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Country Report

Mexico upstream fiscal summary

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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.

Table of contents

  • Basis
  • Licence terms
    • Ring fencing
    • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • Cost oil - PSC only
    • Profit oil - PSC only
    • Corporate income tax
    • Fiscal treatment of decommissioning
    • Product pricing
    • Summary of modelled terms
  • Recent history of fiscal changes
  • Stability Provisions
  • Split of the barrel and share of profit
  • Effective royalty rate and maximum government share
  • Progressivity
  • Fiscal deterrence

Tables and charts

This report includes 38 images and tables including:

  • Timeline
  • Timeline detail
  • 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
  • Maximum government share – onshore, gas
  • Maximum government share – shelf, oil
  • Maximum government share – shelf, gas
  • Maximum government share – deepwater, oil
  • Maximum government share – deepwater, gas
  • 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
  • Bonuses, rentals and fees
  • Indirect taxes
  • Royalty rates
  • Price-based royalty
  • Liquids Royalty (%) by Price
  • Gas Royalty (%) by Price
  • Production - based royalty, liquid
  • Production - based royalty, gas
  • Liquids Combined Royalty (%) by Production
  • Gas Combined Royalty (%) by Production
  • R-factor royalty
  • Additional royalties
  • Profit sharing
  • Assumed terms by location - onshore
  • Assumed terms by location - shelf
  • Assumed terms by location - deepwater

What's included

This report contains:

  • Document

    Mexico upstream fiscal summary

    PDF 1.28 MB