Additional Note. Oil and gas contracts that are currently in force generate income for the State via the following mechanisms:
1.Remunerations1 stipulated in both License and Production Sharing Contracts are: Base Royalty and Contract Fees for Exploration Phase.
2.License Contracts include an Additional Royalty linked to the contractual value of hydrocarbons, as well as a Signing Bonus, both terms offered in bids during the bidding rounds.
3.Production Sharing Contracts include Remunerations in the form of Percentage of Operating Profit2, as offered in bids during the bidding round.
Source: National Hydrocarbons Commission, with information from the Mexican Oil Fund for Stabilization and Development (FMP).
1 Law of Income from Hydrocarbons (Ley de Ingresos sobre Hidrocarburos, “LISH”), second section, “Contract Remunerations”.
2 This remuneration is reported by the FMP as “Sales by the State”, and refers to the income from the government commercialization arm has paid to the FMP for hydrocarbons sales, in accordance with Article 27 of LISH. Does not include VAT, nor payments for sales services.