Guillermo Gonzalez Camarena 1100, 7th Floor, Santa Fe, Centro de Ciudad, Alvaro Obregon, 01210 Mexico City.P: 5255 5258 1000 • www.vonwobeserysierra.com

On July 20th, 2016 the National Hydrocarbons Commission (the “CNH”) published in the Federal Official Gazette (the “DOF”) the call and the rules (the “Rules”) for bid number CNH-R02-L01/2016 (the “Bidding”) by which the first bidding procedure for Round 2 begins. This bidding process is intended to award production-sharing contracts for the exploration and production of hydrocarbons in shallow waters located within the oil provinces of Tampico-Misantla, Veracruz and Southeastern Basins in the Gulf of Mexico. The Bidding comprised of 15 contractual areas or blocks, including some blocks which were not awarded in the

first and second bidding procedures of Round 1, where production-sharing contracts were previously awarded.

In general terms, the provisions set forth in the Rules are very similar to the rules of the first bidding procedures of Round 1 for shallow waters. Notwithstanding the foregoing, the CNH has incorporated in the Rules some additional terms and provisions to those provided in the preceding bidding procedures, which, among others, are as follows:

Access to the Data Room. In order to have access to the information contained in the data room, the interested parties must secure an information use license granted by the National Center of Hydrocarbons Information (the “Use License”), which represents an amount equal or higher than 8 million pesos. This license will be valid for 25 years and is governed by the Guidelines for the use of the information contained in the National Center of Hydrocarbons Information.

Once the interested party obtains the Use License, the CNH must be notified in order for them to grant an authorization for the interested party to access to the data room.

Forms of Participation. The Rules provide that the interested parties can participate simultaneously, both individually (the "Individual Bidder") or jointly (the "Joint Bidder”) subject to a new restriction by which such interested party cannot be deemed as bidder, either individually and/or jointly more than four times in the Bidding.

Validity of Contracts. The contracts to be awarded in the Bidding will be valid initially for 30 years, and may be extended twice. Each extension may be for a period of up to 5 years similar to the extension period established in the production-sharing contracts awarded in the first bidding of Round 1.

In addition, the Rules set forth diverse requirements and conditions to be met by the interested parties in order to participate in the Bidding, which, in general terms, are the following:

Registration Fee. Those interested in participating in the Bidding, and thus in all its stages, should pay a registration cost of 750 thousand pesos as a fee for “Capacity Assessment during the bidding process; registration process; reception of proposals and resolutions in a bidding to award production-sharing contracts for the exploration and production of hydrocarbons.”

The National Hydrocarbons Commission issued the calland the rules for the first bidding of Round 2

is

Guillermo Gonzalez Camarena 1100, 7th Floor, Santa Fe, Centro de Ciudad, Alvaro Obregon, 01210 Mexico City.P: 5255 5258 1000 • www.vonwobeserysierra.com

Prequalification Stage. The interested parties must prove, among others, experience as well as technical and operational capabilities. In this regard, they must to demonstrate:

• Creditable experience as an operator in exploration and/or production of hydrocarbons projects between 2011 and 2015.

• Capital investments in exploration and/or production of hydrocarbons projects totaling at least one billion dollars.

• To have been an operator in at least one project of exploration and/or production of hydrocarbons in shallow and/or deep waters, or participated as a partner in at least two projects of exploration and/or production of hydrocarbons in shallow and/or deep waters, in the last five years.

• Experience in industrial safety and environmental protection matters.•Total assets worth at least 10 billion dollars and have a credit rating of investment grade. Or, they must

demonstrate that they have a net worth of at least one billion dollars.

Calendar: Some of the relevant stages and dates for the Bidding are as follows:

StagePublication date of the final version of the Rules, which includes the contract.

Period to request access to the information contained in the data room and make the corresponding payment.

Access to the data room

Clarification period (3 stages)

Time frame to submit prequalification documentation.

List publication of the prequalified interested parties to participate in the Bidding.

Submission and opening of proposals.

Award

Deadline for contracts signing.

DateMarch 1st, 2017

August 1st, 2016 – December 2nd, 2016

August 1st, 2016 – March 21st, 2017

July 20th, 2016 – March 3rd, 2017

December 19th, 2016 – December 23rd, 2016

March 1st, 2017

March 22nd, 2017

March 24th, 2017

Within the following 90 days after the publication of the resolution for tender in the DOF.

As of yesterday, those interested in participating in the Bidding can request access to the data room and make the corresponding fee payments.

Guillermo Gonzalez Camarena 1100, 7th Floor, Santa Fe, Centro de Ciudad, Alvaro Obregon, 01210 Mexico City.P: 5255 5258 1000 • www.vonwobeserysierra.com

Von Wobeser & Sierra, S.C.

Mexico City, August 2nd, 2016.

Sincerely,

For additional information, please contact our experts:

Edmond Grieger, Partner:+ 52 (55) 5258-1048, egrieger@vwys.com.mx

Ariel Garfio, Associate:+ 52 (55) 5258-1048, agarfio@vwys.com.mx