STORY INLINE POST
Q: In what areas do you think TSC Manufacturing and Supply (TSC) stands to benefit the most from the Energy Reform, shallow water, deepwater, or onshore drilling solutions?
A: The opportunities that we will seek to capitalize on will be based on the stream of new players coming into Mexico. A lot of attention is being paid to the foreign operators that have expressed their interest, but they are not alone. They will soon be followed by drilling contractors as well. That is where good business opportunities lie. Across shallow water, deepwater, or onshore, drilling contractors will require brand new equipment or will need their existing equipment to be refurbished and maintained. TSC is ready to offer both of these options. Beyond that, TSC has proven that it can provide efficient and cost-effective solution capabilities both offshore and onshore. We particularly expect that our PDQ land drilling rig, as well as our high-profile pumps, will be looked upon by the Mexican market as an excellent alternative.
Our reputation in Mexico was boosted in July 2014, when a consortium led by TSC was awarded a US$63 million contract by PEMEX in order to carry out refurbishment works, mechanizations, and automation on several 2000HP land rigs. Having led the consortium to this success, TSC will work with its allies, Andrews Technologies and Construcciones Industriales y Ecológicas del Sureste, to complete these repairs and upgrades to the rigs within two and a half years. This marks a significant step for TSC in Mexico and shows its ability to win major contracts. It will also help the company to carry out improvements to its facilities and to increase its manpower for its regional bases in North and Central America.
Q: How many of Mexico’s rigs of all types and semisubmersibles are already equipped with TSC equipment?
A: TSC has only been in Mexico for two years so, for the moment, only a small percentage of rigs are equipped with some of our equipment and solutions. However, we remain very active in promoting our products to be included in the construction of new offshore rigs and land rigs alike. It is evident that, as a wider range of TSC equipment becomes available in the Mexican market, our opportunities will grow. In order for this to happen, it is all the more vital for us to invest in developing the right service capabilities and personnel. These dimensions will mean we can provide customers with quick responses and solutions when they require servicing. Naturally, our competitors are also looking keenly at Mexico. This means that the Mexican market is going to become very competitive for the supply of drilling equipment, services, and turnkey rig solutions. The way for TSC to counter is to focus on the quality of its value proposition, which truly separates us from the competition. We are a total solution provider and part of that is continuing to add to our product offering. Handling tools and BOPs are just some of the products we have recently added to our portfolio in Mexico.
Q: How has TSC handled the slew of obstacles in the way of the Mexican drilling market?
A: The situation naturally affected us, as it has the entire market, and we have had to somewhat readjust our sales budget for 2015. However, we continue to stay focused on growing our market share in Mexico. Naturally, the decision not to contract more drilling platforms for exploration activities impacted TSC’s business strategy and development outlook. These were not separate factors as the budget cut within PEMEX came about as a result of the downturn in the market and the fall in oil prices. We are well aware that the situation will turn around and we will be prepared for it when it does.
Q: In which ways do TSC’s newer Mexican operations benefit from its existing international operations?
A: While this is only our second year of operation in Mexico, we have been hard at work to ensure that more and more customers are becoming familiar with TSC and what we can offer them. Our entry into the Mexican market was a strategy to bring huge rewards to TSC in a short time. The investments and development we are making here are part of a long-term strategy that enables us to be ahead of our customers’ needs in Mexico. Our 4-D approach is at the core of our values. We proactively work to understand customers’ comprehensive needs. We are service driven and provide high-quality services that exceed customer expectations. We deliver effective solutions that solve customers’ problems and add value. We are result driven as we fulfill our promises and take full responsibility for our actions.