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.
Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.
Effective royalty rate and maximum government share
In this report there are 40 tables or charts, including:
Current licence, equity and fiscal terms
Bonuses, rentals and fees
Liquids Royalty (%) by Price
Current licence, equity and fiscal terms: Image 2
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
Assumed terms by location - shelf
Current licence, equity and fiscal terms: Table 10
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
Economic analysis: Table 3
Effective royalty rate - shelf, gas
Effective royalty rate - deepwater, oil
Economic analysis: Table 6
Maximum government share – onshore, oil
Economic analysis: Table 8
Maximum government share – shelf, oil
Maximum government share – shelf, gas
Maximum government share – deepwater, oil
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
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.
We work across every sector of oil, gas, power,renewables,chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.
Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.
At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.
Country report | Jun 2016
Mexico upstream fiscal summary
Have questions?Just let us know how to contact you and we will respond to you as soon as possible.