Report on Reseves Data by DeGolyer and MacNaughton



 Exhibit 10.6 
 DEGOLYER AND MACNAUGHTON 
 5001 SPRING VALLEY ROAD 

SUITE 800 EAST 
 DALLAS, TEXAS 75244 
 This is a digital
representation of a DeGolyer and MacNaughton report. 
 This file is intended to be a manifestation of certain data in the subject report and as
such are subject to the same conditions thereof. The information and data contained in this file may be subject to misinterpretation; therefore, the signed and bound copy of this report should be considered the only authoritative source of such
information. 
 



 







 DEGOLYER AND
MACNAUGHTON 
 5001 SPRING VALLEY ROAD 

SUITE 800 EAST 
 DALLAS, TEXAS 75244 
 February 11, 2011

 Pemex Exploración y Producción 
 Avenida Marina Naciónal 
 Torre Ejecutiva 

Colonia Petróleos Mexicanos 
 C.P. 11311
Mexico, D.F. 
 Gentlemen: 
 Pursuant to your request, we have conducted a reserves audit of the net proved crude oil, condensate, natural gas liquids (NGL), and sales-gas reserves, as of January 1, 2011, of certain properties
owned by Pemex Exploración y Producción (PEP) in the Región Marina Suroeste of Mexico. This evaluation was completed on February 11, 2011. PEP has represented that these properties account for 15.1 percent on a net total
liquids equivalent barrel basis of PEP’s net proved reserves as of January 1, 2011, and that the net proved reserves estimates have been prepared in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of
Regulation S–X of the Securities and Exchange Commission (SEC) of the United States. We have reviewed information provided to us by PEP that it represents to be PEP’s estimates of the net reserves, as of January 1, 2011, for the same
properties as those which we evaluated. 
 Reserves included herein are expressed as net reserves as represented by PEP. Gross
reserves are defined as the total estimated petroleum to be produced from these properties after December 31, 2010. Net reserves are defined as that portion of the gross reserves attributable to the interests owned by PEP after deducting all
interests owned by others. 
 Estimates of oil, condensate, NGL, and sales gas should be regarded only as estimates that may
change as further production history and additional information become available. Not only are such reserves estimates based on that information 








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which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information. 

Data used in this audit were obtained from reviews with PEP personnel, PEP files, from records on file with the appropriate regulatory
agencies, and from public sources. In the preparation of this report we have relied, without independent verification, upon such information furnished by PEP with respect to property interests, production from such properties, current costs of
operation and development, current prices for production, agreements relating to current and future operations and sale of production, and various other information and data that were accepted as represented. A field examination of the properties
was not considered necessary for the purposes of this report. 
 Methodology and Procedures 

Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principals and techniques
that are in accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves
Information (Revision as of February 19, 2007).” The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data,
and production history. 
 When applicable, the volumetric method was used to estimate the original oil in place (OOIP) and the
original gas in place (OGIP). Structure and isopach maps were constructed to estimate reservoir volume. Electrical logs, radioactivity logs, core analyses, and other available data were used to prepare these maps as well as to estimate
representative values for porosity and water saturation. When adequate data were available and when circumstances justified, material balance and other engineering methods were used to estimate OOIP or OGIP. 

Estimates of ultimate recovery were obtained after applying recovery factors to OOIP or OGIP. These recovery factors were based on
consideration of the type of energy inherent in the reservoirs, analyses of the petroleum, the structural positions of the properties, and the production histories. When applicable, material balance and other engineering methods were used to
estimate recovery factors. An analysis 








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 DEGOLYER AND MACNAUGHTON 
  

 
of reservoir performance, including production rate, reservoir pressure, and gas-oil ratio behavior, was used in the estimation of reserves. 

For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic
characteristics, reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves, reserves were estimated only to the limits of economic production or to the
limit of the production licenses as appropriate. 
 Definition of Reserves 

Petroleum reserves estimated by PEP included in this report are classified as proved. Only proved reserves have been evaluated for this
report. Reserves classifications used by PEP in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC. Reserves are judged to be economically producible in future years
from known reservoirs under existing economic and operating conditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were
estimated only to the limit of economic rates of production under existing economic and operating conditions using prices and costs consistent with the effective date of this report, including consideration of changes in existing prices provided
only by contractual arrangements but not including escalations based upon future conditions. The petroleum reserves are classified as follows: 
 Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty
to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate
expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be
reasonably certain that it will commence the project within a reasonable time. 








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 DEGOLYER AND MACNAUGHTON 
  

 (i) The area of the reservoir considered as proved includes: (A) The area
identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the
basis of available geoscience and engineering data. 
 (ii) In the absence of data on fluid contacts, proved quantities in a
reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty. 

(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an
associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.

 (iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not
limited to, fluid injection) are included in the proved classification when: 
 (A) Successful testing by a pilot project in an
area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable
certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved for development by all necessary parties and entities, including governmental entities. 

(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price
shall be the average price during the 12-month period prior to the ending date of the period covered 








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 DEGOLYER AND MACNAUGHTON 
  

 
by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements,
excluding escalations based upon future conditions. 
 Developed oil and gas reserves – Developed oil and gas
reserves are reserves of any category that can be expected to be recovered: 
 (i) Through existing wells with existing equipment
and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and 

(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by
means not involving a well. 
 Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of
any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. 
 (i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology
exists that establishes reasonable certainty of economic producibility at greater distances. 
 (ii) Undrilled locations can be
classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time. 

(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid
injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in section 210.4–10 (a)









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Definitions, or by other evidence using reliable technology establishing reasonable certainty. 
 Primary Economic Assumptions 
 The following economic assumptions
were used for estimating existing and future prices and costs: 
 Oil and Condensate Prices 

PEP has represented that the oil and condensate prices were calculated as the unweighted arithmetic average of the first-day-of-the-month
price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. The volume-weighted average oil price attributable to estimated proved reserves was $77.35 per barrel.
The volume-weighted average condensate price attributable to estimated proved reserves was $45.19 per barrel. 
 Natural Gas
Prices 
 PEP has represented that the plant-inlet natural gas prices were calculated as the unweighted arithmetic average of
the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. The volume-weighted average price attributable to estimated proved reserves
was $5.62 per Mcf. 
 Operating Expenses and Capital Costs 

Operating expenses and capital costs, based on information provided by PEP, were used in estimating future costs required to operate the
properties. In certain cases, future costs, either higher or lower than existing costs, may have been used because of anticipated changes in operating conditions. These costs were not escalated for inflation. 








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 DEGOLYER AND MACNAUGHTON 
  

 While the oil and gas industry may be subject to regulatory changes from time to time
that could affect an industry participant’s ability to recover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the January 1, 2011, estimated oil and gas volumes. The
reserves estimated in this report can be produced under current regulatory guidelines. 
 PEP has represented that its estimated
net proved reserves attributable to the reviewed properties are based on the definitions of proved reserves of the SEC. PEP represents that its estimates of the net proved reserves attributable to these properties which represent 15.1 percent of
PEP’s reserves on a total liquids equivalent barrel basis are as follows, expressed in thousands of barrels (Mbbl) and, millions of cubic feet (MMcf): 
  

																	
	 	  	Estimated by PEP
Net Proved
Reserves
as of
January 1, 2011	 
	 	  	Oil
and
Condensate
(Mbbl)	 	  	NGL
(Mbbl)	 	  	Sales
Gas
(MMcf)	 	  	Total 
Liquids
Equivalent*
(Mbbl)	 
	 Properties reviewed by DeGolyer and MacNaughton
	  				  				  				  			
	 Mexico
	  				  				  				  			
	 Proved Developed
	  	 	614,745	  	  	 	90,678	  	  	 	881,721	  	  	 	874,955	  
	 Proved Undeveloped
	  	 	663,258	  	  	 	160,817	  	  	 	1,962,193	  	  	 	1,201,352	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Total Proved
	  	 	1,278,003	  	  	 	251,495	  	  	 	2,843,914	  	  	 	2,076,307	  

  

	*	Total liquids equivalent volumes are based on heating values that vary for each field. 


In our opinion, the information relating to estimated proved reserves of oil, condensate, natural gas liquids, and gas contained in this
report has been prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation
and Disclosures (January 2010) of the Financial Accounting Standards Board and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the
Securities and Exchange Commission. 
 To the extent the above-enumerated rules, regulations, and statements require
determinations of an accounting or legal nature, we, as engineers, are 








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necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefore. 

In comparing the detailed net proved reserves estimates prepared by us and by PEP, we have found difference, both positive and negative
resulting in an aggregate difference of 5 percent when compared on the basis of net total liquids equivalent barrels. It is our opinion that the net proved reserves estimates prepared by PEP on the properties reviewed by us and referred to above,
when compared on the basis of net total liquids equivalent barrels, in aggregate, do not differ materially from those prepared by us and are considered reasonable. 
 DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world for over 70 years. DeGolyer and MacNaughton does
not have any financial interest, including stock ownership, in PEP. Our fees were not contigent on the results of our evaluation. This letter report has been prepared at the request of PEP. DeGolyer and MacNaughton has used all assumptions, data,
procedures, and methods that it considers necessary and appropriate to prepare this report. 
  

			
		  	Submitted,
		
		  	/s/ DeGolyer and MacNaughton
		  	DeGOLYER and MacNAUGHTON
		  	Texas Registered Engineering Firm F-716


			
		
	 




	  	 /s/ R.M. Shuck, P.E.
 R.M. Shuck, P.E.
 Senior Vice President
 DeGolyer and MacNaughton

	  
	  









 DEGOLYER AND MACNAUGHTON

  

 CERTIFICATE of QUALIFICATION 

I, R.M. Shuck, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

  

	 	1.	That I am Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to PEP dated February 11, 2011, and that I, as
Senior Vice President, was responsible for the preparation of this report. 

  

	 	2.	That I attended the University of Houston, and that I graduated with a Bachelor of Science degree in Chemical Engineering in the year 1977; that I am a Registered
Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers and the American Association of Petroleum Geologists; and that I have in excess of 33 years of experience in oil and gas
reservoir studies and reserves evaluations. 

  

			
	



	  	 /s/ R. M. Shuck, P.E.
 R. M. Shuck, P.E.
 Senior Vice President
 DeGolyer and MacNaughton