NATIONAL CONTENT September, 2015

Mandate Create a Specialized Unit Establish a methodology to measure national Content and verify its compliance.. Collect information to measure national content for hydrocarbon and electricity industries Design strategies for: - Industrial development - Supplier development - Attracting investment Create an Advisory Board to assist in the design of policies to foster development of domestic suppliers. Create a fund to strengthen national suppliers and contractors. 6 Create a national registry of domestic suppliers to identify their development needs. Art 125. Advisory board Art 125. Public Policy Art 46. InformationArt 46. National Content Art 127. Trust Fund Art 125. Supplier Registry Published August 11, 2014 (T RANSITIONAL EIGHTEENTH ) 1

National Content Methodology Mandate: To ensure that each contract for exploration and extraction of hydrocarbons includes a minimum percentage of local content. Purchase of domestic goods Domestic Labor Services Technology transfer Training Infrastructure Sources of local content: 2

National Content Methodology Percentage of local content Mexican Local Content GoodsLaborServicesTraining Technology transfer Infrastructure % 35% Exploration and Extraction of Hydrocarbons 3

Expenses incurred in Mexico to improve the urban and rural environment Investment in national territory Expenditures on the transfer of knowledge to improve the effectiveness and efficiency in the production of a good, the implementation of a process or the provision of a service Porvided to national workers National goods and labor used in services Payroll of National workers Accumulated value of transformation made in Mexico along the whole supply chain Goods Labor Services Training Technology transfer Infrastructure 4 Methodology for calculating local content

Verifying local content Ministry of Economics (Own resources) Support from third parties Verify compliance of requirements in each contract. In case of default, the National Hydrocarbons Commission will be notified and the sanction established in the contract will be applied. Hybrid scheme 5

Supplier Development Implement a supplier development program supported by: Public Trust to improve National Suppliers and Contractors´ capacity Promote the development and competitiveness of local and national suppliers and contractors, through financing schemes and support programs for training, research and certification, in order to close the gaps in technical capacity and quality, with attention to small and medium enterprises Showcase national companies interested in participating in the industry and identify their development needs Supplier Registry 6

Advisory Board Advisory Board for the Electricity Industry Advisory Board for the Hydrocarbon Industry Members of the Board -Ministry of Economics -Ministry of Energy -National Hydrocarbons Commission -Energy Regulatory Commission -Ministry of Economics -Ministry of Energy -Energy Regulatory Commission CCE, CANACINTRA, CONCAMIN, COPARMEX, CONCANACO-SERVYTUR UNAM, SISTEMA ITESM, UVM 7 Permanent Guests PEMEX CFE