In connection to the statements made by the Director of Exploration & Production, regarding a reduction in PEMEX’s production target for this year. It is important to highlight, that even though this is a likely outcome considering current rates of investment, PEMEX is expecting to collaborate with several companies in order to maintain the original production target of 2.400 million barrels per day of crude oil established in the annual budget.

Although the recently announced budget adjustment to meet the financial balance could impact production, PEMEX confirms that the program is seeking to minimize the impact on crude oil and gas production, as well as on reserves replacement.

In order to diminish the effect of budgetary reductions on investment projects related to hydrocarbons production, several initiatives are currently being analyzed which will allow for additional participation from the private sector on PEMEX’s investment projects, taking advantage of additional tools and flexibility granted by the approval of the Energy Reform.

Among these initiatives, PEMEX is considering the financing of wells and infrastructure works, as well as the development of specific projects that can be carried out with participation from other companies.

About Pemex

Pemex, Mexico's state oil company, is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene and diesel. Pemex operates 344 production fields, 6,382 production wells, 225 off-shore platforms, 6 refineries, 8 petrochemical complexes, 7,896 km of gas pipeline, 4,548 km of oil pipeline, and 19 LPG distribution terminals.