1st Hydrocarbons Commercialization Contract Awarded By Mexico Upstream Regulator

On July 15, 2016, the Mexico's National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos) ("CNH") approved to officially engage P.M.I. Comercio Internacional, S.A. de C.V., ("PMI") – a subsidiary of our national oil company, Petróleos Mexicanos ("Pemex") – through a direct award procedure in order to provide the service of hydrocarbons commercialization for the Mexican State.

We understand PMI has never carried out this activity in the national market before. PMI is used to carry out international transactions. In our opinion, another challenge that PMI will have is to properly "negotiate" with Pemex the tariffs, responsibilities and liabilities in connection with logistics activities (such as transportation, storage, blending, conditioning, etc.).