In 2015, Mexico redirected licensing from Integrated Service Contracts (CIEPs) in favour of Petroleum Sharing Agreements and Concession-style Licenses to attract international investment. These contracts are awarded in highly transparent licence rounds. Shelf blocks are regulated under Petroleum Sharing Agreements in a very progressive fiscal system, consisting of price-driven royalties, a biddable profit share based varying with IRR, and income tax. Onshore and deepwater blocks are regulated under a concession-style License system, with royalties based on production, price, R-Factor and/or bid level in addition to the income tax.
Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.
This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.
Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.
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Effective royalty rate and maximum government share
Maximum government share – shelf, gas
Maximum government share – deepwater, oil
Maximum government share – deepwater, gas
In this report there are 40 tables or charts, including:
Current licence, equity and fiscal terms
Bonuses, rentals and fees
Liquids Royalty (%) by Price
Gas Royalty (%) by Price
Production - based royalty, liquid
Current licence, equity and fiscal terms: Table 6
Liquids Combined Royalty (%) by Production
Gas Combined Royalty (%) by Production
Assumed terms by location - onshore
Current licence, equity and fiscal terms: Table 9
Current licence, equity and fiscal terms: Table 10
Fiscal stability: Table 1
Split of the barrel - oil
Split of the barrel - gas
Share of profit - oil
Share of profit - gas
Effective royalty rate - onshore, oil
Effective royalty rate - onshore, gas
Effective royalty rate - shelf, oil
Effective royalty rate - shelf, gas
Effective royalty rate - deepwater, oil
Effective royalty rate - deepwater, gas
Maximum government share – onshore, oil
Economic analysis: Table 8
Economic analysis: Table 9
Economic analysis: Table 10
Economic analysis: Table 11
Economic analysis: Table 12
State share versus Pre-Share IRR - oil
State share versus Pre-Share IRR - gas
Investor IRR versus Pre-Share IRR - oil
Investor IRR versus Pre-Share IRR - gas
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Country report | Aug 2017
Mexico upstream fiscal summary
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