Mexico Upstream Fiscal and Regulatory Report - Continued licensing expected but 2018 election adds risks

  • ID: 4432680
  • Report
  • Region: Mexico
  • 41 pages
  • GlobalData
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Mexico Upstream Fiscal and Regulatory Report - Continued licensing expected but 2018 election adds risks

Summary

“Mexico Upstream Fiscal and Regulatory Report - Continued licensing expected but 2018 election adds risks”, presents the essential information relating to the terms which govern investment into Mexico’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Mexico’s upstream oil and gas investment climate.

Scope
  • Overview of current fiscal terms governing upstream oil and gas operations in Mexico
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Mexico
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Mexico’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making
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1 Table of Contents

2. Regime Overview

3. State Take Assessment

4. Key Fiscal Terms- Production Sharing Agreement
4.1. Royalties, Bonuses and Fees
4.1.1. Signature Bonus
4.1.2. Royalty
4.1.3. Exploration Rental Fees
4.1.4. Hydrocarbon Activity Tax
4.2. Cost Recovery
4.2.1. Limit on Recovery
4.2.2. Recoverable Costs
4.2.3. Uplift on Cost Recovery
4.3. Profit Sharing
4.4. Direct Taxation
4.4.1. Corporate Income Tax
4.4.2. Deductions and Depreciation
4.4.3. Withholding Tax
4.5. Indirect Taxation
4.5.1. Value Added Tax
4.5.2. Customs Duties
4.5.3. Landowner Compensation
4.5.4. Carbon Tax
4.6. Abandonment Fund
4.7. State Participation

5. Key Fiscal Terms - Royalty and Tax
5.1. Signature Bonus
5.2. Royalty
5.3. Additional Royalty
5.3.1. Deepwater: Profitability-Based Adjustment Mechanism
5.3.2. Onshore: Production-Based Adjustment Mechanism
5.4. Exploration Rental Fees
5.5. Hydrocarbons Activity Tax
5.6. Taxation
5.7. Abandonment Fund

6. Key Fiscal Terms - Pemex Assignments Regime
6.1. Royalties, Bonuses and Fees
6.1.1. Royalty
6.1.2. Exploration Rental Fees
6.1.3. Hydrocarbon Activity Tax
6.2. Profit Sharing Duty
6.3. Taxation

7. Regulation and Licensing
7.1. Legal Framework
7.1.1. Governing Law
7.1.2. Contract Type
7.1.3. Title to Hydrocarbons
7.2. Institutional Framework
7.2.1. Licensing Authority
7.2.2. Regulatory Agency
7.2.3. National Oil Company
7.3. Licensing Process
7.3.1. Migration of Assignments
7.3.2. Licensing Rounds
7.3.3. Registration and Prequalification
7.3.4. Bidding
7.3.5. Evaluation of Bids
7.4. License Terms
7.4.1. Duration and Relinquishments
7.4.2. Work Obligation
7.5. Local Content

8. Outlook

9. Appendix
9.1. Contact Us
9.2. Disclaimer

List of Tables
Table 1: Regime Overview
Table 2: Mexico, Production Sharing Agreement, Formula-Based Price for Crude Oil, Round 1
Table 3: Mexico, Production Sharing Agreement, Initial State Share of Profit (%),Rounds 1.1, 1.2& 2.1
Table 4: Mexico, Royalty and Tax,Applicable Signature Bonus (US$)
Table 5: Mexico, Royalty and Tax, Additional Royalty Adjustment Mechanism
Table 6: Mexico, Royalty and Tax,Winning Additional Royalty Bids (%), Deepwater Licenses
Table 7: Mexico, Royalty and Tax, Additional Royalty Adjustment Mechanism,Onshore
Table 8: Mexico, Royalty and Tax, Minimum Additional Royalty Rates (%), Round 1.3, 1.4, 2.2, 2.3
Table 9: Mexico, Royalty and Tax,Winning Additional Royalty Bids (%), Rounds2.2 and 2.3 (Onshore)
Table 10: Mexico, Pemex Assignment Regime, Profit Sharing Duty Rates (%), 2015 onwards
Table 11: Mexico, Schedule for Ongoing Licensing Rounds
Table 12: Mexico, Round 2.3, 2.4 and 3.1 Prequalification Requirements
Table 13: Mexico, Minimum Work Commitments, Round 3.1
Table 14: Mexico, Work Program Units, Round 3.1
Table 15: Mexico, License Duration (Years)
Table 16: Mexico, Work Unit Value, Prior to Round 1.4
Table 17: Mexico, Work Unit Value, Round 1.4 onward
Table 18: Mexico, Local Content Requirement (%)

List of Figures
Figure 1: Regime Flow Chart - Production Sharing Agreement
Figure 2: Regime Flow Chart - Royalty and Tax
Figure 3: Regime Flow Chart - Pemex Assignment Regime
Figure 4: Mexico, Indicative NPV10/boe, IRR and State Take Comparison, Internal
Figure 5: Mexico, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 6: Mexico, Legal Framework
Figure 7: Mexico, Institutional Framework
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