||||||||||
| Lakach | 664 | 347 | 51 | 689 | ||||||||||
| Ixtal-Manik | 471 | 988 | 730 | 913 | ||||||||||
| Tsimin-Xux | 465 | 707 | 1,352 | 639 | ||||||||||
| Burgos | 435 | 587 | 535 | 1,503 | ||||||||||
| Integral Poza Rica | 255 | 723 | 437 | 1,010 | ||||||||||
| Tamaulipas-Constituciones | 170 | 692 | 2,600 | 330 | ||||||||||
| Cuenca de Macuspana | 16 | 51 | 93 | 116 | ||||||||||
| Costero Terrestre | 3 | 13 | 57 | 52 | ||||||||||
| Arenque | — | 1 | 2 | — | ||||||||||
| Other Exploratory Projects | 38,005 | 28,652 | 19,777 | 42,946 | ||||||||||
| Other Development Projects | 57,405 | 38,729 | 24,826 | 87,184 | ||||||||||
| Quesqui | 12,907 | 4,138 | 229 | 11,491 | ||||||||||
| Pokche | 9,895 | 245 | — | 7,855 | ||||||||||
| Teca | 5,124 | 1,140 | — | 7,922 | ||||||||||
| Ixachi | 5,017 | 5,379 | 1,592 | 19,002 | ||||||||||
| Mulach | 3,379 | 1,937 | 2,952 | 9,343 | ||||||||||
| Teekit Profundo | 3,173 | 1,165 | 245 | 2,577 | ||||||||||
| Koban | 2,615 | 3,361 | 1,208 | 954 | ||||||||||
| Uchbal | 2,550 | 1,471 | 90 | 1,315 | ||||||||||
| Suuk | 2,519 | 831 | 808 | 1,999 | ||||||||||
| Tupilco Profundo | 1,991 | 7,848 | ||||||||||||
| Itta | 1,833 | 2,219 | 127 | 5,571 | ||||||||||
| Tlamatini | 1,706 | 2,433 | 260 | 1,778 | ||||||||||
| Tetl | 1,129 | 2,590 | 1,206 | 1,102 | ||||||||||
| Tlacame | 918 | 2,259 | 2,736 | 1,809 | ||||||||||
| Cibix | 745 | 458 | 38 | 1,279 | ||||||||||
| Esah | 610 | 233 | 591 | 2,064 | ||||||||||
| Manik NW | 696 | 2,384 | 932 | — | ||||||||||
| Octli | 404 | 2,384 | 1,763 | 39 | ||||||||||
| Cahua | 50 | 974 | 3,447 | 13 | ||||||||||
| Cheek | 48 | 1,242 | 2,182 | 255 | ||||||||||
| Xikin | 48 | 534 | 2,857 | 310 | ||||||||||
| Hok | 28 | 1,351 | 1,563 | 93 | ||||||||||
| Racemosa | 20 | — | — | 1,395 | ||||||||||
| Chocol | — | 1 | — | — | ||||||||||
| Paki | — | — | — | 589 | ||||||||||
| Kayab | — | — | — | 268 | ||||||||||
| Pit | — | — | — | 230 | ||||||||||
| Tlalkivak | — | — | — | 83 | ||||||||||
| Drilling and Services | 1,220 | 1,220 | 1,270 | 1,218 | ||||||||||
| Total | Ps. | 161,838 | Ps. | 134,369 | Ps. | 107,149 | Ps. | 239,928 | ||||||
_______________
Year ended December 31, (1) | Budget 2022 (2) | |||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
(in millions of pesos) (3) | ||||||||||||||||
Exploration and Production | ||||||||||||||||
Ku-Maloob-Zaap | Ps. 17,753 | Ps. 18,541 | Ps. 17,560 | Ps. 28,492 | ||||||||||||
Integral Yaxché | 10,595 | 6,239 | 5,592 | 5,548 | ||||||||||||
Ek-Balam | 8,498 | 8,045 | 8,888 | 10,578 | ||||||||||||
Chuc | 5,316 | 5,833 | 10,711 | 4,000 | ||||||||||||
Cantarell | 4,866 | 2,637 | 2,342 | 3,413 | ||||||||||||
Cuenca de Veracruz | 3,882 | 3,112 | 2,110 | 8,346 | ||||||||||||
Ogarrio-Sánchez Magallanes | 1,887 | 1,235 | 1,092 | 4,919 | ||||||||||||
Cactus-Sitio Grande | 1,606 | 1,605 | 1,377 | 2,424 | ||||||||||||
El Golpe-Puerto Ceiba | 1,550 | 1,661 | 902 | 2,182 | ||||||||||||
Delta del Grijalva | 1,310 | 1,235 | 958 | 1,874 | ||||||||||||
Antonio J. Bermúdez | 1,267 | 2,434 | 3,166 | 3,231 | ||||||||||||
Bellota-Chinchorro | 1,186 | 918 | 1,646 | 1,857 | ||||||||||||
Ixtal-Manik | 988 | 730 | 1,922 | 492 | ||||||||||||
Aceite Terciario del Golfo | 780 | 681 | 758 | 1,559 | ||||||||||||
Jujo-Tecominoacán | 776 | 241 | 405 | 4,018 | ||||||||||||
Integral Poza Rica | 723 | 437 | 491 | 988 | ||||||||||||
Year ended December 31, (1) | Budget 2022 (2) | |||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
(in millions of pesos) (3) | ||||||||||||||||
Tsimin-Xux | 707 | 1,352 | 803 | 2,534 | ||||||||||||
Tamaulipas-Constituciones | 692 | 2,600 | 1,232 | 632 | ||||||||||||
Burgos | 587 | 535 | 243 | 1,453 | ||||||||||||
Crudo Ligero Marino | 387 | 1,002 | 3,715 | 1,008 | ||||||||||||
Lakach | 347 | 51 | 56 | 296 | ||||||||||||
Cuenca de Macuspana | 51 | 93 | 125 | 56 | ||||||||||||
Costero Terrestre | 13 | 57 | 83 | 101 | ||||||||||||
Arenque | 1 | 2 | 40 | — | ||||||||||||
Other Exploratory Projects | 28,650 | 19,779 | 20,550 | 45,014 | ||||||||||||
Other Development Projects | 38,731 | 24,827 | 11,324 | 72,439 | ||||||||||||
Ixachi | 5,379 | 1,592 | 436 | 8,722 | ||||||||||||
Quesqui | 4,138 | 229 | — | 15,062 | ||||||||||||
Koban | 3,361 | 1,208 | 174 | 2,797 | ||||||||||||
Tetl | 2,590 | 1,206 | 728 | 812 | ||||||||||||
Tlamatini | 2,433 | 260 | — | 2,380 | ||||||||||||
Octli | 2,384 | 1,763 | 505 | 329 | ||||||||||||
Manik NW | 2,384 | 932 | 149 | 792 | ||||||||||||
Tlacame | 2,259 | 2,736 | 30 | 1,255 | ||||||||||||
Itta | 2,219 | 127 | — | 3,273 | ||||||||||||
Mulach | 1,937 | 2,952 | 64 | 2,665 | ||||||||||||
Uchbal | 1,471 | 90 | 0 | 4,307 | ||||||||||||
Hok | 1,351 | 1,563 | 40 | 158 | ||||||||||||
Cheek | 1,242 | 2,182 | 44 | 505 | ||||||||||||
Teekit Profundo | 1,165 | 245 | 566 | 3,564 | ||||||||||||
Teca | 1,140 | — | — | 6,879 | ||||||||||||
Cahua | 974 | 3,447 | 66 | 50 | ||||||||||||
Suuk | 831 | 808 | 637 | 3,102 | ||||||||||||
Xikin | 534 | 2,857 | 6,210 | 292 | ||||||||||||
Cibix | 458 | 38 | — | 987 | ||||||||||||
Pokche | 245 | — | — | 10,172 | ||||||||||||
Esah | 233 | 591 | 1,675 | 2,325 | ||||||||||||
Chocol | 1 | — | — | — | ||||||||||||
Racemosa | — | — | — | 1,768 | ||||||||||||
Kayab | — | — | — | 176 | ||||||||||||
Pit | — | — | — | 16 | ||||||||||||
Paki | — | — | — | 50 | ||||||||||||
Drilling and Services (4) | 1,220 | 1,270 | 672 | 1,398 | ||||||||||||
Total | Ps. 134,369 | Ps. 107,149 | Ps. 98,763 | Ps. 208,852 | ||||||||||||
Notes: Numbers may not total due to rounding.
(1)Amounts based on cash basis method of accounting.
(2)Amended budget was authorized on January 31, 2023. The original budget was published in the Official Gazette of the Federation on November 28, 2022.
(3)Figures are stated in nominal pesos.
Source: Petróleos Mexicanos.
Ku-Maloob-Zaap
In nominal peso terms, our exploration and production segment’s capital expenditures for this project were Ps. 18,541 million in 2020 andamounted to Ps. 17,753 million in 2021.2021 and Ps. 24,238 million in 2022. Our total accumulated capital expenditures for theKu-Maloob-Zaapthis project were U.S. $28.4$29.7 billion as of December 31, 2021. For 2022, we2022. We expect that our capital expenditures for this project will total Ps. 28,492 million.44,399 million in 2023.
In 2021,2022, we paid U.S. $41.0$44.1 million to acquire 106.2102.4 billion cubic feet of nitrogen for the pressure maintenance project in the fifth module of the Cantarell nitrogen cryogenic plant. For 2022,2023, we expect to spend U.S. $42.2$42.3 million to acquire 103.2110.9 billion cubic feet of nitrogen for injection into the
Ku-Maloob-Zaap
fields.As of December 31, 2021,2022, cumulative production totaled 0.2 billion barrels of crude oil and 1.3 trillion cubic feet of natural gas. Total proved reserves were 45.5amounted to 52.4 million barrels of oil equivalent, all of which all were proved developed reserves.
In nominal peso terms, our exploration and production segment’s capital expenditures for theTsimín-Xuxthis project were Ps. 1,352 million in 2020 and Ps. 707 million in 2021.2021 and Ps. 465 million in 2022. Our total accumulated capital expenditures for theTsimín-Xuxthis project were U.S. $324.5$347.6 million as of December 31, 2021. For 2022, we2022. We expect that our capital expenditures for this project will total Ps. 2,534 million.639 million in 2023.
Chuc Project
In nominal peso terms, our exploration and production segment’s capital expenditures for the Chucthis project were Ps. 5,833 million in 2020 andamounted to Ps. 5,316 million in 2021.2021 and Ps. 2,155 million in 2022. Our total accumulated capital expenditures for the Chucthis project were U.S. $8.3$8.4 billion as of December 31, 2021. For 2022, we2022. We expect that our capital expenditures for this project will total Ps. 4,000 million.
3,696 million in 2023.Cantarell Project.
As of December 31, 2021,2022, the cumulative production of the Cantarell project wasamounted to 14.4 billion barrels of crude oil and 11.411.7 trillion cubic feet of natural gasgas. As of December 31, 2021,2022, Cantarell's proved oil and gas reserves of the Cantarell project totaled 577.3amounted to 403.3 million barrels of crude oil and 702.9477.1 billion cubic feet of natural gas. As of December 31, 2021,2022, total proved reserves were 683.8amounted to 475.0 million barrels of oil equivalent, all of which 683.8 million barrels were proved developed reserves.
The Akal field, which is the most important field in the Cantarell, project, averaged 36.629.3 thousand barrels per day of crude oil production during 2021.2022. This was 10.8%19.9% less than the average production in 2020,2021, which was 41.0amounted to 36.6 thousand barrels per day.
In nominal peso terms, our exploration and production segment’s capital expenditures for the Cantarell project totaled Ps. 2,637 million in 2020 andamounted to Ps. 4,866 million in 2021.2021 and Ps. 3,239 million in 2022. Our total accumulated capital expenditures for the Cantarellthis project were U.S. $42.0$42.1 billion as of December 31, 2021. For 2022, we2022. We expect that our capital expenditures for this project will total Ps. 3,413 million.
3,281 million in 2023.On October 10, 1997, we awarded acontract for a nitrogen cryogenic plant at the Cantarell project to a consortium formed by BOC Holdings, Linde, Marubeni, West Coast Energy and ICA Fluor Daniel. Under this contract, the consortium is responsible for the financing, design, construction and operation of the plant. The plant began operations in 2000 and cost Ps. 10,131 million. Pursuant to the terms of the agreement, Pemex Exploration and Production has the right to acquire the nitrogen plant in the case of a default by the consortium. Pemex Exploration and Production has the obligation to acquire the nitrogen plant if it defaults under the contract. Under the terms of the contract, Pemex Exploration and Production committed to purchasing 1.2 billion cubic feet per day of nitrogen from the consortium and to continue to supply service through June 2027.
build-own-operate
During 2021,2022, we paid U.S. $196.3$194.3 million under this contract for an approximate total volume of 416.9402.2 billion cubic feet of nitrogen, which was injected into the Cantarell fields. In 2022,2023, our exploration and production segment expects to pay U.S. $194.8$195.8 million under this contract for an approximate total volume of 407.4429.7 billion cubic feet of nitrogen to be injected into the fields.
Crudo Ligero Marino Project.
2022, a total of 102 wells had been completed at this project, of which 2827 were producing. During 2021,2022, average daily production totaled 39.5amounted to 36.2 thousand barrels of crude oil and 125.3112.0 million cubic feet of natural gas. As of December 31, 2021,2022, cumulative production was 955.5amounted to 968.7 million barrels of crude oil and 2,765.32,806.2 billion cubic feet of natural gas. Proved oil and gas reserves totaled 47.8amounted to 47.4 million barrels of crude oil and 167.2131.8 billion cubic feet of natural gas. Total proved reserves were 79.6amounted to 69.8 million barrels of oil equivalent, all of which 79.6 million barrels were proved developed reserves.
In nominal peso terms, our exploration and production segment’s capital expenditures for the Crudo Ligero Marino project totaled Ps. 1,002 million in 2020 andamounted to Ps. 387 million in 2021. Our2021 and Ps. 1,854 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for the Crudo Ligero Marinothis project were U.S. $721.7 million as of December 31, 2021. For 2022, we$813.8 million. We expect our capital expenditures for this project will total Ps. 1,008 million.
2,216 million in 2023.10-
and50-meter
isobaths, approximately 14 kilometers from the Dos Bocas Maritime Terminal in Paraíso, Tabasco and 154 kilometers to the southwest of Ciudad del Carmen, Campeche. During As of December 31, 2021,2022, cumulative production totaled 503.3 billion550.7 million barrels of crude oil and 343.8 trillion376.7 billion cubic feet of natural gas. Proved oil and gas reserves totaled 109.2256.0 million barrels of crude oil and 68.3114.3 billion cubic feet of natural gas. Total proved reserves were 117.6amounted to 269.1 million barrels of oil equivalent, of which 117.6129.3 million barrels of oil equivalent were proved developed reserves.
In nominal peso terms, our capital expenditures for the Integral Yaxché project were Ps. 6,239 million in 2020 andamounted to Ps. 10,595 million in 2021. Our2021 and Ps. 4,692 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for the Integral Yaxchéthis project were U.S. $5.5 billion as of December 31, 2021. For 2022, we$5.7 billion. We expect that our capital expenditures for this project will total Ps. 5,548 million.
9,250 million in 2023. Project Ogarrio-Sánchez
Magallanes Ogarrio-Sánchez
MagallanesAs of December 31, 2021, theproject had 249257 producing wells, 2with five new wells were completed during 2021.2022. Average daily production totaled 30.5amounted to 28.3 thousand barrels of crude oil and 36.340.3 million cubic feet of natural gas during 2021.2022. As of December 31, 2021,2022, cumulative production wasamounted to 1.3 billion barrels of crude oil and 2.0 trillion cubic feet of natural gas. Proved hydrocarbon reserves totaled 62.2amounted to 60.4 million barrels of crude oil and 126.8117.9 billion cubic feet of natural gas. Total proved reserves were 83.3amounted to 75.2 million barrels of oil equivalent, of which 63.6 million barrels were proved developed reserves.
2022, Ogarrio-Sánchez
Magallanes In nominal peso terms, our capital expenditures for theproject were Ps. 1,235 million in 2020 andamounted to Ps. 1,887 million in 2021. Our2021 and Ps. 1,741 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for theOgarrio-SánchezMagallanesthis project were U.S. $352.0 million as of December 31, 2021. For 2022, we$438.5 million. We expect that our capital expenditures for this project will total Ps. 4,919 million.2,936 million in 2023.
Ogarrio-Sánchez
Magallanes Antonio J. Bermúdez Project.
In nominal peso terms, our exploration and production segment’s capital expenditures for the Antonio J. Bermúdez project wereamounted to Ps 2,434 million in 2020 and Ps. 1,267 million in 2021. Our2021 and Ps. 2,156 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for the Antonio J. Bermúdezthis project were U.S. $9.6 billion as of December 31, 2021. For 2022, we$9.7 billion. We expect that our capital expenditures for this project will total Ps. 3,231 million.
2,867 million in 2023.Burgos Project.
non-associated
gas in Mexico. The purpose of During 2021, the2022, Burgos project produced an average of 444.5414.8 million cubic feet per day of natural gas. In 2021, 102022, 21 new wells were completed at the Burgosthis project, bringing our total completed wells drilled to 8,014 and 2,3528,035, 2,312 of which were producing. The most important fields are the Nejo, Arcabuz, Culebra, Cuitláhuac, Cuervito, Velero and Santa Anita, fields, which together produced 47.9%47.7% of the total production of the Burgos project in 2021.
2022.Main Fields of theProject Burgos Project
(1)
(as of December 31, 2021)
Nejo | Arcabuz- Culebra | Cuitláhuac | Velero | Cuervito | Santa Anita | Nejo | Arcabuz- Culebra | Cuitláhuac | Velero | Cuervito | Santa Anita | |||||||||||||||||||||||||||||||||
Wells completed | 436 | 979 | 448 | 221 | 139 | 84 | Wells completed | 439 | 982 | 448 | 221 | 148 | 86 | |||||||||||||||||||||||||||||||
Producing wells | 127 | 457 | 191 | 132 | 91 | 60 | Producing wells | 125 | 464 | 195 | 129 | 108 | 53 | |||||||||||||||||||||||||||||||
2020 production of natural gas (million cubic feet per day) | 31.9 | 68.0 | 49.2 | 26.2 | 18.7 | 18.8 | ||||||||||||||||||||||||||||||||||||||
| 2022 production of natural gas (million cubic feet per day) | 2022 production of natural gas (million cubic feet per day) | 31.7 | 60.3 | 51.3 | 23.7 | 26.0 | 4.9 | |||||||||||||||||||||||||||||||||||||
Cumulative production of natural gas (billion cubic feet) | 659.8 | 2,180.4 | 877.3 | 388.9 | 232.9 | 294.3 | Cumulative production of natural gas (billion cubic feet) | 671.3 | 2,202.5 | 896.1 | 397.5 | 242.3 | 296.1 | |||||||||||||||||||||||||||||||
Proved reserves of natural gas (billion cubic feet) | 73.5 | 63.9 | 151.6 | 35.5 | 97.3 | 6.6 | Proved reserves of natural gas (billion cubic feet) | 93.8 | 65.7 | 172.6 | 39.5 | 84.4 | 7.9 | |||||||||||||||||||||||||||||||
Proved developed reserves | 12.7 | 63.9 | 98.7 | 35.5 | 34.8 | 6.6 | Proved developed reserves | 30.8 | 65.7 | 118.5 | 32.7 | 31.7 | 7.9 | |||||||||||||||||||||||||||||||
Proved undeveloped reserves | 60.8 | 0 | 52.9 | 0 | 62.5 | 0 | Proved undeveloped reserves | 63.0 | — | 54.1 | 6.8 | 52.6 | — | |||||||||||||||||||||||||||||||
(1)This table considers natural gas production and reserves corresponding exclusively to Pemex Exploration and Production.
Source: Pemex Exploration and Production.
During 2021,2022, proved reserves decreasedincreased by 53.46.3 million barrels of oil equivalent, from 171.9 million barrels of oil equivalent in 2020 to 118.5 million barrels of oil equivalent in 2021 Dueto 124.8 million barrels of oil equivalent in 2022. This increase was primarily due to the decreaseincrease in production of certain fields in the Burgos project as well as the movement of some proven undeveloped locations to probable locations.Burgos.
In nominal peso terms, our exploration and production segment’s capital expenditures (including capital expenditures made pursuant to Financed Public Works Contracts, or FPWCs) for the Burgos project were Ps. 535 million in 2020 andamounted to Ps. 587 million in 2021. Our2021 and Ps. 435 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for the Burgosthis project were U.S. $20.6 billion as of December 31, 2021. For 2022, webillion. We expect that our capital expenditures for this project will total Ps. 1,453 million.
1,503 million in 2023.Aceite Terciario del Golfo Project (ATG Project,(Project ATG, formerly Paleocanal de Chicontepec).
During 2021,2022, field development activities at the project included the drilling of 1924 new wells and the completion of 1924 wells, all 19 of which were classified as producing, reflecting a 100% success rate.producing. As of December 31, 2021, 93.7%2022, 92.7% of the total producing wells were operating with artificial systems such as mechanical, pneumatic, hydraulic and electric pumping, while the remaining 6.3%7.3% were “flowing wells” that are classified accordingly because they did not require any means of artificial lift.
In nominal peso terms, our exploration and production segment’s capital expenditures for theProject ATG project were Ps. 681 million in 2020 andamounted to Ps. 780 million in 2021. Our2021 and Ps. 1,140 million in 2022. As of December 31, 2022, our total accumulated capital expenditures for the ATGthis project were U.S. $13.3 billion as of December 31, 2021. For 2022, we$13.4 billion. We expect that our capital expenditures for this project will total Ps. 1,559 million.2,513 million in 2023.
Crude Oil Sales
During 2021,2022, domestic consumption of crude oil amounted to 716.9826.8 thousand barrels per day, which represented 41.3%46.9% of our total crude oil production. Through PMI’s activities, we sold the remainder of our crude oil production abroad. Maya crude oil accounted for 78.2%67.1% of exported crude oil volume sold by PMI in 2021.2022. See “—“—Business Overview—International Trading”Trading” in this Item 4.
The following table sets forth crude oil distribution for the past five years.
Crude Oil Distribution
| At December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||
| (in thousands of barrels per day) | (%) | |||||||||||||||||||
| Production | 1,764.2 | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1.6 | ||||||||||||||
| Distribution | ||||||||||||||||||||
| Refineries | 826.8 | 716.9 | 601.7 | 576.8 | 606.4 | 15.3 | ||||||||||||||
| Export terminals | 953.1 | 1,017.0 | 1,124.4 | 1,102.5 | 1,186.9 | (6.3) | ||||||||||||||
| Total | 1,779.9 | 1,733.9 | 1,726.1 | 1,679.3 | 1,793.3 | 2.7 | ||||||||||||||
Statistical differences in stock measurements(1) | (15.7) | 1.8 | (39.8) | 4.5 | 29.2 | (972.2) | ||||||||||||||
_______________
At December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in thousands of barrels per day) | (%) | |||||||||||||||||||||||
Production | 1,735.7 | 1,686.3 | 1,683.8 | 1,822.5 | 1,948.3 | 2.9 | ||||||||||||||||||
Distribution | ||||||||||||||||||||||||
Refineries | 716.9 | 601.7 | 576.8 | 606.4 | 769.0 | 19.1 | ||||||||||||||||||
Export terminals | 1,017.0 | 1,124.4 | 1,102.5 | 1,186.9 | 1,167.8 | (9.6 | ) | |||||||||||||||||
Total | 1,733.9 | 1,726.1 | 1,679.3 | 1,793.3 | 1,936.7 | 0.5 | ||||||||||||||||||
Statistical differences in stock measurements (1) | 1.8 | (39.8 | ) | 4.5 | 29.2 | 11.6 | (104.5 | ) | ||||||||||||||||
Note: Numbers may not total due to rounding.
(1)Includes measurement inconsistencies, shrinkage and leakage, naphthas and condensates added to crude oil.
Source: Pemex Exploration and Production.
Gas Flaring
addition, the flaringburning of produced gasgases is usuallyalso used as a safety measure, to relievereleasing high gas pressure, as a result ofpressures caused by interruptions in the interruption of processing due to separation,conditioning, handling and transportation.
transportation processes.The flaringburning of gasgases is considered the most significant atmospheric emission from offshore oil and gas facilities.facilities into the atmosphere. In 2020, the flaring of natural gas2022 this represented 10.8%7.8% of total natural gas production, compared to 4.8% of total natural gas production. In 2021 this represented theup from 12.1% of total natural gas production, compared to 10.8% of total natural gas production in 2020.2021. The increase in gas flaring in 2021,decrease was primarilymainly due to an event which occurred atE-Ku-A2platform, causing damage to the compression equipment resulting in a decrease in handling capacityexecution of natural gas, as well as the lack of infrastructure to transport the Quesqui field production and infrastructure to process the Ixachi field gas.
Pipelines
The crude oil and natural gas pipeline network owned by our exploration and production segment connects crude oil and natural gas producing centers with refineries and petrochemical plants. At the end of 2021,2022, this pipeline network consisted of approximately 36,40036,223 kilometers of pipelines, of which 2,060 kilometers were located in the Northeast Marine region, 1,508 kilometers were located in the Southeast Marine region, 8,2938,118 kilometers were located in the Southern region, 24,53824,537 kilometers were located in the Northern region. For a description of products transported by the pipeline network, see “—“—Business Overview—Logistics”Logistics” in this Item 4.
Integrated Exploration and Production Contracts, Financed Public Works Contracts (FPWCs) and Integrated Exploration and Extraction Services Contracts (CSIEEs)
Our FPWC program, previously known as the Multiple Services Contracts program, was first announced in December 2001. The objective of the program was to provide a contractual framework that promotes efficient execution of public works in order to increase Mexico’s oil and gas production. These were contracts based on unit prices that aggregate a number of different services into a single contract. Under the FPWC framework, Pemex Exploration and Production retains entitlements for all oil and gas produced as well as works performed under each FPWC.
Our Integrated E&P Contracts program was established as part of reforms to the Mexican energy sector enacted in 2008. The objective of these contracts was to increase our execution and production capabilities. The oil and gas reserves located in and extracted from the areas to which we have a legal right, continue to be owned exclusively by the Mexican Government. Under this program, payments to the contractors were made on a per-barrel basis, plus recovery costs, not exceeding our cash flow from the block.
We may amend our Integrated E&P Contracts and FPWCs in order to align these contracts with the contractual framework established under the Hydrocarbons Law. As part of this reform, existing Integrated E&P Contracts or FPWCs may be migrated into a contract for exploration and extraction upon agreement by the contract parties to the technical guidelines established by the SENERMinistry of Energy (after seeking our favorable opinion) and the financial terms determined by the Ministry of Finance and Public Credit. Upon approval by the contract parties, the existing Integrated E&P Contract or FPWC will be terminated and be replaced by the new contract for exploration and extraction without the need for a bidding process. If the contract parties do not agree to the proposed technical guidelines and contractual and financial terms, the original Integrated E&P Contract or FPWC remains in effect.
As of the date of this annual report, we have migrated three Integrated E&P Contracts to contracts for exploration and extraction:
•On December 18, 2017, the Integrated E&P Contract governing the Santuario and El Golpe blocks was migrated;
•On August 3, 2018, the Integrated E&P Contract governing the Ebano block was migrated; and
•On November 21, 2018, the Integrated E&P Contract governing the Miquetla block was migrated.
In addition, we migrated the FPWCs governing Misión and Olmos blocks on March 2, 2018 and February 22, 2018, respectively, to different contractual frameworks allowed under the Petróleos Mexicanos Law. For more information on the migration of these Integrated E&P Contracts and FPWCs, see “—“—Other Exploration and Production Contracts”Contracts” below.
As of the date of this annual report, we are pursuing integration of the technical and economic components of our Integrated E&P Contracts and FPWCs in order to execute extraction activities under the CSIEEs. The implementation of CSIEEs was part of our 2019-2023 Business Plan, see “Item 5— Overview— Business Plan,” which was replaced on March 22, 2021, when our Board of Directors approved the business plan of Petróleos Mexicanos and its Subsidiary Productive Companies for 2021-2025. All of these contracts are relatively low risk for proven and probable reserves, and some also have an exploration component.
Additionally, we are negotiating with third-party contractors potential changes from our current contracts to contracts conforming to CSIEE-type terms. Examples of these negotiations include the FPWCs that govern the Nejo, Soledad, San Andrés, Altamira, Tierra Blanca and Pitepec blocks, all of which were previously evaluated to be migrated to contracts for exploration and extraction under the Hydrocarbons Law.
The goal of these contract amending agreements strategy is to increase our hydrocarbon production and to meet our reserve replacement objectives at competitive costs. As of the date of this annual report, we have not amended any agreement for existing FPWCs or Altamira, Tierra Blanca Integrated E&P Contracts to CSIEEs or similar contracts.
In 2021,2022, natural gas production in the current FPWC blocks reached 32.732.4 million cubic feet per day and condensate production reached 1.0 thousand barrels per day, for a total of 7.6 thousand barrels of oil equivalent per day.
During 2021,2022, contractors expended U.S. $84$125.9 million in connection with Integrated E&P Contracts. In 2021,2022, production in the existing Integrated E&P blocks reached 11.88.9 thousand barrels per day of crude oil and 34.422.1 million cubic feet per day of natural gas, for a total of 18.613.4 thousand barrels of oil equivalent per day.
Farm-outs and CSIEEs
Through farm-outs, we sell a partial interest in fields that have been granted to us and enter into agreements for the joint operation of such fields. This requires third parties to make financial contributions to the partnership and to provide field services, allowing us to recoup some of our previous investments in the fields and to share some of the risk associated with the further development of the fields, while maintaining an interest in the future profits.
On December 11, 2018, the Mexican Government announced the suspension of bidding rounds for exploration and extraction of hydrocarbons contracts for a three-year period in order to evaluate the results and progress of the existing contracts. On June 13, 2019, the Mexican Government announced the suspension of bidding rounds for new farm-outs to provide an opportunity to evaluate the performance of existing farm-outs. The existing farm-outs will continue to operate in accordance with the terms and conditions of their respective contracts. We understand the Mexican Government will use the results of such evaluation to determine whether to pursue farm-outs in the future.
farm-out
arrangements will be maintained for the duration of their respective terms. Trión
Farm-out
On July 28, 2016, the CNHNational Hydrocarbons Commission published the tender offer and bidding package to select a partner for Pemex Exploration and Production to carry out exploration and production activities in the Trión block, which is located in the Perdido Fold Belt in the Gulf of Mexico. Considering that Trión block has a depth greater than 2,500 meters, it requires a high level of technical expertise and financial investment to develop the block.
On December 5, 2016, the CNHNational Hydrocarbons Commission announced that BHP Billiton Petróleo Operaciones de México, S. de R.L. de C.V., or BHP Billiton Mexico, an affiliate of BHP Group Limited and BHP Group Plc, had been selected as the partner for Pemex Exploration and Production in the Trión blockCNHNational Hydrocarbons Commission approved both the exploration and evaluation plans in February 2018. As of December 31, 2021,2022, this
farm-out.
Pursuant to the terms of its bid, BHP Billiton Mexico made a U.S. $789.6 million contribution to the partnership in exchange for a 60% participating interest in the Trión Block. BHP Billiton Mexico is the actual operator of the Trión block and must invest U.S. $1.9 billion in the Triónfarm-out
before we are required to invest in the project, which will likely not occur until 2023. The corresponding exploration and extraction contract, joint operating agreement and other relevant agreements were executed on March 3, 2017, and the farm-out
is in the evaluation stage.The final evaluation report was delivered to the National Hydrocarbons Commission on January 20, 2022. On March 8, 2022, the National Hydrocarbons Commission approved the Declaration of Commerciality of the Trion Field, granting two years to file the Development Plan for Extraction. On June 1, 2022, BHP’s oil and gas portfolio merged with Woodside to create a global top 10 independent energy company by production, the merged business was owned approximately 52% by existing Woodside shareholders and 48% by existing BHP shareholders.
The first exploration period ended on September 29, 2022. On December 16, 2022, the National Hydrocarbons Commission accredited 176,339 work units carried out by the contractor of the 186,150 work units of the evaluation program and evaluation stages.the exploration plan. This farm-out is preparing the development plan, which is expected to be delivered to the National Hydrocarbons Commission in July 2023.
Ogarrio,
Cárdenas-Mora
andAyin-Batsil
Farm-outsIn addition to the TriónCNHNational Hydrocarbons Commission held a bidding round for farm-outs of the Ogarrio, Cárdenas-Mora and Ayin-Batsil blocks. No bids were received for the Ayin-Batsil block, which is located in the shallow waters of the Gulf of Mexico. However, multiple bids were received for the Ogarrio block. The Ogarrio and Cárdenas-Mora blocks, both onshore fields located in the state of Tabasco, were awarded to the German company Deutsche Erdoel AG (DEA), which later formally changed its name to Wintershall México DEA, S. de R.L. de C.V. (WSDM), and the Egyptian company Cheiron Holdings Limited (Cheiron), respectively. DEA’s bid consisted of an initial cash payment of U.S. $190.0 million, a royalty rate of 13% and an additional cash payment of U.S. $213.9 million, which is the highest sign-up bonus submitted in a CNHNational Hydrocarbons Commission bidding round as of the date of this annual report. Cheiron’s bid consisted of an initial cash payment of U.S. $125.0 million, a royalty rate of 13% and an additional cash payment of U.S. $41.5 million. The contracts were signed on March 6, 2018 and have a term of 25 years. We retained a 50% interest in both blocks. The Ogarrio and Cárdenas-Mora fields are currently in the development stage following the approval of the development plan by the CNH in March of 2019.National Hydrocarbons Commission. In 2021,2022, the Ogarrio field produced 5.05.4 thousand barrels of crude oil per day and 15.112.5 million cubic feet per day of natural gas. In 2021,2022, the Cárdenas-Mora block produced 5.45.3 thousand barrels per day of crude oil and 12.211.2 million cubic feet per day of natural gas.
farm-out,
on October 4, 2017, the Other Exploration and Extraction Contracts
In addition to the farm-outs described above, we have also pursued other types of partnerships for the exploration and production of fields that were not granted to us.
On December 5, 2016, we participated in the bidding process referred to as Round 1.4, through which we, as part of a consortium consisting of Pemex Exploration and Production, Chevron Energía de Mexico, S. de R.L. de C.V., or Chevron Energía, a subsidiary of Chevron Corporation, and INPEX Corporation, were awarded an exploration contract for block 3 located in the Perdido Fold Belt in the Gulf of Mexico. The block covers an area of approximately 1,686.9 square kilometers and is located approximately 117 kilometers off the coast of Mexico in water depths ranging between 500 meters and 1,700 meters. Chevron Energía is the operator and holds a 33.334% interest in the consortium, while Pemex Exploration and Production and INPEX Corporation each hold a 33.333% interest. The corresponding exploration and extraction contract, joint operating agreement and other relevant agreements were executed on February 28, 2017. This project is currently in the final stage of its exploration phase. The exploration plan was approved by the CNHNational Hydrocarbons Commission in March of 2018.
The
Ek-Balam
project area is in the Campeche Basin. Its production comes from Ek and Balam fields, specifically from the Upper Oxfordian sands and the Upper Cretaceous fractured carbonates.On May 2, 2017, Pemex Exploration and Production entered into a production-sharing contract of Production Sharing with the CNH,National Hydrocarbons Commission to upgrade the assignments under the shared shallow water production concession structure for the Ek and Balam project area located in Campeche Basin Pemex Exploration and Production provided a guarantee of U.S. $5.0 billion.Basin. Within the framework of the contract, which has a term of 22 years with two possible
five-year
extensions, the Mexican Government will retain 70.5% of the operating profits and Pemex Exploration and Production will retain 29.5% of the operating profits, as long as there is a cost recovery carry forward. Pemex Exploration and Production provided a guarantee of U.S. $5.0 billion in connection with this contract. During 2021,2022, we produced an average of 72.680.3 thousand barrels per day of crude oil and 16.918.5 million cubic feet per day of natural gas.
gas pursuant to such contract.On June 19, 2017, we participated in another bidding round conducted by the CNH,National Hydrocarbons Commission, referred to as Round 2.1. As a result of this bidding process, we won two blocks. We were awarded Block 2, which covers an area of 549 square kilometers and is located on the continental shelf of theTampico--Misantla Tampico-Misantla basin, to the west of the Gulf of Mexico, in partnership with WSDM (f/k/a DEA). We are the operating partner in this block and own a 70% interest. Additionally, we were awarded Block 8, which is in the Southeastern Basins and covers an area of 586 square kilometers, in partnership with Colombia’s Ecopetrol. In Block 8, we are also the operating partner and own a 50% interest. As part of its strategy to optimize its portfolio of exploration projects, Ecopetrol assigned its participation interest to us and on November 22, 2022, the National Hydrocarbons Commission approved the exit of Ecopetrol in this project. The corresponding contracts for the exploration and extraction of hydrocarbons with WSDM and Ecopetrol were signed on
September 25, 2017. The documentation reflecting Ecopetrol's exit from Block 8 is currently being finalized with the National Hydrocarbons Commission. Both blocks are in the exploration phase following approval of the exploration plans by the CNHNational Hydrocarbons Commission in November and October of 2018, respectively.
On December 18, 2017, we executed contracts in association with Petrofac México, S.A. de C.V., or Petrofac, under which we assigned to Petrofac the rights to certain fields that were part of the El Golpe-Puerto Ceiba project, including the onshore fields of Santuario and El Golpe located in the state of Tabasco. We have a 64% shareinterest in this project. During 20212022 we had an average production of 18.517.3 thousand barrels per day of crude oil and 15.414.0 million cubic feet per day of gas. These fields are currently in the development stage following approval of the development plan by the CNHNational Hydrocarbons Commission in December of 2018.
March 2022.On March 2, 2018, we completed the first migration of an FPWC. The FPWC governing the Misión block was migrated to a shared production contract with Servicios Múltiples de Burgos, S.A. de C.V. and the CNH.National Hydrocarbons Commission. The Misión block is in the states of Nuevo León and Tamaulipas. We have a 51% interest in the contractual area and the average production under this contract in 20212022 amounted to 93.685.2 million cubic feet per day of natural gas. The FPWC governing the Misión block allows exploration and extraction activities. The CNHNational Hydrocarbons Commission approved the development plan in January 2019 and the exploration plan in April 2019. The Misión block is currently in both the exploration and extraction phases.
On March 27, 2018, we successfully participated in the first call of bidding Round 3 of the CNH,National Hydrocarbons Commission, and were awarded seven contractual areas in shallow waters, six of them as part of a consortium and one on an individual basis. Pemex Exploration and Production won four blocks in the Southeast Basins: two in consortium with Total S.A., one with Shell Oil Company and one individually, as well as three blocks corresponding to the province of Tampico-Misantla-Veracruz: two in partnership with Compañía Española de Petróleos and one in partnership with WSDM (f/k/a DEA).
We participated in another bidding round conducted by the CNH,National Hydrocarbons Commission, referred to as Round 2.4, obtaining four exploration blocks. On May 7, 2018, we signed four exploration and extraction contracts covering several deep-water blocks in the Gulf of Mexico, the rights to which were auctioned off pursuant to the bidding process:
•Block 2 with Shell Exploración y Extracción de México, S.A. de C.V., as operator. We have a 50% interest in the contractual area, which spans 2,146 square kilometers and is in the Plegado Perdido Belt.
•Block 5. We are the operator of and have a 100% interest in the contractual area, which spans 2,733 square kilometers and is in the Perdido Foldbelt.
•Block 18. We are the operator of and have a 100% interest in the contractual area, which spans 2,917 square kilometers and is in the Mexican Ridges Foldbelt region.
•Block 22 with Chevron Energía de Mexico, S. de R.L. de C.V., as operator, and Inpex E&P México, S.A. de C.V. We have a 27.5% interest in the contractual area, which spans 2,879 square kilometers and is in the Cuenca Salina region.
The CNHNational Hydrocarbons Commission approved the exploration plans for Blocks 5 and 22 in June and May 2019, respectively. Exploration plans were also approved by CNHNational Hydrocarbons Commission for Block 2 in June 2019 and Block 18 in August 2019. TheseAs of the date of this annual report, these blocks are currently in the exploration phase.
On June 27, 2018, we signed seven exploration and extraction contracts covering shallow water blocks in the Gulf of Mexico, the rights to which were auctioned off pursuant to the bidding round referred to as Round 3.1:
•Block 16 with WSDM (f/k/a DEA) as operator, and Cepsa E.P. Mexico, S. de R.L. de C.V. We have a 40% interest in the contractual area, which spans 785 square kilometers and is in the Tampico-Misantla-Veracruz area.
•Block 17 with WSDM (f/k/a DEA) as operator, and Cepsa E.P. Mexico, S. de R.L. de C.V. We have a 40% interest in the contractual area, which spans 842 square kilometers and is in the Tampico-Misantla-Veracruz area.
•Block 18 with Cepsa E.P. Mexico, S. de R.L. de C.V. We operate the block with an 80% interest in the contractual area, which spans 813 square kilometers and is in the Tampico-Misantla-Veracruz area.
•Block 29. We are the operator of and have a 100% interest in the contractual area, which spans 471 square kilometers and is in the Cuencas del Sureste area.
•Block 32 with Total E&P México, S. A. de C.V. We operate the block with a 50% interest in the contractual area, which spans 1,027 square kilometers and is in the Cuencas del Sureste area.
•Block 33 with Total E&P Mexico, S. de R.L. de C.V. as operator. We have a 50% interest in the contractual area, which spans 581 square kilometers and is in the Cuencas del Sureste area.
•Block 35 with Shell Exploración y Extracción de México, S.A. de C.V. as operator. We have a 50% interest in the contractual area, which spans 798 square kilometers and is in the Cuencas del Sureste area.
The CNHNational Hydrocarbons Commission approved the exploration plans for Block 18 in August 2019, for Blocks 16 and 17 in September 2019 and for Blocks 29, 32, 33, 35 in October 2019. TheseAs of the date of this annual report these blocks are currently in the exploration phase.
On August 3, 2018, we migrated the Integrated E&P Contract for the Ébano block to a shared production contract with DS Servicios Petroleros, S.A. de C.V. (DIAVAZ), as operator, and D&S Petroleum, S.A. de C.V. The Ébano block spans an area of 1,569.1 square kilometers and is located in the states of Veracruz, San Luis Potosí and Tamaulipas. In 2021,2022, average production under this contract was 5.5amounted to 5.9 thousand barrels per day of crude oil and 1.41.3 million cubic feet per day of gas. We and DIAVAZ contributed to a corporate guarantee delivered to the Mexican Government in accordance with our respective interests in the partnership. The corporate guarantee totaledamounted to U.S. $500 million, 55%45% of which was contributed by us and 45%55% of which was contributed by DIAVAZ.
Our shared production contract for the Ébano block allows for exploration and extraction activities. The CNHNational Hydrocarbons Commission approved the development plan in May 2019 and the exploration plan in October 2019. ThisAs of the date of this annual report, Ébano block is currently in both the exploration and extraction phases.
On September 18, 2018, we signed ainformation sharinginformation-sharing relating to the discovery of the Zama discovery,field, which spans Block 7 and a neighboring block assigned to us.
pre-unitization
agreement related to certain tracts of the Yaxché fields and the shared production contract for Block 7 with a consortium of Talos Energy, Offshore Mexico, as operator, Sierra Oil & Gas and Premier Oil. Both areas are located in the offshore regions of Mexico’s Southeast basin. Thispre-unitization
agreement was atwo-year
contract that enabled On November 21, 2018, we migrated the Integrated E&P Contract for the Miquetla block to a license contract with Operadora de Campos DWF, S.A. de C.V., as operator. The Miquetla block spans 139.7 square kilometers and is located in the states of Puebla and Veracruz. In 2021,2022, average production under this contract was 1.01.1 thousand barrels per day of crude oil and 3.94.4 million cubic feet per day of natural gas. We have a 49% interest in the contractual area and the contract has a term of 30 years. Our license contract for the Miquetla block allows for exploration and extraction activities. The CNHNational Hydrocarbons Commission approved the development and exploration plans in November 2019. ThisAs of the date of this annual report, Miquetla block is currently in both the exploration and extraction phases.
On December 9, 2019, theSENERMinistry of Energy a shared reservoir notice for the Zama field. On March 5, 2020, SENERMinistry of Energy resolved to continue with the unitization process.
Talos-led
consortium submitted to On May 21, 2020, based on the technical opinion of the CNH, the Ministry of Energy determined that Zama is a shared field. Therefore, in accordance with current legislation, in July 2020, the Ministry of Energy instructed us and the “Block 7 Consortium” (Talos Energy Offshore Mexico 7, S. de R.L. de C.V., Sierra O&G Exploración y Producción, S. de R.L. de C.V. (now a Wintershall DEA company) and Premier Oil Exploration and Production Mexico, S.A. de C.V.) to carry out the unification of the Zama field, with the aim of maximizing the exploitation of this field for the benefit of Mexico. In response, we and the Block 7 Consortium continued with our discussions in order to jointly submit a proposed unificationunitization agreement to SENER.the Ministry of Energy. In September 2020, we and the Block 7 Consortium decided to activate the expert’s procedure outlined in the preliminary unificationunitization agreement. On April 22, 2021, we and the Block 7 Consortium received the final expert report that defined the initial tract participation in the Zama reservoir. The final expert report determined that we havehold 50.43% of the Zama reservoir whereas the Block 7 Consortium haveholds the other 49.57%.
We and the Block 7 Consortium were unable to reach an agreement with respect to the unificationunitization of the Zama field, to be submitted to SENER by March 26, 2021.field. Therefore and in accordance with current legislation, SENER must determineMinistry of Energy determined the terms and conditions of the unification by the end ofunitization in March 2022.
On July 22, 2021, SENER with the technical opinionMinistry of CNH,Energy appointed PEPPemex Exploration and Production as the Operatoroperator of Zama project.Zama. On September 3, 2021, Talos submitted a Dispute Notificationdispute notification to the Mexico´s Ministry of Economy regarding the designation of Pemex Exploration and Production as the Operatoroperator of Zama. As of the date of this annual report, this dispute is still pending.
On March 23, 2022, Pemex Exploration and Production received the Unitization Resolution of Zama field issued by the Ministry of Energy. Pursuant to the resolution, Pemex Exploration and Production, as the unit operator, submitted to the National Hydrocarbons Commission the field development plan of Zama Unit on March 23, 2023. On this regard, the operating committee of Zama comprised of Pemex Exploration and Production and the Block 7 Consortium Firms held three meetings to discuss and define relevant aspects of the field development plan of the unit. In addition Pemex Exploration and Production and the Consortium undertook meetings to address technical issues related to field development, infrastructure, detailed engineering, industrial safety, among others. Thus, the plan was approved by the Mexican Government.
operating committee of the Zama Unit.In accordance with the Unitization Resolution, on May 4, 2022, PEP submitted to the CNH the Evaluation Report and the Declaration of Commercial Discovery for the Zama Field
Expediting the development of newly discovered fields
In 2021,2022, we worked to develop 2730 fields, 2124 in shallow water and 6six onshore. We had previously begunstarted to work on 2427 of these fields in 2019-2020.during 2019, 2020 and 2021. We designed a strategy for these developments, considering integrated services contract schemes and a simplified contract process.
To improve the contracting process, we established the following four strategies:
•regulatory, contractual and constructive simplification;
•establishing reference engineering;
•homologation of technical bases for design; and
•encouraging the formation of companies’ consortiums with major financial and technical capacity to develop the required infrastructure for the production and transportation of hydrocarbons, such as platforms, pipelines, process plant and equipment.
Further, we established two policies for the execution of our new developments:
•leverage already installed infrastructure and equipment to interconnect to new facilities and handle new field production; and
•adopt an early production philosophy with respect to exploration and infrastructure teams, and work to produce exploratory wells for a double purpose: obtaining cash flow as soon as possible and obtaining data from the well and reservoir.
In 2021,2022, we contracted 1engaged in seven offshore infrastructure development package,contracts, which entailed the developmentconstruction and installation of 3pipelines and platforms, and 2 pipelines. The global progress of construction of marineeight onshore infrastructure is 59% The progress of construction of land infrastructure (land platforms,contracts to build roads, well locations, install pipelines, process) has been done, under integrated services contracts, previously settled,process facilities and has progressed 17%auxiliary services.
In 2021,2022, we also had 9engaged in four drilling services contracts to continue drilling new wells and supply the drilling of wellnecessary services for wells already in new fields.production. As of December 31, 2021,2022, we had begunstarted production in 2427 of these 2730 fields. TheseIn 2022, these fields had an average production of 221.2387.9 thousand barrels per day of crude oilliquid hydrocarbon and 567.81,121.3 million cubic feet per day of natural gas in 2021.
gas.Industrial Transformation
Our industrial transformation segment is comprised of four principal activities: (i) refining, (ii) gas and aromatics (iii) ethylene and derivatives and (iv) fertilizers, since January 1, 2021.
fertilizers.Refining
Refining Processes and Capacity
Our refining production processes include the following:
•Atmospheric distillation
•Vacuum distillation
•Cracking
•Visbreaking
horizontal-tube
heater brought to a high temperature. Visbreaking reduces flasher bottom viscosity and produces some heavy gas oil.•Reforming processes
•Hydrotreatment or residual hydrocracking
off-take.
The new processes also include the saturation of aromatic compounds.•Alkylation and isomerization
straight-chain
hydrocarbon molecules intobranched-chain
products. Pentanes and hexanes, which are difficult to reform, are isomerized through the use of aluminum chloride and otherprecious-metal
catalysts. Normal butane may be isomerized to provide a portion of the isobutene feed needed for the alkylation process. The process produces a high octane, low sensitivity blending agent for gasoline.•Coking
straight-run
gasoline (coker naphtha) and variousmiddle-distillate
fractions used as catalytic feedstock, thus generating a concentrated solid material.These production processes together constitute our production capacity as set forth in the table below.
Refining Capacity by Production Process
| At December 31, | |||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||
| (in thousands of barrels per day) | |||||||||||||||||
| Production Process | |||||||||||||||||
| Atmospheric distillation | 1,640.0 | 1,640.0 | 1,640.0 | 1,640.0 | 1,640.0 | ||||||||||||
| Vacuum distillation | 772.2 | 772.2 | 772.2 | 772.2 | 772.2 | ||||||||||||
| Cracking | 422.5 | 422.5 | 422.5 | 422.5 | 422.5 | ||||||||||||
| Visbreaking | 91.0 | 91.0 | 91.0 | 91.0 | 91.0 | ||||||||||||
| Reforming | 279.3 | 279.3 | 279.3 | 279.3 | 279.3 | ||||||||||||
| Hydrotreatment | 1,230.0 | 1,230.0 | 1,230.0 | 1,230.0 | 1,230.0 | ||||||||||||
| Alkylation and isomerization | 154.3 | 154.3 | 154.3 | 154.3 | 154.3 | ||||||||||||
| Coking | 155.8 | 155.8 | 155.8 | 155.8 | 155.8 | ||||||||||||
At December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands of barrels per day) | ||||||||||||||||||||
Production Process | ||||||||||||||||||||
Atmospheric distillation | 1,640.0 | 1,640.0 | 1,640.0 | 1,640.0 | 1,627.0 | |||||||||||||||
Vacuum distillation | 772.2 | 772.2 | 772.2 | 772.2 | 772.2 | |||||||||||||||
Cracking | 422.5 | 422.5 | 422.5 | 422.5 | 422.5 | |||||||||||||||
Visbreaking | 91.0 | 91.0 | 91.0 | 91.0 | 91.0 | |||||||||||||||
Reforming | 279.3 | 279.3 | 279.3 | 279.3 | 279.3 | |||||||||||||||
Hydrotreatment | 1,230.0 | 1,230.0 | 1,230.0 | 1,230.0 | 1,230.0 | |||||||||||||||
Alkylation and isomerization | 154.3 | 154.3 | 154.3 | 154.3 | 154.3 | |||||||||||||||
Coking | 155.8 | 155.8 | 155.8 | 155.8 | 155.8 | |||||||||||||||
Source: Base de Datos Institucional (Pemex Institutional Database, or Pemex BDI)"Pemex BDI").
As of December 31, 2021,2022, we owned and operated six refineries:refineries in Mexico: Cadereyta, Madero, Minatitlán, Salamanca, Salina Cruz and Tula. As of December 31, 2022, P.M.I. Services North America, Inc. owned and operated one refinery in the United States: Deer Park. Our refineries consist of atmospheric and vacuum distillation units, where the bulk of crude oil input is processed. Secondary processing facilities include desulfurization units and facilities for catalytic cracking, reforming and hydrotreating.
Production
We produce a wide range of products derived from crude oil and natural gas, including LPG, gasoline, jet fuel, diesel, fuel oil, asphalts, lubricants and other refined products. In 2021,2022, we produced 722.4833.5 thousand barrels per day of refined products (including dry gas21.1%15.4% as compared to 596.4722.5 thousand barrels per day in 2020.2021.
by-products
of the refining process), an increase of The following table sets forth, by category, our production of petroleum products for the five years ended December 31, 2021.2022.
Refining Production
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||
| (in thousands of barrels per day) | ||||||||||||||||||||
| Refinery Crude Oil Runs | 815.8 | 711.6 | 590.6 | 592.0 | 611.9 | 14.6 | ||||||||||||||
| Refined Products | ||||||||||||||||||||
| Liquefied petroleum gas | 10.6 | 8.5 | 5.5 | 7.2 | 10.1 | 24.7 | ||||||||||||||
| Gasoline | ||||||||||||||||||||
| Pemex Magna | 9.5 | 7.3 | 5.0 | 13.9 | 8.8 | 30.1 | ||||||||||||||
| Ultra-Low Sulfur Magna | 249.6 | 216.9 | 177.2 | 187.1 | 196.4 | 15.1 | ||||||||||||||
Pemex Premium(1) | 7.7 | 5.2 | 2.7 | 1.7 | 1.9 | 48.1 | ||||||||||||||
| Base | 4.2 | 3.4 | 0.6 | 0.8 | — | 23.5 | ||||||||||||||
| Total | 271.0 | 232.8 | 185.5 | 203.5 | 207.1 | 16.4 | ||||||||||||||
| Kerosene (Jet fuel) | 33.1 | 28.4 | 17.5 | 29.0 | 34.7 | 16.5 | ||||||||||||||
| Diesel | ||||||||||||||||||||
Pemex Diesel(2) | 50.3 | 50.5 | 55.6 | 54.8 | 67.8 | (0.4) | ||||||||||||||
| Ultra-Low Sulfur Diesel | 96.1 | 67.2 | 57.2 | 74.1 | 48.9 | 43.0 | ||||||||||||||
| Others | — | — | 0.8 | 1.3 | 0.1 | — | ||||||||||||||
| Total | 146.4 | 117.7 | 113.6 | 130.2 | 116.8 | 24.4 | ||||||||||||||
Fuel oil(3) | 258.3 | 244.3 | 176.0 | 149.8 | 185.1 | 5.7 | ||||||||||||||
| Other refined products | ||||||||||||||||||||
| Asphalts | 11.4 | 10.0 | 8.9 | 10.0 | 13.8 | 14.0 | ||||||||||||||
| Lubricants | 0.2 | 0.1 | 0.2 | 0.9 | 1.9 | 100.0 | ||||||||||||||
| Paraffins | 0.1 | — | — | 0.2 | 0.5 | — | ||||||||||||||
| Still gas | 57.8 | 53.0 | 41.9 | 45.4 | 34.8 | 9.1 | ||||||||||||||
Other products(4) | 44.6 | 27.7 | 47.1 | 49.3 | 23.7 | 61.0 | ||||||||||||||
| Total | 114.1 | 90.8 | 98.1 | 105.8 | 74.7 | 25.7 | ||||||||||||||
| Total refined products | 833.5 | 722.5 | 596.2 | 625.5 | 628.5 | 15.4 | ||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in thousands of barrels per day) | ||||||||||||||||||||||||
Refinery Crude Oil Runs | 711.6 | 590.6 | 592.0 | 611.9 | 767.0 | 20.5 | ||||||||||||||||||
Refined Products | ||||||||||||||||||||||||
Liquefied petroleum gas | 8.5 | 5.5 | 7.2 | 10.1 | 15.8 | 54.5 | ||||||||||||||||||
Gasoline | ||||||||||||||||||||||||
Pemex Magna | 7.3 | 5.0 | 13.9 | 8.8 | 11.0 | 46.0 | ||||||||||||||||||
Ultra-Low Sulfur Magna | 216.9 | 177.2 | 187.1 | 196.4 | 238.7 | 22.4 | ||||||||||||||||||
Pemex Premium (1) | 5.2 | 2.7 | 1.7 | 1.9 | 5.6 | 92.6 | ||||||||||||||||||
Base | 3.4 | 0.6 | 0.8 | — | 1.8 | 466.7 | ||||||||||||||||||
Total | 232.8 | 185.5 | 203.5 | 207.1 | 257.0 | 25.5 | ||||||||||||||||||
Kerosene (Jet fuel) | 28.4 | 17.5 | 29.0 | 34.7 | 40.5 | 62.3 | ||||||||||||||||||
Diesel | ||||||||||||||||||||||||
Pemex Diesel (2) | 50.5 | 55.6 | 54.8 | 67.8 | 87.4 | (9.2 | ) | |||||||||||||||||
Ultra-Low Sulfur Diesel | 67.2 | 57.2 | 74.1 | 48.9 | 63.8 | 17.5 | ||||||||||||||||||
Others | — | 0.8 | 1.3 | 0.1 | 2.4 | (100.0 | ) | |||||||||||||||||
Total | 117.7 | 113.6 | 130.3 | 116.8 | 153.6 | 3.6 | ||||||||||||||||||
Fuel oil (3) | 244.3 | 176.0 | 149.8 | 185.1 | 217.3 | 38.8 | ||||||||||||||||||
Other refined products | ||||||||||||||||||||||||
Asphalts | 10.0 | 8.9 | 10.0 | 13.8 | 16.5 | 12.4 | ||||||||||||||||||
Lubricants | 0.1 | 0.2 | 0.9 | 1.9 | 1.9 | (50.0 | ) | |||||||||||||||||
Paraffins | — | — | 0.2 | 0.5 | 0.4 | — | ||||||||||||||||||
Still gas | 53.0 | 41.9 | 45.4 | 34.8 | 47.9 | 26.5 | ||||||||||||||||||
Other refined products (4) | 27.7 | 47.1 | 49.3 | 23.7 | 35.5 | (41.2 | ) | |||||||||||||||||
Total | 90.8 | 98.2 | 105.8 | 74.7 | 102.1 | (7.5 | ) | |||||||||||||||||
Total refined products | 722.4 | 596.4 | 625.6 | 628.5 | 786.2 | 21.1 | ||||||||||||||||||
Note: Numbers may not total due to rounding.
(1)Pemex Premium is an ultra-low sulfur gasoline with 0.003% sulfur content.
(2)Pemex Diesel is sold in the northern border market with 0.003% sulfur content.
(3)Includes heavy fuel oil and intermediate 15.
(4)Includes coke, light cyclic oil and aeroflex.
Source: Pemex BDI.
Our refining production mostly consists of gasoline, diesel and fuel oil. In 2021,2022, gasoline represented 32.2%32.5%, diesel fuel represented 16.3%17.6%, jet fuel represented 3.9%4.0%, LPG represented 1.2%1.3% and fuel oil represented 33.8%31.0% of total petroleum products production. The remainder, 12.6%13.7% of our production consisted of a variety of other refined products.
Variable Refining Margin
During 2021,2022, the National Refining System recorded a variable refining margin of U.S. $2.92$7.34 per barrel, an increase of U.S. $2.16$4.42 per barrel as compared to U.S. $0.76$2.92 in 20202021, mainly due to higher prices of refined products in the Northern Gulf Coast of Mexico.Mexico and improved operating performance at the National Refining System due to higher distillate yields.
The following table sets forth the variable refining margin for the five years ended December 31, 2021.2022.
Variable Refining Margin
| Year ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 (%) | |||||||||||||||
| (U.S. dollars per barrel) | ||||||||||||||||||||
| Variable margin | 7.34 | 2.92 | 0.76 | 0.80 | 0.96 | 151.4 | ||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 (%) | |||||||||||||||||||
(U.S. dollars per barrel) | ||||||||||||||||||||||||
Variable margin | 2.92 | 0.76 | 0.80 | 0.96 | 5.43 | 284.2 | ||||||||||||||||||
Domestic Sales
We market a full range of refined products, including gasoline, jet fuel, diesel, fuel oil and petrochemicals. We are one of a few major producers of crude oil worldwide that experiences significant domestic demand for our refined products.
For the five years ended December 31, 2021,2022, the value of our domestic sales of refined products and petrochemicals was as follows.
Value of Refining’s Domestic Sales
(1)
Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of pesos) (2) | (%) | (in millions of pesos)(2) | (%) | ||||||||||||||||||||||||||||||||||||||||||||
Refined Products | Refined Products | ||||||||||||||||||||||||||||||||||||||||||||||
Gasoline | Gasoline | ||||||||||||||||||||||||||||||||||||||||||||||
Pemex Magna | Ps. 319,238.9 | Ps. 212,256.8 | Ps. 374,020.2 | Ps. 428,838.0 | Ps. 361,021.7 | 50.4 | Pemex Magna | Ps. | 488,685.1 | Ps. | 319,238.9 | Ps. | 212,256.8 | Ps. | 374,020.2 | Ps. | 428,838.0 | 53.1 | |||||||||||||||||||||||||||||
Pemex Premium | 91,758.1 | 72,658.1 | 75,538.0 | 83,837.1 | 82,028.7 | 26.3 | Pemex Premium | 116,923.0 | 91,758.1 | 72,658.1 | 75,538.0 | 83,837.1 | 27.4 | ||||||||||||||||||||||||||||||||||
Aviation fuels (Others) | 453.8 | 312.9 | 404.7 | 433.1 | 371.1 | 45.0 | Aviation fuels (Others) | 577.1 | 453.8 | 312.9 | 404.7 | 433.1 | 27.2 | ||||||||||||||||||||||||||||||||||
Total | Ps. 411,450.9 | Ps. 285,227.7 | Ps. 449,962.8 | Ps. 513,108.2 | Ps. 443,421.5 | 44.3 | Total | 606,185.2 | 411,450.8 | 285,227.8 | 449,962.9 | 513,108.2 | 47.3 | ||||||||||||||||||||||||||||||||||
Kerosene (Jet fuel) | 41,478.4 | 20,156.5 | 55,716.4 | 56,793.9 | 39,024.5 | 105.8 | Kerosene (Jet fuel) | 96,985.2 | 41,478.4 | 20,156.5 | 55,716.4 | 56,793.9 | 133.8 | ||||||||||||||||||||||||||||||||||
Diesel | Diesel | ||||||||||||||||||||||||||||||||||||||||||||||
Pemex Diesel | 121,604.6 | 98,160.8 | 171,405.9 | 207,499.4 | 181,854.4 | 23.9 | Pemex Diesel | 263,616.5 | 121,604.6 | 98,160.8 | 171,405.9 | 207,499.4 | 116.8 | ||||||||||||||||||||||||||||||||||
Others | 18,797.9 | 12,455.1 | 23,659.7 | 26,669.3 | 28,195.1 | 50.9 | Others | 37,655.8 | 18,797.9 | 12,455.1 | 23,659.7 | 26,669.3 | 100.3 | ||||||||||||||||||||||||||||||||||
Total | Ps. 140,402.5 | Ps. 110,615.9 | Ps. 195,065.6 | Ps. 234,168.6 | Ps. 210,049.5 | 26.9 | Total | 301,272.3 | 140,402.5 | 110,615.9 | 195,065.6 | 234,168.7 | 114.6 | ||||||||||||||||||||||||||||||||||
Fuel oil | 19,348.2 | 9,139.5 | 28,789.8 | 43,779.1 | 35,622.9 | 111.7 | Fuel oil | 21,207.7 | 19,348.2 | 9,139.5 | 28,789.8 | 43,779.1 | 9.6 | ||||||||||||||||||||||||||||||||||
Other refined products | Other refined products | ||||||||||||||||||||||||||||||||||||||||||||||
Asphalts | 5,447.6 | 4,569.9 | 6,058.3 | 7,062.0 | 5,895.8 | 19.2 | Asphalts | 7,949.6 | 5,447.6 | 4,569.9 | 6,058.3 | 7,062.0 | 45.9 | ||||||||||||||||||||||||||||||||||
Lubricants | 120.0 | 186.8 | 673.3 | 1,277.4 | 1,061.4 | (35.8 | ) | Lubricants | 124.1 | 120.0 | 186.8 | 673.3 | 1,277.4 | 3.4 | |||||||||||||||||||||||||||||||||
Paraffins | — | — | 135.8 | 291.4 | 230.9 | — | Paraffins | 36.3 | 15.0 | (4) | — | 135.8 | 291.4 | 142.0 | |||||||||||||||||||||||||||||||||
Coke | 813.7 | 440.4 | 666.0 | 200.5 | 421.1 | 84.8 | Coke | 1,390.2 | 813.7 | 440.4 | 666.0 | 200.5 | 70.8 | ||||||||||||||||||||||||||||||||||
Citroline | — | — | — | — | 3.6 | — | |||||||||||||||||||||||||||||||||||||||||
Total | Ps. 6,381.2 | Ps. 5,197.2 | Ps. 7,533.5 | Ps. 8,831.2 | Ps. 7,612.8 | 22.8 | Total | 9,500.2 | 6,396.3 | (4) | 5,197.1 | 7,533.4 | 8,831.3 | 48.5 | |||||||||||||||||||||||||||||||||
Total Refined Products | Ps. 619,061.2 | Ps. 430,336.8 | Ps. 737,068.1 | Ps. 856,681.0 | Ps. 735,731.2 | 43.9 | Total Refined Products | Ps. | 1,035,150.6 | Ps. | 619,076.2 | (4) | Ps. | 430,336.8 | Ps. | 737,068.1 | Ps. | 856,681.2 | 67.2 | ||||||||||||||||||||||||||||
Petrochemicals (3) | Ps. 3,692.6 | Ps. 1,432.2 | Ps. 2,422.4 | Ps. 3,795.9 | Ps. 3,905.6 | 157.8 | Petrochemicals(3) | Ps. | 3,739.3 | Ps. | 3,692.6 | Ps. | 1,432.2 | Ps. | 2,422.4 | Ps. | 3,795.9 | 1.3 | |||||||||||||||||||||||||||||
Note: Numbers may not total due to rounding.
(1)Excludes Impuesto Especial sobre Producción y Servicios, (Special Taxes over Production and Services "IEPS tax") and value added tax. See “—Taxes, Duties and Other Payments to the Mexican Government” in this Item 4. (2)Figures are stated in nominal pesos. (3)Petrochemical products produced at refineries (carbon black feedstocks and propylene). (4)Reflects adjustments made to |
Pemex BDI.
Source: Pemex BDI.
In 2021,2022, our domestic sales of refined products increased by Ps. 188,724.4416,074.4 million, or 43.9%67.2% in value as compared to 20202021 levels (excluding IEPS tax and value added tax). This was primarily due to a 44.3%47.3% or Ps. 126,233.2194,734.4 million increase in the value of our gasolines sales, an increase of 26.9%114.6% or Ps. 29,786.6160,869.8 million in the value of our diesel sales and an increase of 105.8%133.8% or Ps. 21,321.955,506.8 million in the value of our jet fuel oil sales, due to the price effect of these fuels.
The volume of our domestic sales of refined products for the20212022 was distributed as follows.
five-year
period ended December 31, Volume of Refining’s Domestic Sales
| Year ended December 31, | ||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | |||||||||||||||||||||||||||
| (in thousands of barrels per day, except where otherwise indicated) | (%) | |||||||||||||||||||||||||||||||
| Refined Products | ||||||||||||||||||||||||||||||||
| Gasoline | ||||||||||||||||||||||||||||||||
| Pemex Magna | 549.5 | 451.6 | 435.0 | 607.5 | 646.2 | 21.7 | ||||||||||||||||||||||||||
| Pemex Premium | 121.0 | 123.3 | 136.2 | 112.7 | 117.5 | (1.9) | ||||||||||||||||||||||||||
| Aviation fuels (Others) | 0.4 | 0.5 | 0.4 | 0.5 | 0.5 | (20.0) | ||||||||||||||||||||||||||
| Total | 670.9 | 575.4 | 571.6 | 720.7 | (2) | 764.2 | 16.6 | |||||||||||||||||||||||||
| Kerosenes (jet fuel) | 87.6 | 62.0 | 39.4 | 83.3 | 85.6 | 41.3 | ||||||||||||||||||||||||||
| Diesel | ||||||||||||||||||||||||||||||||
| Pemex Diesel | 266.2 | 178.3 | 192.7 | 256.9 | 292.8 | 49.3 | ||||||||||||||||||||||||||
| Others | 38.0 | 27.8 | 24.8 | 36.3 | 38.5 | 36.7 | ||||||||||||||||||||||||||
| Total | 304.2 | 206.1 | 217.5 | 293.2 | 331.3 | 47.6 | ||||||||||||||||||||||||||
| Fuel oil | 68.3 | 78.1 | 55.2 | 76.5 | 105.1 | (12.5) | ||||||||||||||||||||||||||
| Other refined products | ||||||||||||||||||||||||||||||||
| Asphalts | 10.7 | 9.6 | 8.5 | 9.5 | 12.9 | 11.5 | ||||||||||||||||||||||||||
| Lubricants | 0.2 | 0.2 | 0.3 | 1.0 | 2.0 | — | ||||||||||||||||||||||||||
| Paraffins | 0.1 | — | — | 0.2 | 0.5 | — | ||||||||||||||||||||||||||
| Coke | 21.3 | 21.3 | 26.2 | 27.4 | 13.2 | — | ||||||||||||||||||||||||||
| Total | 32.3 | 31.1 | 35.0 | 38.1 | 28.6 | (2) | 3.9 | |||||||||||||||||||||||||
| Total refined products | 1,163.3 | 952.7 | 918.7 | (2) | 1,211.8 | (2) | 1,314.8 | 22.1 | ||||||||||||||||||||||||
Petrochemicals(1) | 283.4 | 289.4 | 302.4 | 363.2 | 411.1 | (2.1) | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | |||||||||||||||||||
(in thousands of barrels per day, except where otherwise indicated) | (%) | |||||||||||||||||||||||
Refined Products | ||||||||||||||||||||||||
Gasoline | ||||||||||||||||||||||||
Pemex Magna | 451.6 | 435.0 | 607.5 | 646.2 | 660.5 | 3.8 | ||||||||||||||||||
Pemex Premium | 123.3 | 136.2 | 112.7 | 117.5 | 136.6 | (9.5 | ) | |||||||||||||||||
Aviation fuels (Others) | 0.5 | 0.4 | 0.5 | 0.5 | 0.5 | 25.0 | ||||||||||||||||||
Total | 575.4 | 571.6 | 720.6 | 764.2 | 797.5 | 0.6 | ||||||||||||||||||
Kerosenes (jet fuel) | 62.0 | 39.4 | 83.3 | 85.6 | 81.7 | 57.4 | ||||||||||||||||||
Diesel | ||||||||||||||||||||||||
Pemex Diesel | 178.3 | 192.7 | 256.9 | 292.8 | 317.6 | (7.5 | ) | |||||||||||||||||
Others | 27.8 | 24.8 | 36.3 | 38.5 | 47.9 | 12.1 | ||||||||||||||||||
Total | 206.1 | 217.5 | 293.2 | 331.3 | 365.5 | (5.3 | ) | |||||||||||||||||
Fuel oil | 78.1 | 55.2 | 76.5 | 105.1 | 124.7 | 41.5 | ||||||||||||||||||
Other refined products | ||||||||||||||||||||||||
Asphalts | 9.6 | 8.5 | 9.5 | 12.9 | 15.4 | 12.9 | ||||||||||||||||||
Lubricants | 0.2 | 0.3 | 1.0 | 2.0 | 2.0 | (33.3 | ) | |||||||||||||||||
Paraffins | — | — | 0.2 | 0.5 | 0.4 | — | ||||||||||||||||||
Coke | 21.3 | 26.2 | 27.4 | 13.2 | 21.3 | (18.7 | ) | |||||||||||||||||
Citroline | — | — | — | — | — | — | ||||||||||||||||||
Total | 31.1 | 35.0 | 38.1 | 28.5 | 39.1 | (11.1 | ) | |||||||||||||||||
Total refined products | 952.7 | 918.6 | 1,211.7 | 1,314.8 | 1,408.4 | 3.7 | ||||||||||||||||||
Petrochemicals (1) | 289.4 | 302.4 | 363.2 | 411.1 | 464.5 | (4.3 | ) | |||||||||||||||||
Note: Numbers may not total due to rounding.
(1)In thousands of metric tons. These are petrochemical products produced in our refineries (raw material for black carbon and propylene).
(2)Reflects adjustments made to Pemex BDI.
Source: Pemex BDI.
The volume of our domestic gasoline sales increased by 0.6%16.6% in 2021,2022, from 571.6 thousand barrels per day in 2020 to 575.3575.4 thousand barrels per day in 2021 due to greater mobility in the country, which generated higher demand for fuels, mainly in the fourth quarter of 2021. The volume of our diesel sales decreased by 5.3%, from 217.5670.9 thousand barrels per day in 2020 to 206.02022. The volume of domestic diesel sales increased by 47.6%, from 206.1 thousand barrels per day in 2021 to 304.2 thousand barrels per day in 2022. These increases resulted primarily from an increase in industrial and commercial activities and population mobility in Mexico as a result of a reduction in demand at a national level during the third quarter of 2021, duecompared to the gradual economic reopening for the services sector and a slowdown in the tourism sector.
2021.The volume of our domestic sales of fuel oil increaseddecreased by 41.5%12.5%, from 55.2 thousand barrels per day in 2020 to 78.1 thousand barrels per day in 2021 to 68.3 thousand barrels per day in 2022, primarily due to an increasea decrease in CFE’s demandthe Comisión Federal de Electricidad's (Federal Electricity Commission, or "CFE") sales for fuel oil.
In the case of gasoline, sales of Pemex Premium sales were 121.0 thousand barrels per day in 2022, a reduction of 1.9% compared to 123.3 thousand barrels per day in 2021, a reductionwhile sales of 9.5%Pemex Magna were 549.5 thousand barrels per day, an increase of 21.7% compared to 136.2451.6 thousand barrels per day in 2020, while Pemex Magna sales were 451.6 thousand barrels per day which means an increase2021. This is the result of 3.8% compared to 2020 which was 435.0 thousand barrels per day. This behavior is explained by the consumption preferences of Pemex customers who preferred to purchase Pemex Magna.
Pemex's customers.These efforts, coupled with increased mobility as pandemic restrictions loosened during the last quarter of 2021,2022, resulted in a recovery of sales due to greater demand for fuels.
During the last quarter of 2019, we began the development of the eighth generation of the performance additive for Pemex gasolines in conjunction with the(Mexican (Mexican Petroleum Institute or IMP)"IMP"). The development of this additive includes innovations such as a molecular tracer, new high-spectrum detergent molecules and corrosion and oxidation inhibition. We expect to launch the 7S generation of the performance additive, which will include the molecular tracer, by the end of 2023. We expect to launch the eighth generation of our additive inby the last quarterend of 2022.2024.
Instituto Mexicano del Petróleo
To reinforce the value of the Pemex brand and the Pemex Franchise, during the second half of 2020, we launched two new formats of service stations: nano stations and low consumption stations. Nano stations have innovative and differentiated designs, capable of adapting to reduced land surfaces in urban areas with high traffic concentration. Low consumption stations leverage
low-cost
technologies and quick installation to meet the demands of rural populations.As part of our commercial strategy, we operate wholesale and retail service stations, some of which are PEMEX-brandedPemex-branded and others of whichthat are unbranded. The unbranded stations buy products through marketing contracts and, when appropriate, have access to discounts and credit. In the case of our PEMEX-brandedPemex-branded stations, both Pemex marketers and associate distributors can sell products with the Pemex brand. Retailers to the public may only buy products through marketing contracts, just as they may only sell Pemex brand products through a franchise agreement or a Pemex brand sublicensing agreement. As of December 31, 2021, 1,1492022, 2,903 redesigned service stations were operating and 445847 additional services stations have requested redesigns.
As of December 31, 2021,2022, there were 6,9996,987 Pemex retail service stations associated with Pemex in Mexico, of which 6,9546,942 were privately owned and operated as franchises, while the remaining 45 were owned by Pemex Industrial Transformation. This total number of retail service stations represents a decrease of 6.3%0.2% from the 7,4686,999 service stations as of December 31, 2020.2021. This decrease was mainly due to increased competition in the open market. As of December 31, 2021,2022, we had 1,474825 marketing contracts, a decrease of 859649 marketing contracts, or 44%, as compared to 2,3331,474 marketing contracts as of December 31, 2020.2021. The decrease in the number of marketing contracts was mainly due to the higher concentration of customer volume in each contract as a result of new commercial contract models. From the 1,474825 contracts signed at the end of 2021,2022, we have 348410 contracts signed under the new contract model, which include 80%90% of the most important marketing customers and distributors in terms of volume at the national level. In addition, Pemex Industrial Transformation supplies oil products to 4,4604,758 service stations outside the Pemex Franchise. Of these service stations, 9941,084 operate under a sublicense of PEMEXPemex brands and 1,7783,674 use
third-party
brands.In order to gain market presence, competitors often transfer well-established Pemex gas stations to third-party brands. As a result, we are working to counteract this by opening new gas stations under our franchise model and strengthening the Pemex brand among our existing gas stations.
Despite the aggressive competitive environment and our relatively limited marketing investment, we maintained approximately 60.4%59.1% of market share with our franchised and2021.2022.
sub-licensed
Pemex gas stations by the end of December Pricing Regulations
On December 31, 2017, fuel prices in Mexico were liberalized. However, the CRE has the authority to intervene within the regulated markets. Therefore, our retail sales prices (final consumer’sconsumer prices) can be subject to potential future regulations by the CRE, such as the case of the retail sales prices (final user’s price) of LPG, whose maximum prices are regulated, pursuant to theó(Emergency (Emergency directive for the welfare of the liquified petroleum gas consumer), issued by the Ministry of Energy, with the purpose of protecting the end users until theComisióó(Federal (Federal Economic Competition Commission) determines that there is effective competition in that activity.
Directriz de emergencia para el bienestar del consumidor de gas
licuado de petr
petróleo
Comisión Federal de Competencia Econ
Económica
Through agreements A/030/2018 and A/022/2019, the CRE abrogated the asymmetric regulation of Pemex Industrial Transformation with respect to the commercialization of natural gas.
Both the first-hand sale and the full market price are determined by the full marketing price.
Gasoline and Diesel
On November 30, 2017, sale prices of gasoline and diesel were liberalized and are determined by the free market. For more information, see “Item“Item 5—Operating and Financial Review and Prospects—IEPS Tax, Hydrocarbon Duties and Other Taxes.Taxes.”
On January 1, 2021,2022, in accordance with reports issued by the CRE, average national regular retail gasoline prices increased by Ps. 1.010.37 per liter, as compared to December 31, 2020.2021. Similarly, average national retail diesel prices increased by Ps. 0.720.34 per liter on January 1, 2021,2022, as compared to December 31, 2020.2021.
Fuel Oil
On November 3, 2017, the CRE authorized new formulas to determine the price of fuel oil. Currently, there are
first-hand
sale prices for sales at refineries and market prices for sales at storage terminals. These prices are calculated weekly and apply to all customers, including the CFE.We withhold IEPS tax. While it is included in the price to our customers, we pay this tax to the authorities upon collection of the sale of our products and it is not included in our revenues. For more information, see “Item 4—“—Taxes, Duties and Other Payments to the Mexican Government—Fiscal Regime for PEMEX.PEMEX.”
As of January 1, 2020,2022, the(IEPS (IEPS Tax on Fossil Fuels) was 16.99 Mexican cents per liter, as of January 1, 2021, the IEPS Tax on Fossil Fuels was 17.5618.85 Mexican cents per liter and as of January 1, 2022,2023, the IEPS Tax on Fossil Fuels was 18.8520.32 Mexican cents per liter.
IEPS
a los Combustibles Fósiles
Natural Gas
third-party
participants to enter the gasoline and diesel market and has authorized the permanent regime offirst-hand
sales of natural gas. This permanent regime allows us to sell natural gas under two separate pricing mechanism and all end user prices are freely determined by the market:(1) the first-hand sale price, whereby we sell natural gas directly to customers at the injection points, without the use of transportation or additional services; and
(2) the full marketing price, whereby we sell natural gas at cusotomercustomer plants. Under this scheme, the price of the molecule includes transportation and services costs associated with the commercialization of natural gas.
Liquefied Petroleum Gas (LPG)
Since December 16, 2019, we have determined market list prices according to the pricing mechanisms approved by the(Committee on Prices and Economic Aspects of the Commercial Policy of Petróleos Mexicanos and its Productive Subsidiary Entities). This change is in compliance with Resolution RES/1008/2019 of the CRE, which considers our participation in first-hand sales and the marketing of LPG within a free market. Additionally, on December 16, 2019, the CRE issued Resolution RES/1755/2019, in which it approved the commercialization contract agreement model.
Comité de Precios y Aspectos Económicos de la Política Comercial de Petróleos Mexicanos y Empresas Productivas
Subsidiarias
As of January 1, 20202022 the IEPS Tax on Fossil Fuels was 1517.00 Mexican cents per kilogram. As of January 1, 2021, this tax2023, the IEPS Tax on Fossil Fuels was 1618.34 Mexican cents per kilogram, and, as of January 1, 2022, this tax is 17 Mexican cents per kilogram.
We withhold IEPS tax. For more information, see “Item 4—“—Taxes, Duties and Other Payments to the Mexican Government—Fiscal Regime for PEMEX.PEMEX.”
The Mexican Government could modify these price controls or impose additional price controls in the future. See “Item“Item 3—Key Information—Risk Factors—Risk Factors Related to our Relationship with the Mexican Government—The Mexican Government has historically imposed price controls in the domestic market on our products.products.”
Directriz de emergencia para el bienestar del consumidor de gas licuado de petróleo
Refining’s Capital Expenditures and Budget
Investments
Over the past several years, we have focused our investment program on enhancing the quality of the gasoline and diesel we produce to meet Mexico’s environmental standards. Also, we shifted our focus to the maintenance of our existing refineries and the expansion of the National Refining System to increase our hydrocarbon production. We continue to aim to stabilize and improve our ability to process heavy crude oil in order to optimize our refinery production and increase our production of other hydrocarbons in order to supply the growing national demand.
Our refining business invested Ps. 20,59435,672 million in capital expenditures in 20212022 and has budgeted Ps. 4,37921,438 million in capital expenditures for 2022.
2023.A focus of our refining capital expenditures program is the rehabilitation of the National Refining System. Pursuant to the rehabilitation program, we have evaluated each of our six existing Mexican refineries and have identified specific maintenance requirements for each unit. Our rehabilitation program focuses on addressing critical risks to the facilities such as mechanical integrity and safety and improving the efficiency and the stabilization of our crude oil processing.
The following table sets forth the capital expenditures of our refining business’ capital expenditures,business, excluding2021,2022, and the budget for 2022.2023. Capital expenditure amounts are derived from our budgetary records, which are prepared on a cash basis. Accordingly, these capital expenditure amounts do not correspond to the capital expenditure amounts in our consolidated financial statements prepared in accordance with IFRS.
non-capitalizable
maintenance, for each of the three years ended December 31, Refining’s Capital Expenditures
Year ended December 31,(1) | Budget 2023(2) | |||||||||||||
| Refining | 2022 | 2021 | 2020 | |||||||||||
(in millions of pesos)(3) | ||||||||||||||
| National Refining System Rehabilitation Program | Ps. | 12,232 | Ps. | 15,591 | Ps. | 10,638 | Ps. | 15,949 | ||||||
| Minatitlán | 3,069 | 2,525 | 1,300 | 2,496 | ||||||||||
| Cadereyta | 2,562 | 2,723 | 1,897 | 2,793 | ||||||||||
| Madero | 1,831 | 2,278 | 1,770 | 2,660 | ||||||||||
| Tula | 1,776 | 3,282 | 2,144 | 2,670 | ||||||||||
| Salina Cruz | 1,685 | 2,232 | 2,192 | 2,670 | ||||||||||
| Salamanca | 1,307 | 2,552 | 1,336 | 2,660 | ||||||||||
| Residual Use at the Miguel Hidalgo Refinery in Tula (Formerly Reconfiguration of Miguel Hidalgo Refinery in Tula) | 21,539 | 4,400 | 48 | 4,753 | ||||||||||
| Purchase of the U-801 Hydrogen Generating Plant in Madero Refinery | 770 | — | — | — | ||||||||||
| Fuel Quality Investments (4) | 390 | 5 | 66 | — | ||||||||||
| Maintenance of the Minatitlán Refinery 2019-2023 | 253 | 497 | — | — | ||||||||||
| Maintenance of the Production Capacity of the Miguel Hidalgo Refinery 2013-2017 (5) | 245 | — | 1 | — | ||||||||||
| Maintenance of the Production Capacity of the Minatitlán Refinery 2013-2017 | 155 | — | 42 | 607 | ||||||||||
| Maintenance of the Production Capacity of the Salamanca Refinery 2014-2018 | 17 | 38 | — | — | ||||||||||
| Cadereyta Refinery Energy Train | — | 52 | 14 | — | ||||||||||
| Maintenance of the Production Capacity of the Salina Cruz Refinery 2013-2017 | — | 3 | 25 | — | ||||||||||
| Installation of a 250 T/hr. Steam Boiler in the Minatitlan Refinery | — | 2 | 34 | — | ||||||||||
| Residual Conversion of the Salamanca Refinery | — | — | 7 | — | ||||||||||
| Supervision and Administration Work for the use of Waste in the Salina Cruz Refinery | — | — | 3 | — | ||||||||||
| Others | 71 | 6 | — | 129 | ||||||||||
| Total | Ps. | 35,672 | Ps. | 20,594 | Ps. | 10,878 | Ps. | 21,438 | ||||||
Year ended December 31, (1) | Budget 2022 (2) | |||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
(in millions of pesos) (3) | ||||||||||||||||
Refining | ||||||||||||||||
National Refining System Rehabilitation Program | Ps. 15,591 | Ps. 10,638 | Ps. 1,196 | Ps. 4,368 | ||||||||||||
Tula | 3,282 | 2,144 | 217 | 728 | ||||||||||||
Cadereyta | 2,723 | 1,897 | 208 | 728 | ||||||||||||
Salamanca | 2,552 | 1,336 | 174 | 728 | ||||||||||||
Minatitlán | 2,525 | 1,300 | 140 | 728 | ||||||||||||
Madero | 2,278 | 1,770 | 59 | 728 | ||||||||||||
Salina Cruz | 2,232 | 2,192 | 398 | 728 | ||||||||||||
| Residual Use at the Miguel Hidalgo Refinery in Tula (Formerly Reconfiguration of Miguel Hidalgo Refinery in Tula) | 4,400 | 48 | 948 | — | ||||||||||||
Cadereyta Refinery Energy Train | 52 | 14 | 15 | — | ||||||||||||
| Maintenance of the Production Capacity of the Salamanca Refinery 2014-2018 | 38 | — | 33 | — | ||||||||||||
Fuel Quality Investments (4) | 5 | 66 | 1,374 | 11 | ||||||||||||
| Maintenance of the Production Capacity of the Salina Cruz Refinery 2013-2017 | 3 | 25 | 296 | — | ||||||||||||
Installation of a 250 T/hr. Steam Boiler in the Minatitlan Refinery | 2 | 34 | 115 | — | ||||||||||||
| Maintenance of the Production Capacity of the Minatitlán Refinery 2013-2017 | — | 42 | 519 | — | ||||||||||||
Residual Conversion of the Salamanca Refinery | — | 7 | 17 | — | ||||||||||||
| Supervision and Administration Work for the use of Waste in the Salina Cruz Refinery | — | 3 | 8 | — | ||||||||||||
Rehabilitation of Electrical Substations Miguel Hidalgo Refinery | — | 1 | 843 | — | ||||||||||||
| Maintenance of the Production Capacity of the Madero Refinery 2014-2017 | — | — | 1,717 | — | ||||||||||||
| Maintaining the Production Capacity of the Cadereyta Refinery 2013-2015 | — | — | 1,140 | — | ||||||||||||
| Adequacy of the Burner System and Installation of an Elevated Burner at the Francisco I. Madero Refinery | — | — | 62 | — | ||||||||||||
Year ended December 31, (1) | Budget 2022 (2) | |||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
(in millions of pesos) (3) | ||||||||||||||||
| Integral Maintenance Program and Process Compressor Technology Update at the Miguel Hidalgo Refinery | — | — | 25 | — | ||||||||||||
| Acquisition of Capitalizable Catalysts for the Hydrotreatment Process in the Tula Refinery | — | — | 12 | — | ||||||||||||
Tuxpan Pipeline and Storage and Distribution Terminals | — | — | 3 | — | ||||||||||||
Others | 503 | — | 87 | — | ||||||||||||
Total | Ps. 20,594 | Ps. 10,878 | Ps. 8,409 | Ps. 4,379 | ||||||||||||
Notes: Numbers may not total due to rounding.
(1)Amounts based on cash basis method of accounting.
(2)Amended budget was authorized on January 31, 2023. The original budget was published in the Official Gazette of the Federation on November 28, 2022.
(3)Figures are stated in nominal pesos.
(4)Includes clean fuels investments for gasoline and diesel in our six refineries.
(5)Includes the project for the Rehabilitation of Electrical Substations Miguel Hidalgo Refinery reported in previous years.
Source: Petróleos Mexicanos.
In 2021,2022, we imported 340.3419.0 thousand barrels per day of gasoline, which represented 59.0%52.3% of total domestic demand for gasoline for the year. In 2022,2023, our priority is to continue strengthening the operating performance of the National Refining System rehabilitation program to increase the levels of processing and production of our oilhigh-value products by focusing on(gasoline, diesel and jet fuel), stabilize the maintenanceOlmeca refinery in Dos Bocas, Tabasco, and in the second half of our existing refineries and2023, as the developmentdifferent processing units of the new Dos Bocas refinery.refinery come into operation, increase crude oil processing, as well as advance our Residuals Utilization projects.
In addition, we are exploring alternative funding sources for capital investment projects, such as the reconfigurationsreconfiguration of the Miguel Hidalgo refinery in Tula, including residual conversion, and theIng. Antonio Dovalí Jaime refinery in Salina Cruz.Cruz, including residuals conversion. This project is expected to process 75 thousand barrels per day of catalytic and vacuum residuals to produce light and heavy naphta, ultra-low sulphur diesel, and hydrotreated heavy diesel oil.
Fuel Quality Project, Gasolines Phase (ULSG)
This project comprises the six refineries of the National Refining SystemNRS and includes the installation of ULSG2021,2022, all gasoline produced in Mexico meets international environmental standards.standards of American Society for Testing and Materials (ASTM) of 15ppm (parts per million) of sulphur content. Units are operating, but still pending completion of complementary works, which are currently suspended due to budgetary restrictions. The complementary works include, the construction of steam condensing unit in
ultra-low-sulfur gasoline ("ULSG") post-treatment
units. As of December 31, Salamanca refinery, laboratory for chemistry analysis in Madero refinery, infrastructure for management of residual
gasolines in Tula refinery, integrated optimized gasoline mixing system in Tula refinery, integrated optimized gasoline
mixing system in Cadereyta refinery, and two turbogenerators, one in Cadereyta refinery and the other in Madero refinery.
Fuel Quality Project, Diesel Phase (ULSD)
This project consists of the construction of five ULSDultra-low-sulfur diesel ("ULSD") units with services facilities, including: five hydrogen units, four sulfur recovery units, five sour water treatment units and the reconfiguration of 17 existing units to produce ULSD. As of December 31, 2021,2022, the project remained suspended and capital expenditures are focused on other priorities. For
With regards to our ULSD units at Tula and Salina Cruz, their infrastructure will be constructed under the scope of the "Residuals utilization" projects. Financing of the "Residuals utilization" projects will be provided by the Mexican Government as provided in particular, the Board of Directors of Petróleos Mexicanos ordered its termination and transfer of assets to the Residual Use project in Tula.Federal Expenditure Budget. As to the other refineries, funding alternatives are under evaluation, to complete the project which would aidin order to facilitate compliance with environmental regulations. The CRE approved extending the deadline to December 2024 to comply with Mexican Official Standardwhich governs sulfur content in commercial diesel.
NOM-016-2016,
Residual Use at the Miguel Hidalgo Refinery in Tula (Formerly Reconfiguration of the Miguel Hidalgo Refinery in Tula)
This project is expected to increase production of refined oil products from 315 thousand barrels per day to 340 thousand barrels per day and improve performance of gasoline and distillates production.
On April 20, 2021, with resolution CA-046/2021, the Board of Directors of Petróleos Mexicanos approved a modification of this project’s execution strategy, business objectives, scope and execution timeline. PTI Infraestructura de Desarrollo, S.A. de C.V. (PTI-ID) was appointed to develop the project. The financing strategy was approved by the Board of Directors of Petróleos Mexicanos on August 19, 2021.
The project comprises a processing scheme of delayed coking, which maximizes raw material usage, producing gasoline and diesel without asphalt or fuel oil. The scope includes the construction of 3three process units and 4four new service units, upgrade and repairrenovation of 7seven existing units, auxiliary services, storage infrastructure and integration.
The project is currently in progress and 47.7% has been completed.Residual Conversion of the Salamanca Refinery
processing capacity oflow-valueresiduals intohigh-valuedistillates. Likewise, it includes the modernization 240 thousand barrels per day of the lubricants train to produce lubricants of greater value and quality. As of December 31, 2021, the project was 13% complete. The projectcrude oil is currently suspended due to budgetary constraints. We are considering funding alternatives in order to resumecontemplated, which would include approximately 40 thousand barrels per day of residuals from the reconfiguration.Salamanca refinery.
Tuxpan Maritime Terminal
This project is intended to help meet the increase in demand for refined products in the metropolitan area of the Mexico Valley. TheValley of Mexico. Currently, the total cost of the project is Ps. 5,839.16,264 million, approximately, which includes the construction of a pipeline
18-inches
in diameter and 109 kilometers long, from Cima de Togo to Venta de Carpio. It also includes five storage tanks located at the Tuxpan Maritime Terminal with a capacity of 100,000 barrels each, a research study to determine the best option for the discharge of refined products from tankers and pipelines into these storage tanks and auxiliary services and integration.As of April 2018, two ofDecember 2022, the three key phases of this project were completed,have been completed: theand the transporttransportation phase of thecurrently operating. The third phase,fully operational, and the storage system is 97.2% complete. We arranged an extension with the Ministry of Finance and Public Credit to postpone the date by which this final phase may be completed.phase. The five storage tanks under the storage system phase have been delivered to the Tuxpan storage and port services terminal and are in operation. Additionally,operation as of the booster pumps, firefighting system (including a55,000-barrelwater storage tank and the electrical substation 3), the heating, ventilation, and air conditioning system for the variator room and the measuring skids have been delivered. The integrations, anilines, telecommunication equipment, perimeter wall and control room adjustments were partially delivered.date of this annual report.
pre-investment
studies phase, Tuxpan-Mexico
pipeline, which is Rehabilitation of the National Refining System
In 2019, we established a rehabilitation program to modernize and stabilize the National Refining System. The rehabilitation program is implemented by Pemex Industrial Transformation and seeks to address critical risks in our facilities, restore asset reliability and contribute to improvements in efficiency and stabilization in crude oil processes. The rehabilitation program seeks to address the critical risks of the facilities, restore the reliability of the assets and contribute to the improvement of the efficiency and stabilization of the crude oil process. Since the inception of this program began in September 2019 through December 31, 2021, 532022, 57 major repairs and 184238 minor repairs were completed in processing plants; in main services 19process units; 28 major repairs and 86 minor;138 minor repairs in main services; and 27 major repairs and 55 minor repairs in storage tanks 22 major and 39 minor repairs.tanks.
New Dos Bocas Refinery
On December 7, 2018, the Board of Directors of Petróleos Mexicanos, in accordance with resolutionParaiso,Paraíso, Tabasco, as part of our institutional strategy plan.
CA-161/2018,
authorized the construction of a new refinery in Dos Bocas in On July 2, 2020,August 10, 2022, the Board of Directors of Petróleos Mexicanos, in accordance with resolutionCA-053/2020, CA-092/2022, authorized the revised business strategy, including FEL II(Front-EndLoading II) phaseproject “New Refinery in Dos Bocas, Paraíso, Tabasco, named Olmeca Refinery” and approved the project's scope and updated budget. We expect the Olmeca refinery in Dos Bocas, Paraíso, Tabasco to be in the stabilization stage during the first half of this project.2023. During the second half of 2023, we expect to gradually increase crude oil processing as the different processing units come into operation. The FEL methodology is applied to investment project management by usingstable operation of the following three stages: FEL I (visualization), FEL II (conceptualization) and FEL III (definition) eachrefinery will depend on the stabilization of which must be approved.the different processing units. As of July 2, 2020, the Class IV (+30% to-25%)cost estimatedate hereof, refinery precommissioning works are under way. The current authorized budget for the project is U.S. $8,918.5 million. Class IV estimates correspond to$15,963.0 million including VAT, plus U.S.$853.3 million for start-up, including VAT.
Deer Park Refining Limited Partnership
On March 31, 1993, PMI NASA acquired 49.995% of the FEL method and include all projected costs excluding external works, cost escalation, contingency costs and administrative expenses.
The investment in order to obtain the necessary corporate approvals from the Board of Directors of Petróleos Mexicanos and other relevant bodies.
Indications of impairment were identified, and detailed engineering (Phase I). In addition, long lead procurementat the end of modular units continues, and a significant number of them are already2021, impairment tests were carried out on site. The fabrication continues of vertical and spherical tanks that constitutes the storage areaamount of the refinery. Studiesinvestment recognized in Deer Park, and basic engineering servicesthe result was the recognition of a total impairment in the book value of the investment as of December 31, 2021 of Ps. 6.7 billion which is presented as a separate line item in the statement of comprehensive income.
Prior to the acquisition, the participation in Deer Park was recognized as a joint venture. As a result, the participation was recognized in our Consolidated Financial Statements using the equity method.
Deer Park's activity before business combination was recognized as a commission fee between the joint venture parties and now, the core activity is the sale of refined products to third parties. (see Note 12 of the Consolidated financial statements included in this annual report).
Refining Processes and Capacity
Our refining production processes include the following:
• Atmospheric distillation. This process heats crude oil in a tube furnace at atmospheric pressure to distill refined products. The primary products produced are gasoline, jet fuel, diesel, atmospheric gas oil and atmospheric residual crude oil.
• Vacuum distillation. This process heats crude oil or other feedstock in a vacuum distillation column, which is operated at low pressures. The objective of this process is to maximize production of heavy vacuum gas oil, which is produced by boiling crude oil.
• Cracking. This process uses either heat and pressure or a catalytic agent to increase gasoline yields from crude oil.
• Reforming processes. These processes use heat and catalysts to transform smaller or unstable hydrocarbon molecules into larger, more useful refining or blending products. For example, we use reforming processes to convert low octane gasoline into higher octane stocks that are suitable for blending into finished gasoline and to convert naphtha into more volatile, higher octane products.
• Hydrotreatment or residual hydrocracking. This process uses a catalyst and hydrogen at high temperature and pressure to remove sulfur, nitrogen and some aromatic compounds. Hydrotreatment also processes some lighter liquid product off-take. The new processes also include the saturation of aromatic compounds.
• Alkylation. This polymerization process unites olefins and isoparaffins. Butylenes and isobutanes are combined with sulfuric acid or hydrofluoric acid to rearrange straight-chain hydrocarbon molecules into branched-chain products. Pentanes and hexanes, which are difficult to reform, are isomerized using aluminum chloride and other precious-metal catalysts. Normal butane may be isomerized to provide a portion of the isobutene feed needed for the 17alkylation process. The process units have been completed.
produces a high octane, low sensitivity blending agent for gasoline.• Coking. This process is a severe method of thermal cracking used to upgrade heavy residuals into lighter products or distillates. Coking produces straight-run gasoline (coker naphtha) and various middle-distillate fractions used as catalytic feedstock, thus generating a concentrated solid material.
These production processes together constitute our production capacity as set forth in the table below.
Deer Park Capacity by Production Process
| At December 31, | |||||
| 2022 | |||||
| (in thousands of barrels per day) | |||||
| Production Process | |||||
| Atmospheric distillation | 340 | ||||
| Vacuum distillation | 180 | ||||
| Cracking | 75 | ||||
| Reforming | 69 | ||||
| Hydrotreatment | 366 | ||||
| Alkylation | 21 | ||||
| Coking | 96 | ||||
Source:Deer Park's statistical and accounting information systems
Production
We produce a wide range of Contentsproducts derived from crude oil and natural gas, including LPG, gasoline, jet fuel, diesel, fuel oil, aromatics and other refined products. In 2022, we produced 310.9 thousand barrels per day.
The following table sets forth, by category, our production of petroleum products for the year ended December 31, 2022.
Deer Park Production
| At December 31, | |||||
| 2022 | |||||
| (in thousands of barrels per day) | |||||
| Refinery Crude Oil Runs | 276.5 | ||||
| Refined Products | |||||
| Liquefied petroleum gas | 12.6 | ||||
| Gasoline | |||||
| RUL | 90.1 | ||||
| PUL | 16.7 | ||||
| Gasoline Components | 14.9 | ||||
| Total | 121.7 | ||||
| Jet fuel | 24.9 | ||||
| Diesel | |||||
| Diesel | 89.0 | ||||
| Ultra-Low Sulfur Diesel | 11.3 | ||||
| Others | — | ||||
| Total | 100.3 | ||||
| Heavy Oils and Residuals | 14.0 | ||||
| Coke | 20.1 | ||||
| Aromatics | 4.2 | ||||
| Process Gases | 11.1 | ||||
| Sulfur | 2.2 | ||||
| Total | 51.5 | ||||
| Total refined products | 310.9 | ||||
Note: Numbers may not total due to rounding.
Source: Deer Park's statistical and accounting information systems
Our refining production mostly consists of gasoline, diesel and heavy oils. In 2022, gasoline represented 39.2%, diesel fuel represented 32.2%, jet fuel represented 8.0%, LPG represented 4.0% and heavy oils represented 4.5% of total petroleum products production. The remainder, 12.1% of our production, consisted of a variety of other refined products.
Variable Refining Margin
During 2022, the Deer Park Refining Limited Partnership recorded a variable refining margin of U.S. $18.8 per barrel.
Deer Park Sales
Following you will find a table with Deer Park Sales Volumes:
Value of Deer Park’s Sales
| At December 31, 2022 | ||||||||
| (in thousands of barrels per day) | (in millons of U.S. dollars) | |||||||
| Refined Products | ||||||||
| Gasoline | ||||||||
| RUL | 90.6 | U.S.$ | 3,891.2 | |||||
| PUL | 16.2 | 717.1 | ||||||
| Components | 17.7 | 563.9 | ||||||
| Total | 124.5 | U.S. $ | 5,172.2 | |||||
| LPG | 19.3 | U.S.$ | 376.5 | |||||
| Jet Fuel | 25.1 | 1,272.6 | ||||||
| Diesel | ||||||||
| Diesel | 89.0 | 4,618.7 | ||||||
| ULSH | 11.3 | 506.0 | ||||||
| Total | 100.3 | U.S.$ | 5,124.7 | |||||
| Heavy oils and Resids | 9.5 | 319.0 | ||||||
| Coke | 19.7 | 184.6 | ||||||
| Aromatics | 11.6 | 702.0 | ||||||
| Process Gases | 10.4 | 163.0 | ||||||
| Sulfur | 2.2 | 70.2 | ||||||
| Total | 53.5 | U.S.$ | 1,438.8 | |||||
| Total Refined Products | 322.8 | U.S.$ | 13,384.7 | |||||
Note: Numbers may not total due to rounding.
Source: Deer Park's statistical and accounting information systems
Deer Park's Capital Expenditures and Budget
Investments
Deer Park’s Capital Expenditures
| (in million of U.S. Dollars) | ||||||||
Year ended December 31, (1) | Forecast 2023 | |||||||
| 2022 | ||||||||
| Capital Projects | U.S.$ | 135.60 | ||||||
| Catalyst | 27.8 | |||||||
| Turnaround | 148.2 | |||||||
| Total Capital Spend 2022 | 311.6 | |||||||
| Forecast Capital Spend 2023 | U.S.$ | 204.50 | ||||||
Source: Deer Park's statistical and accounting information systems
Gas and Aromatics
Natural Gas and Condensates
All wet natural gas production is directed to our gas processing facilities. As of December 31, 2021,2022, we owned nine facilities.
The following facilities are located in the Southern region:
•Nuevo Pemex
•Cactus
•Ciudad Pemex
•La Venta
•Matapionche
•The Morelos, Cangrejera and Pajaritos facilities form the Coatzacoalcos gas processing complex (which we refer to as a GPC)"GPC"):
•Morelos
•Cangrejera
•Pajaritos
is non-operational
as of the date of this annual report.The following facilities are located in the Northern region:
•Burgos
•Poza Rica
•Arenque
Petrochemical Complexes
In addition to our gas processing facilities, we also own the following two petrochemical complexes:
•Independencia
•Cangrejera
The following tables set forth our processing capacity, as well as our total natural gas processing and production, for the five years ended December 31, 2021.
2022.Gas and Aromatics’ Processing and Production Capacity
(1)
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 (4) | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||
(in millions of cubic feet per day, except where otherwise indicated) | (in millions of cubic feet per day, except where otherwise indicated) | |||||||||||||||||||||||||||||||||||||||||||||
Sweetening plants | Sweetening plants | |||||||||||||||||||||||||||||||||||||||||||||
Sour condensates (2) | 144 | 144 | 144 | 144 | 144 | Sour condensates(2) | 144 | 144 | 144 | 144 | ||||||||||||||||||||||||||||||||||||
Sour natural gas | 4,523 | 4,523 | 4,523 | 4,523 | 4,523 | Sour natural gas | 4,523 | 4,523 | 4,523 | 4,523 | ||||||||||||||||||||||||||||||||||||
Natural gas liquids recovery plants | Natural gas liquids recovery plants | |||||||||||||||||||||||||||||||||||||||||||||
Cryogenics | 5,912 | 5,912 | 5,912 | 5,912 | 5,912 | Cryogenics | 5,912 | 5,912 | 5,912 | 5,912 | ||||||||||||||||||||||||||||||||||||
Natural gas liquids fractionating (2) | 569 | 569 | 569 | 569 | 569 | Natural gas liquids fractionating(2) | 569 | 569 | 569 | 569 | ||||||||||||||||||||||||||||||||||||
Processing of hydrosulfuric acid | 229 | 219 | 219 | 229 | 219 | Processing of hydrosulfuric acid | 229 | 229 | (4) | 229 | (4) | 229 | ||||||||||||||||||||||||||||||||||
Aromatic compounds and derivatives (3) | 1,734 | 1,734 | 1,734 | 1,734 | 1,734 | Aromatic compounds and derivatives (Cangrejera and Independencia)(3) | 1,675 | (4) | 1,734 | 1,734 | 1,734 | |||||||||||||||||||||||||||||||||||
(1)Production capacity refers to aromatic compounds and derivatives.
(2)In thousands of barrels per day.
(3)In thousands of metric tons per year.
(4)Reflects adjustments made to Pemex BDI.
Source: Pemex BDI.
Natural Gas, Condensates and Aromatics’ Processing and Production
(1)
Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2021 vs. 2020 | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of cubic feet per day, except where otherwise indicated) | (%) | (in millions of cubic feet per day, except where otherwise indicated) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Processing | Processing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wet gas | 2,628.2 | 2,765.4 | 2,826.3 | 2,951.9 | 3,237.3 | (5.0 | ) | Wet gas | 2,770.2 | 2,628.2 | 2,765.4 | 2,826.3 | 2,951.9 | 5.4 | |||||||||||||||||||||||||||||||||||||||||||||
Sour gas | 2,224.6 | 2,327.6 | 2,395.6 | 2,492.5 | 2,687.7 | (4.4 | ) | Sour gas | 2,392.0 | 2,224.6 | 2,327.6 | 2,395.6 | 2,492.5 | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||
Sweet gas (2) | 403.6 | 437.8 | 430.7 | 459.5 | 549.6 | (7.8 | ) | Sweet gas(2) | 378.2 | 403.6 | 437.8 | 430.7 | 459.5 | (6.3) | |||||||||||||||||||||||||||||||||||||||||||||
Condensates (3)(4) | 14.0 | 22.6 | 22.4 | 27.4 | 32.4 | (38.1 | ) | Condensates(3)(4) | 12.8 | 14.0 | 22.6 | 22.4 | 27.4 | (8.6) | |||||||||||||||||||||||||||||||||||||||||||||
Gas to natural gas liquids extraction | 2,306.0 | 2,497.4 | 2,651.2 | 2,781.7 | 3,199.5 | (7.7 | ) | Gas to natural gas liquids extraction | 2,456.5 | 2,306.0 | 2,497.4 | 2,651.2 | 2,781.7 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||
Wet gas | 2,306.0 | 2,497.4 | 2,651.2 | 2,781.7 | 3,086.3 | (7.7 | ) | Wet gas | 2,456.5 | 2,306.0 | 2,497.4 | 2,651.2 | 2,781.7 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||
Reprocessing streams (5) | — | — | — | — | 113.2 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Production | Production | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dry gas (6) | 2,080.3 | 2,245.2 | 2,305.0 | 2,421.7 | 2,666.7 | (7.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas liquids (4)(7) | 171.1 | 207.4 | 221.3 | 240.1 | 280.3 | (17.5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquefied petroleum gas (4)(8) | 92.2 | 100.5 | 107.6 | 122.2 | 144.3 | (8.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dry gas(5) | Dry gas(5) | 2,279.8 | (13) | 2,080.3 | 2,245.2 | 2,305.0 | 2,421.7 | 9.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas liquids(4)(6) | Natural gas liquids(4)(6) | 160.8 | 171.1 | 207.4 | 221.3 | 240.1 | (6.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquefied petroleum gas(4)(7) | Liquefied petroleum gas(4)(7) | 92.2 | 92.2 | 100.5 | 107.6 | 122.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ethane (4) | 54.8 | 70.8 | 76.8 | 84.8 | 101.3 | (22.6 | ) | Ethane(4) | 45.8 | 54.8 | 70.8 | 76.8 | 84.8 | (16.4) | |||||||||||||||||||||||||||||||||||||||||||||
Naphtha (4) | 32.7 | 40.5 | 42.9 | 43.3 | 51.8 | (19.3 | ) | Naphtha(4) | 32.5 | 32.7 | 40.5 | 42.9 | 43.3 | (0.6) | |||||||||||||||||||||||||||||||||||||||||||||
Sulfur (9)(10) | 182.9 | 265.1 | 376.6 | 442.6 | 551.3 | (31.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Methanol (9) | 148.5 | 138.1 | 141.5 | 148.4 | 115.8 | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Aromatic compounds and derivatives (9)(11) | 474.6 | 336.4 | 919.6 | 569.5 | 622.0 | 41.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Others (9)(12) | 283.7 | 233.5 | 496.5 | 216.5 | 225.5 | 21.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sulfur(8)(9) | Sulfur(8)(9) | 290.1 | 203.4 | (12) | 265.1 | 376.6 | 442.6 | 42.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Methanol(8) | Methanol(8) | 137.5 | 148.5 | 138.1 | 141.5 | 148.4 | (7.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Aromatic compounds and derivatives(8)(10) | Aromatic compounds and derivatives(8)(10) | 446.3 | 474.6 | 336.4 | 919.6 | 569.5 | (6.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Others(8)(11) | Others(8)(11) | 302.1 | 319.7 | (12) | 266.4 | (12) | 499.8 | (12) | 219.3 | (12) | (5.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
Note: Numbers may not total due to rounding.
GPC= Gas Processing Complex
(1)Excludes operations of our exploration and production segment, which produced 4,692.8 million cubic feet per day in 2022.
(2)Includes sweet vapor from condensates.
(3)Includes internal streams.
(4)In thousands of barrels per day.
(5)Includes ethane reinjected into the natural gas stream.
(6)Includes stabilized condensates, reprocessing streams from the Cangrejera petrochemical complex and other streams for fractionating.
(7)Production from GPC, refineries and transfers from Pemex Exploration and Production.
(8)In thousands tons.
(9)Production of gas processing GPCs and refineries.
(10)Includes aromine 100, benzene, high octane hydrocarbon, toluene and xylene.
(11)Includes butanes, petrochemical specialties, pentanes, hexane, hydrogen, BTX liquids, isopentanes and petroleum products: naphtha gas, petrol octane base and heavy naphtha.
(12)Reflects adjustments made to Pemex BDI.
(13)La Venta gas processing complex requested to adjust the total production and dry gas venting on February 27, 2023, a date after the 2022 annual closing of the Pemex Industrial Transformation Institutional Database.
Source: Pemex BDI.
