MODIFICATIONS AND ADDITONS TO DIVERSE ARTICLES OF THE ADMINISTRATIVE DISPOSITIONS SETTING FORTH THE GUIDELINES FOR THE ESTABLISHEMENT, IMPLEMENTATION AND APPROVAL OF THE SASISOPA

MODIFICATIONS AND ADDITONS TO DIVERSE ARTICLES OF THE ADMINISTRATIVE DISPOSITIONS SETTING FORTH THE GUIDELINES FOR THE ESTABLISHEMENT, IMPLEMENTATION AND APPROVAL OF THE SASISOPA

Last 4 July 2018, the modifications and additions to the “Accordance by means of which diverse articles of the general administrative dispositions setting forth the guidelines for the establishment, implementation and authorization of the Industrial Safety, Operational Safety and Environmental Protection Administration Systems are set forth” (“the Agreement”) were published in the Federal Official Gazette (“DOF”). The Agreement entered into force on the 5th of the same month and year.

The approved modifications and reforms make the following specifications, for what refers to the requirements that must be met to obtain the authorization of the Industrial Safety, Operational Safety and Environmental Protection Administration System (“SASISOPA Authorization”):

1. For obtaining the SASISOPA Authorization for superficial reconnaissance and exploration, as well as for hydrocarbon exploration and extraction, the corresponding Assignment Title or Contract shall be submitted, in addition the all other requirements foreseen in article 17 of the guidelines.

2. For all other activities within the hydrocarbon sector – described in article 2, sections II to VI of the Administrative Dispositions – in addition to all other requirements foreseen in article 17 of the guidelines, the following shall be submitted:

• Copy of the permit granted by the Ministry of Energy or by the Energy Regulatory Commission, accordingly; or

• Original or certified copy of the Dictamination issued by a Verification Unit or Third Party, authorized by the National Agency of Safety, Energy and Environment (“ASEA”) by means of which the design of the project and its compliance with the Mexican Official Standards and/or applicable general administrative dispositions is demonstrated and verification of the basic extended engineering of the project is provided; or

• References or set of regulations, accompanied by a qualified opinion by an individual or legal entity with either national or international recognition that can certify that said set of regulations is in accordance with the bet international practices in matters of Industrial and Operational Safety, as well as provide verification of the basic extended engineering of the project with the purpose of being able to indicate that the installation and equipment design is in accordance to the set of regulations presented. Both evaluations may be carried out by one sole person or by two different ones.

All those applications submitted before ASEA for evaluation at the time the Agreement entered into force will be solved observing the dispositions set forth in the latter.

Sincerely,

 Mexico City July 19th 2018