PEMEX Outlook

September 2010

Forward-Looking Statements
This presentation contains forward forward-looking looking statements. We may also make written or oral forward forward-looking looking statements in our periodic reports to the Comisión Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission, or CNBV), and the U.S. Securities and Exchange Commission (SEC), in our annual report, in our offering circulars and prospectuses, in press releases, in other written materials, and in oral statements made by our officers, directors or employees to third parties. We may include forward-looking statements that address, among other things, our: • drilling and other exploration activities; • import and export activities; • projected and targeted capital expenditures and other costs and; commitments revenues and liquidity, liquidity etc. etc • commitments, 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: • changes in international crude oil and natural gas prices; • effects on us from competition; • limitations on our access to sources of financing on competitive terms; • significant economic or political developments in Mexico; • developments affecting the energy sector; and • changes in our regulatory environment. 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. These risks and uncertainties are more fully detailed in PEMEX’s most recent Form 20-F filing with the SEC (www.sec.gov), and the prospectus filed with the CNBV, CNBV available through the Mexican Stock Exchange (www.bmv.com.mx). (www bmv com mx) These factors could cause actual results to differ materially from those contained in any forward-looking statement.

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Cautionary Note
Proved reserves estimates as of December 31, 2009 are consistent with the comments received from the independent engineering firms during the process of auditing Mexico’s reserves. reserves However, However as established in the Regulatory Law to Article 27 of the Constitution of the United Mexican States Concerning Petroleum Affairs, the National Hydrocarbons Commission is currently reviewing the hydrocarbon reserves evaluation reports. The Energy Ministry will disclose the hydrocarbon reserves y once this review is complete. p It is p possible that differences may y arise, ,p particularly y with of the country respect to the probable and possible reserves associated with the Chicontepec project. As of January 1, 2010, the SEC changed its rules to permit oil and gas companies, in their filings with the SEC, to disclose not only proved reserves, but also probable reserves and possible reserves. probable or p possible reserves described herein do not necessarily y meet the However, the p recoverability thresholds established by the SEC in its new definitions. Investors are urged to consider closely the disclosure in our Form 20-F “File No. 0-99” and our annual report to the CNBV, available at www.pemex.com. EBITDA(1) is a non-GAAP measure. Convenience translations into U.S. dollars of amounts in Mexican pesos from 2002 to 2007 have been made at the following exchange rates for the corresponding years in pesos per U.S.$: 2003, 11.23; 2004, 11.26; 2005, 10.77; 2006, 10.88; and 2007, 10.86. In addition, convenience translations into U.S. dollars of amounts in pesos for the income statement have been made at the following average exchange rates for the corresponding periods in pesos per U.S.$: 2008, 11.18; 2009, 13.52; and 1Q10, 12.79, unless otherwise noted. Finally, convenience translations into U.S. dollars of amounts in pesos for the balance sheet have been made at the established exchange rate at March 31, 2010 of 12.33 pesos per U.S.$. Such translations should not be construed as a representation that the peso amounts have been of could be converted into U.S. U S dollars at the foregoing or any other rate. rate Cumulative or annual variations are computed as compared to the same period of the previous year, unless otherwise specified.
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Content

Energy Reform Upstream Downstream Financial Highlights Key Investment Considerations

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Energy Reform PEMEX Value Creation
Special Contracting Regime
• Fl Flexible ibl procurement and contracting. • Contracts with performance incentives. • Schemes to develop and support suppliers and contractors in order to increase participation of Mexican providers.

Corporate Governance
• Board d with h the h participation of professional members. • Incorporation of best corporate practices.

Financial Flexibility
• I Independent d d financial program (without affecting our free cash flows). • Financing from external sources. • Citizen bonds. • Differentiated fiscal regime.

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Content

Energy Reform Upstream Downstream Financial Highlights Key Investment Considerations

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Reserves and Prospective Resources
Total Reserves by Area
as of December 31, 2009 MMMboe (billions of barrels of oil equivalent)

Basin Burgos and Sabinas Deep-waters Southeastern Veracruz Total(2)

3P(1)
0.9 0.6 23.4 0.2 43.1

2P(1)
0.6 0.2 17.5 9.7 0.2 28.2 20.5

1P(1)
0.4 0.1 12.6 0.8 0.2 14.0 10.2 Sabinas

Basin Production
Oil and Gas Gas

Tampico–Misantla (ATG) 18.5

Sabinas

B Burgos Deep sea exploration Gulf of Mexico 0. 3

Equivalent to (years of production)(2) 31.3

P Prospective ti R Resources
Basin Burgos Deep waters in the Gulf of Mexico Sabinas Southeastern Tampico-Misantla (ATG) Veracruz Y Yucatán tá Pl Platform tf Total(2) MMMboe 3.1 29.5 0.3 16.7 1.7 0.7 03 0.3 52.3

TampicoTampi Misantla coMisan tla19 .2

Veracruz

d

Southeastern

(1) “3P” means the sum of proved, probable and possible reserves; “2P” means the sum of proved and probable reserves; and “1P” means proved reserves. (2) Numbers may not total due to rounding.
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Historical Trend of the Reserves Replacement Rate
MMboe

2,000 1,500 1 000 1,000 500 0 25.5% 2003 22.7% 2004 26.4% 2005 44.7% 56.9% 59.2% 59.7% 65.7% 71.8% 41.0% 2006 50.3% 2007 2008 102.1%

128.7%

77.1%

2009

Production

1P reserves replacement rate(1)

3P reserves replacement rate

2.5 2 1.5 1 0.5 0

1.9 15 1.5 14 1.4 1.2 1.3

2.2 1.7

2003

2004

Exploration Investment (U.S.$ billion)

2005

2006

2007

2008

2009

(1) Includes delineations, developments and revisions.
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Upstream Exploration Strategy: Deep Waters

Perdido

1 2
Southern Gulf of Mexico Gulf of Mexico “B”

Area 1. Perdido folded belt 2. Oreos 3 Nancan 3. 4. Jaca-Patini 5. Lipax

Geological Risk Low-Moderate Moderate-High High Moderate-High Moderate Low-Moderate (Western)

Water depth
(meters) >2000 800-2000 500 2500 500-2500 1000-1500 950-2000 1500-2000 600-1100 850-1950 450-2250 650-1850

Prospective resources
(MMboe) 100-600 40-130 35 290 35-290 90-260 50-200 100-480 65-300 20-270 80-350 90-250

3 4 5

7
6

9 8

6. Holok
Heavy oil Light oil Gas / Light oil

Moderate-High (Eastern) High Hi h High Moderate

7. Temoa 8 H 8. Han 9. Nox-Hux

These nine areas have been defined as the most important in Mexican deep waters, considering economic value, prospective size, hydrocarbon type, geological risk, proximity to production facilities and environmental restrictions as the most relevant criteria.
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Light Oil Trend with More than 1,100 MMboe of Total Reserves
Xux-Tsimin:
 Giant complex with more than 1,170 MMboe of total reserves.  Located close to May field.  Well productivity of approximately 6,000 bd (barrels per day) of oil and 20 MMcfd million cubic feet per day of gas.  Oil density of 43° API (gas and condensate).
Number of fields
200 180 160 140 120 100 80 60 40 20 0 11 14 35 28 10 < 0.5 <1 <2 <4 <8 < 16 < 32 < 64 < 128 < 256 < 512 1 68 119 98 69 132

Campo Tsimin

Size of Discoveries in the Gulf of Mexico*
147 148 150 158

 Located in shallow waters and close to the shore.  High expectations for making new discoveries around this area.  Delineation in progress.

Xux – Tsimin (1P = 227 MMboe)

< 0.125 < 0.25

< 1,024 < 2,048

Proved reserves, MMboe
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* Source: Mineral Management Service, Department of the Interior, U.S. Federal Government.

Heavy Oil Trend with more than 1,200 MMboe of Total Reserves
Producing g well

Ayatsil-Tekel:
Bok Tunich Na b Numa n

Delineation well 500 100 DL 1 DL 1 Tson Pohp Non-productive well Drilling well Platform Pipe line

 Giant complex with more than 725 MMboe of total reserves.  Located close to Maloob field.  Well productivity of approximately 5,000 bd using electric submersible pumps (ESP) (ESP).  Oil density of 12° API.  Development plan in progress. Pit- Baksha:  Giant complex with more than 510 MMboe of total reserves.
Number of fields

Lem

Kanche Kayab DL 1 Yaxiltun

Baksha

Pit

Tekel Ayatsil

DL 1

PP-M-B PP-M-A PP M AMaloob PB-KuD H PPL Zaap-C PPPPZaap 3 Zaap-A Zaap-D E-Ku-A2
3 1 2

Bacab Lum-A PP-Bacab-A PP-Ku-S

E-Ku-A2 Ku
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40 0 40.0 20.0 0.0 < 0.125 < 0.25 < 0.5 <1 <2 <4 <8 < 16 < 32 < 64 < 128 < 256 < 512 < 1,024 < 2,048 11 14 35 28 10 1 68 119 98 69 132

Size of discoveries in the Gulf of Mexico*
147 148 150 158

 Development based on connection with Ayatsil-Tekel.  Well productivity of approximately 4,500 bd using ESP.  Oil density of 12° API.  Development plan in progress.

Ayatsil-Tekel-Pit-Baksha (1P = 387 MMboe) ( )

Proved reserves, MMboe * Source: Mineral Management Service, Department of the Interior, U.S. Federal Government.
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PEMEX Production is Stabilizing
Daily y Crude Oil Production ( (Mbd) )  Production in other fields increased by 9.4% in 2009. Cantarell’s share of production d ti h has d decreased d over recent t yeats, but increased production in other fields has offset this decline, maintaining total production. production

 Actions taken in Cantarell to reduce decline rate levels include:
1. Intensive major workovers; 2. Control of water-oil and gas–oil contact; 3. Pressure increase in the gas cap through gas injection, in order to maintain pressure in the oil column; and 4. Control to facilitate gravity drainage, resulting in a quasi-constant oil thickness.

Akal Block
Jan 2006 - Feb 2010
2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0
87 89 91 93 95 97 99 101 103
Produced gas from the transition zone Total oil production Pressure (@1488mvbmr)

107

105

jul/06

jul/07

jul/08

jul/09

ene/06

sep/06

ene/07

sep/07

ene/08

sep/08

ene/09

sep/09

nov/06

nov/07

nov/08

nov/09

mar/06

mar/07

mar/08

mar/09

ene/10

may/06

may/07

may/08

may/09

mar/10

may/10

jul/10

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Upstream Production Strategy: ATG (Chicontepec)
Characteristics
• • • • Area: 3,731 km2 Comprised of 29 fields Oil gravity: 18-45° API Reserves (MMMboe)
(1)
HIDALGO CUENCA DE CHICONTEPEC VERACRUZ FAJA DE ORO TERRESTRE GULF OF MEXICO

Current structure
• • • Drilling rigs: 78 Oil production:

- 1P: 0.8 - 2P: 9.7 - 3P: 18.1

TUXPAN

Operating wells: 1,070
POZA RICA

FAJA DE ORO MARINA

 29 Mbd as of December 31, 2009  48 Mbd as of September 19 2010 • • •

PALEOCANAL DE CHICONTEPEC
PUEBLA

Current cumulative production represents only one percent of project´s total reserves. C Complex l reservoir i geology l coupled l d with i hl low permeability bili impacts i well ll productivity. d i i Therefore, exploitation demands an evolving strategy based on rapid assimilation of new technologies and best operating practices.
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Field Labs
Technological innovation and implementation of better exploitation approaches can be achieved through the field labs scheme.

Goals

 F Focus i investments on value l creation.  Increase well productivity through the implementation of best practices.  Apply technological solutions to performing challenging activities.  Redesign wells and infrastructure works to correspond to the conditions of the applicable field.  Improve contractual terms with contractors to reduce costs.  Develop business models in accordance with the characteristics of Chicontepec, utilizing third parties.

Allocation of 10km2 per contractor to develop 5 areas.

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Mature Fields Represent an Opportunity to Generate Value
Remaining Reserves and Production to be Recovered (MMboe)
202 marginal fields

Proved reserves represent 29 percent of total reserves. This implies a great opportunity for reserves reclassification. Furthermore, 57 percent of total reserves are documented for production. Our goal is to document an additional 139 MMboe.

786 519 228
1P 2P 3P


590
139 451

Production Producción Additional Adicional

Benefits

Reserves Reservas

Documented Documentada

▪ ▪ ▪

Average production to be recovered in the 2011-2025 period is estimated at 94 Mbd of oil and 162 MMcfd of gas. Our objective j is to produce p 75 percent p of total remaining g reserves. With support from third parties, we should be able to recover these additional hydrocarbons, through technological improvements and increased operational efficiency. Increased execution capacity requires drilling wells in addition to those already included in our current project portfolio (an average of 500 wells between 20112025) in areas such as Cinco Presidentes, Muspac, Poza Rica and Burgos.
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Contracting Alternatives: Capability and Execution
 In the short term, PEMEX must leverage the use of Performance Contracts and alternative

contracts to develop internal capabilities in core businesses. businesses
 Each project’s execution strategy is defined as a function of its complexity and PEMEX’s internal

capability. The proposed contracting schemes are: Performance Contracts (PC), Field Labs (FL) and Transactional Service Contracts (TSC).

Internal Capability

Low High
Comple exity

Medium PC FL FL TSC TSC
Chicontepec

High FL TSC TSC

PC PC FL FL TSC

Medium

Internal Capability: • Human Resources • Technology • Cost Efficiency Complexity: • Scale • Technological Challenge • Service Market

Low
Deep waters

TSC

Mature Field (Reactivation)

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Exploration & Production Has Redefined Its Strategic Goals

• • • • •

Reach a replacement rate of 100 percent of proved reserves by 2012. Improve recovery ratios / reduce decline curve. Develop mature fields. Complete field laboratories and manage Chicontepec in accordance with new development strategies. i Develop new fields in shallow waters.

Production & reserves


Competitiveness

Reduce gas flaring to levels that comply with international standards. Utilize Performance Contract for blocks in mature fields, Chicontepec and initial production from fields in deep waters. Maintain competitive levels of development and production costs. discovery,

• •

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Content

Energy Reform Upstream Downstream Financial Highlights Key Investment Considerations

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Downstream Strategies
Refining
• •
Reduce operational gaps Eliminate subsidies

• • • • • •

Increase processing infrastructure according to primary production (sweetening, liquefied natural gas (LNG) recovery, liquid fractionation and sulphur recovery) Capture the benefits associated with rich non-associated gas production in the Northern Region. Increase transport capacity as required by production and demand. Encourage private sector participation in transport and storage. storage Diversify supply sources and analyze participation in LNG projects.

Natural gas

Focus on most profitable chains and redirecting resources from those non profitable:

Petrochemicals

• • •

Encourage participation of private sector in developing new projects and capturing business opportunities in selected chains. Increase efficiency and de-bottlenecking of profitable chains. Divest non-profitable and marginally profitable chains.
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Content

Energy Reform Upstream Downstream Financial Highlights Key Investment Considerations

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Investments (1)(2)(3)
(Billion pesos)

TOTAL 263.4
5.75 32.0

251.9 170.1 201.7

2.0%

PemexPetroquímica

220.0
2.0%
Pemex Gas y Pemex-Gas Petroquímica Básica PemexRefinación

113.7

122.9

127.0

150.4

12%

2003

2004

2005

2006

2007

2008

2009

2010 E(7)
84%
PemexExploración y Producción

10.7

10.9

10.8

13.8

15.6

18.1(4)

18.6(5)

20.8 E(6)(7)

U.S.$ billion

(1) (2) (3)

Figures may not total due to rounding Includes upstream maintenance expenditures Nominal figures

(4) (5) (6)

Pesos per U.S.$: 11.15 Pesos per U.S.$: 13.52 Pesos per U.S.$: 12.66

(7) “E” means Estimated

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Expected Sources and Uses of Funds, 2010
(U.S.$ billion)

Sources
15.2 38.0

Uses
20.8

14.8 8.9 8.0 8.4

• • • •

PEMEX’s financing program for 2010 amounts to approximately U.S.$15.2 billion. To date, we have obtained financing for approximately U.S.$8.2 billion. Additionally, we expect to obtain approximately U.S.$2.8 billion from export credit agency financing and contractor financing. Also, we expect to raise around U.S.$2.0 billion from bank loans, and between U.S$1.0 billion and US$2.2 billion from the capital markets (local and international). We expect to use a portion of these funds for liability management operations. In addition, we anticipate having approximately U.S.$3.25 billion in funds available from revolving facilities by the end of the year.

(1) Information as of August 31, 2010
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Debt Portfolio
Maturity Profile – Consolidated Debt
US$ billion

26 0  26.0

Outstanding amount as of June 2010: 48.8 U.S.$ billion

4.2 
Jul.10-Dec. 10

4.0 
Jan. 11-Jun. 11

5.2 
Jul.11-Jun. 12

4.9 
Jul.12-Jun. 13

4.5 
Jul.13-Jun. 14 Jul.14 through following years

Debt by Instrument
Percentage

Debt by Currency Exposure
Percentage

Other ECAs

Cebures

International Bonds

Bank Loans
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Content

Energy Reform Upstream Downstream Financial Highlights Key Investment Considerations

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Key Investment Considerations

•Third-largest Thi d l t producer d of f crude d oil il in i th the world ld •Eleventh-largest integrated oil company in the world •Solid credit profile •Improved regulatory framework •Proved reserves equivalent to more than 10 years of production •Key supplier of crude oil to the U.S. market •Sole producer of crude oil, natural gas and refined products in Mexico

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Investor Relations (+52 55) ( ) 1944 - 9700 ri@pemex.com

www.pemex.com
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