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Insight

Breeding Ground for Multiple Service Providers

Wed, 01/25/2012 - 13:45

“The company is doing well and taking advantage of Pemex’s projects to maintain and increase production, so we have work to do,” says Javier Camargo Salinas, Director General of Grupo Evya. Since 1996 Grupo Evya has developed oil infrastructure projects across a wide range of areas of expertise including civil works, mechanical and electrical engineering, instrumentation, industrial security, telecommunications, and predictive maintenance, through more than 300 contracts with Pemex.

The group continues to expand its work for the offshore industry, diversifying to cover not only platform construction, gas processing facilities, monobuoys, aluminium gates and gangways, but also the engineering, procurement, and construction of offshore drilling platforms for Pemex at the company’s yard in Tabasco’s Dos Bocas port. This project is handled in collaboration with Houston-based company Upstream Engineering, which is in charge of the engineering side of the project.

Forward looking companies in the oil and gas industry believed in the port of Dos Bocas before the port’s current infrastructure had been completed. Mexican construction and engineering firm Grupo Evya obtained 14 hectares at the site, even before the area had been dredged to create a dockside. This strategy worked: today, Grupo Evya employs more than 600 workers at Dos Bocas, but plans to increase this number by at least 1,000 over the next two years.

The collaboration with Upstream Engineering has enabled Grupo Evya to compete for platform construction and maintenance contracts, as Pemex demands in its tenders that competing companies must have experience building platform rigs. “Thanks to our five-year alliance with Upstream, we succeeded in getting a rig assigned from Pemex under these terms,” says Camargo Salinas.

Regarding strategy for future rig-building work in the Mexican market, Camargo Salinas states that instead of following the model of some rig-building companies that will begin rig construction before finding a buyer such as Swecomex, Evya is loath to build a rig without a firm contract. Camargo Salinas’ reasoning is that financing projects with firm contracts is much easier, and there is no incentive to build a rig simply to keep project engineers and contracted construction personnel, because of the group’s diverse project portfolio.

Camargo Salinas believes that the relationship between domestic Mexican oil and gas businesses and international partners is reciprocal; a local company like Grupo Evya has much to offer to international companies in terms of helping to position themselves in the complex Mexican market. “We have a lot of experience in the oil industry in Mexico. We started operations a year before drilling began at Cantarell, so we are very aware of what is happening in the oil market. We know that it is not an easy market; currently it is extremely complicated for international companies to understand, particularly when navigating areas that are usually simple in other countries, such as presenting an offer or making an estimate on a project. Grupo Evya also has an advantage due to our main locations in Campeche and Tabasco, where the main developments in the Mexican offshore industry continue to take place. But the important thing is to have a Mexican administration with knowledge of all the changes that have been occurring in Pemex, because the only constant at Pemex is change. So we are really at the forefront of all these changes and we think there is no way for us to fail in a partnership with a company that is interested in working for Pemex.”