INVESTING IN MEXICO S PETROLEUM OPPORTUNITIES ECONOMIC & LEGAL WORKSHOP

Transcription

1 CERTIFIED WORKSHOP: BAC ACCREDITED INVESTING IN MEXICO S PETROLEUM OPPORTUNITIES ECONOMIC & LEGAL WORKSHOP June 2015 Mexico City, Mexico BY ATTENDING THIS WORKSHOP YOU WILL: Determine the various methods by which oil and gas investment can occur in Mexico including through joint ventures and farmouts with Pemex Carry out detailed economic analysis of the PSC contract and fiscal systems in Mexico Pinpoint the legal and contractual issues involved in Mexico investments "Very helpful for contract purposes and decision making regarding participation Alberto Rial Director of Financial Planning MONCLOVA PIRINEOS GAS Receive an independent, analytical look at the final shallow water contract revisions, allowing you to finalise your Round One Bids before the final deadline Mitigate your project risk by establishing durable joint venture relationships WORKSHOP LEADERS: DR. A. PEDRO H. VAN MEURS VAN MEURS CORPORATION Worked on fiscal oil and gas issues for more than 80 governments worldwide Other languages spoken: Dutch, French and Spanish Over 40 years experience in the Industry J. JAY PARK Q.C. Managing Partner PARK ENERGY LAW & PETROLEUM REGIMES' ADVISORY 35 years of practice in the oil & gas industry Involved in the design of Mexico petroleum investment contracts since 2003 Direct legal experience in over 40 countries Voted World s Leading Oil & Gas Lawyer FROM THE PROUD PRODUCERS & ORGANISERS OF RENOWNED EVENTS:

2 INVESTING IN MEXICO S PETROLEUM OPPORTUNITIES ECONOMIC & LEGAL WORKSHOP Detailed, independent economic and legal analysis of Mexico s petroleum opportunities WORKSHOP OVERVIEW: This workshop will provide you with detailed, independent economic and legal analysis of Mexico s petroleum opportunities. It will include an analysis of the emerging Mexican petroleum regime for all the types of petroleum awards to be made, together with a focus on the upcoming first shallow water bid round based on the final terms to be published on May 29, Participants will study the key clauses within the model PSC contract and identify how to mitigate risks and create long lasting relationships. You will also calculate the effect that the fiscal frameworks will impact on your potential projects including joint ventures and farmouts with Pemex. The detailed focus of this unique workshop will help participants to prepare for the Round One Bids. WHO SHOULD ATTEND THIS WORKSHOP: This workshop is applicable to those professionals interested in Mexico s petroleum opportunities generally, with a detailed focus on the Round One Shallow Water bid round for analytical purposes. Participants will be drawn from both the private and government sector who need to analyse the contracts on offer and the investment opportunities available including: Legal counsel Country managers Commercial and business development managers Contract managers Government officials Negotiators Business planners and analysts "Very comprehensive, easy to follow with in-depth discussion of the topics. Tax advisors and fiscal issue planners Economists Accountants Omar Trias Legal Advisor TOTAL

3 MODULE 1 BID PROCEDURE & MODEL CONTRACT ANALYSIS J. JAY PARK QC & DR. A. PEDRO H. VAN MEURS INTRODUCTORY COMMENTS Independence of comments DEVELOPMENTS IN THE BID PROCEDURE AND MODEL CONTRACT Comparison December 11, 2014 and March 25, 2015 versions of Bid Procedure and Model Contract Upstream vs Midstream issues Contract Term and Exploration Period Minimum Work Obligations Measurement Point definition Contract Price, Netback procedure Other issues Comparison March 25, 2015 and May 29, 2015 versions of Bid Procedure and Model Contract FISCAL TERMS Rentals, royalties and corporate income tax Contraprestacion to the contractor for cost recovery Cost recovery framework Budget Process Adjustment Mechanism Options - the IRR sliding scale IRR concept Volume Progressivity Economic analysis of the proposed IRR system Gold Plating analysis Conclusion on the competitiveness of the fiscal terms COUNTRY RISK AND CONTRACT STRUCTURE Early termination provisions Discretionary decision making Quantity of administrative decisions Necessity of administrative functions Anti-corruption provisions TENURE AND TIMELINES CWC School for Energy has very good material and information to share. It is a great source of information for oil company employees. Timelines for bid preparation Contract term Timelines for evaluation and development COMPETITIVE FRAMEWORK Large company association prohibition Prohibition to participate in more than one consortium Percentage share of non-operators Block number restrictions Jose Maria Bela Boya Operations Onshore MARATHON OIL EG Training for the competitive edge

4 INVESTING IN MEXICO S PETROLEUM OPPORTUNITIES ECONOMIC & LEGAL WORKSHOP OTHER ISSUES RELATED TO MODEL CONTRACT AND BID PROCEDURES Relinquishment of the contract area Relinquishment of deep formations Bid formula Significant gas discovery provisions Contradictory provisions on Petroleum Operations Secretaría de Hacienda y Crédito Público (SHCP) Comisión Reguladora De Energía (CRE) Mexico Petroleum Fund PEMEX - Asignacion - Converting the Asignacion - Round Zero - Migration of Former Contracts (MSCs, ISCs) - Participation Role of Pemex OTHER OPPORTUNITIES: PEMEX ALLOCATIONS AND JOINT VENTURE OPPORTUNITIES PEMEX Allocation Fiscal Terms PEMEX Farm Out and Joint Venture Procedures REPORT" CARD ON MEXICO S NEW PETROLEUM REGIME MODULE 2 MEXICO OIL & GAS LEGAL FRAMEWORK J. JAY PARK QC MEXICO S NEW PETROLEUM REGIME Constitutional Changes Impact of Previous Constitutional Provisions New Constitution Provisions Opportunities resulting from Constitutional Change Issues arising from New Constitutional Provisions Secondary Legislation Hydrocarbon Law - Key Provisions of Hydrocarbon Law Hydrocarbon Revenue Law - Key Provisions of Hydrocarbon Revenue Law Subordinate Regulations Other Secondary Laws Host Government Contracts in Mexico before Reform Multiple Services Contracts Integrated Services Contracts Host Government Contracts in Mexico under the Secondary Laws Licence Contract Profit Sharing Contract Production Sharing Contract - With Cost Recovery - Without Cost Recovery Service Contract The New Structure of Regulation in Mexico SENER - Policy Functions - Approval Functions Comisión Nacional de Hidrocarburos (CNH) - Awarding Host Government Contracts o Bid Rounds - Administering and Regulating Performance SELECTING THE PETROLEUM CONTRACT TYPE TO SUIT THE OPPORTUNITY Mexico's Petroleum Opportunities Onshore Exploration Shallow Offshore Exploration Deep Water Offshore Exploration Onshore Non-Conventional Migration of Service Contracts Customising the Petroleum Contract for the Opportunity STRATEGIES FOR BIDDERS IN MEXICO Qualification Issues The challenges of the public international bid round Joint Venture bids - Selecting the JV partner Joint Study and bidding agreement POST-AWARD ADMINISTRATION OF PETROLEUM CONTRACTS The role of the Ministry The role of CNH The role of PEMEX Implications for the country ANALYSING THE STRENGTHS AND WEAKNESSES OF MEXICO S PETROLEUM REGIME

5 EDUCATION Ph.D. in Economic Geology (cum laude) University of Utrecht in the Netherlands (1970) LANGUAGES English, French, Dutch, Spanish PUBLICATIONS World Rating of Oil and Gas Terms, 2012 COURSES World Fiscal Systems for Oil & Gas Advanced Fiscal Systems for Oil & Gas Production Sharing Contracts - Advanced Master Class World Fiscal Systems for Unconventional Oil & Gas PORTFOLIO AREA Legal, Fiscal and Contracts DR. A. PEDRO H. VAN MEURS During the last 40 years Pedro has worked on fiscal oil and gas issues with more than 80 governments around the world. He was a leading consultant in: Opening of the Newfoundland offshore for exploration and production Alaska Petroleum Profits Tax and the proposed gas pipeline contract Development of the first model contract for offshore China Production sharing, SPT and tax terms in Trinidad and Tobago Capitalisation of YPFB and 1996 petroleum law in Bolivia PSC s in Gabon and Bangladesh Creation of fiscal terms in Thailand and Pakistan Development of service contracts in Mexico and Kuwait He has hosted the World Fiscal Systems for Oil & Gas course and participated in training seminars in more than 30 countries in the world. While carrying out international consulting, he was for many years also president of a small Alberta petroleum company. Together with Barrows Inc., New York, he developed PETROCASH, which is the most comprehensive integrated database and computer model for World Fiscal Systems for Oil & Gas. "Excellent course. A privilege to be able to share in Pedro van Meurs knowledge. Mercedes Gutierrez Commercial Advisor SHELL

6 J JAY PARK, QC Jay Park QC is the Managing Partner of Petroleum Regimes Advisory and Park Energy Law. Jay has practised energy law for thirty-five years, with a specific focus on creating optimum petroleum regimes for states, and advising companies and states on upstream oil & gas transactions. He has advised oil and gas producers, marketers, pipeline companies, governments, banks and multilateral agencies such as the World Bank. Jay has been involved in the design of Mexico petroleum investment contracts since Jay s work has taken him to Albania, Algeria, Angola, Azerbaijan, Brazil, Brunei, Cambodia, Canada, Chad, China, Colombia, Comores, DR Congo, Egypt, Equatorial Guinea, Ethiopia, Egypt, France, India, Indonesia, Ireland, Iran, Iraq, Kazakhstan, Kenya, Kuwait, Lebanon, Libya, Malaysia, Mexico, Niger, Nigeria, Oman, Pakistan, Peru, Russia, Saudi Arabia, Somalia, Sudan, South Sudan, Tanzania, Thailand, Trinidad, Tunisia, Uganda, Ukraine, United Kingdom, United States of America, Vietnam, Venezuela and Yemen. Jay has assisted governments and state oil companies in the design or amendment of petroleum regimes in twelve countries, whose total resources comprise 49% of world oil reserves and 33% of world gas reserves. Jay is actively involved in legal education and training. He has instructed the "International Petroleum Transactions" course at the Faculty of Law of the University of Calgary from 2007 to He co-instructs five day training courses hosted by CWC School for Energy, including "World Legal Systems and Contracts for Oil & Gas" and "International Petroleum Joint Ventures". He has been recognized as a leading oil & gas lawyer by all of the rating publishers, including Who s Who Legal. "Clearly very experienced in this area & comfortable & confident in the role of instructor. Made the contentuser-friendly and detailed. Alanna Barron Commercial Advisor - International Operations East TALISMAN ENERGY INC

7 JOIN US ONLINE CWC School for Energy FOR FURTHER INFORMATION Website: Tel: Fax: Training for the competitive edge CWC School for Energy All rights reserved. CWC School for Energy I Regent House I Oyster Wharf I Lombard Road I London I SW11 3RB I UK