Chinese Oilfield Leader Aims at Mexico for Strategic ExpansionWed, 01/21/2015 - 16:49
Q: What are the ambitions of Yantai Jereh Oilfield Services (Jereh) in the Mexican oil and gas industry?
A: Jereh is a world-leading oil and gas equipment manufacturer and service supplier with integrated solutions for drilling, well services, oil and gas treatment, processing, and oilfield engineering. Over our 15 years of development, our equipment and services have been successfully deployed in over 60 countries, onshore and offshore. In 2010, Jereh was listed on the Shenzhen stock exchange and has now become China’s largest privatelyheld, listed oil and gas company. For the Mexican market, Jereh is dedicated to helping its customers and partners in onshore and offshore fields by supplying equipment and providing oil and gas engineering and construction services. Jereh aims to make the development of Mexico’s oil and gas sector safer, more reliable, and eco-friendly.
Q: What significant opportunities convinced the company to commercialize your product portfolio here?
A: Mexico is one of the largest oil producers in the world. According to the World Bank’s rankings, Mexico is 39th in terms of ease of doing business, and has risen from 43rd in 2014, which shows that the government is seeking to create a good environment for foreign companies to invest. Given the recent Energy Reform, Jereh will seize this opportunity to fully enter this promising market. We feel confident that we can quickly cement our positioning by bringing our advanced technology, high-quality products, and skilled people here. At this moment, our equipment manufacturing sector has the largest presence in Mexico. In the near future, we hope to start offering our oil and gas EPC services, and we may then introduce our oilfield technology services, especially concerning environmental management. In March 2015, Jereh launched its integrated oilfield environmental solution in Mexico. It offers great environmental and economic benefits for customers through oil-based cutting management, cutting reinjection, and automated tank cleaning. Finally, we have sold two platforms to PEMEX for offshore projects. By enhancing our partnerships with the clients we supply oil and gas equipment to, we will be ready to help them in more challenging projects, including EPC services, subsea oil and gas efforts, and more.
Q: The global oil and gas market is more used to US and European companies. What are the main challenges that Jereh faces in introducing Chinese technology to Mexico?
A: The main challenge we may face is that local companies are not familiar with Jereh, or China-based companies in general. However, Chinese companies have been keeping up with global technological developments in the oilfield equipment manufacturing sector. In 2008, Jereh established American Jereh in Houston as an R&D center and manufacturing industrial park to support the North and Latin American markets. We believe that, backed by our edge-leading technology and global application experience in over 60 countries, Jereh can offer outstanding cost-efficient solutions to our customers.
Q: What makes Jereh’s value proposition better than the alternatives available in the market?
A: Firstly, the quality of our products and services is outstanding. There are definitely some high-quality companies out there, but we are confident we can match the quality of their equipment and the efficiency of their services. Secondly, we see our corporate culture as a key factor that distinguishes Jereh from its competitors. We focus on customer needs, value the dedication of our employees, and continuously strive to be the best.
Q: How are you leveraging your relationships with clients in other parts of the world to participate as soon as they enter Mexico?
A: Jereh is a globalized company. For example, one of our clients in Nigeria often exports Jereh equipment to work in other parts of the world, and the same situation applies for Mexico. In 2004, Jereh delivered its first cementing skid to Mexico through an American customer, marking our entry into the country. We have more than 5,000 employees working globally and will focus on the Mexican market to try and replicate our success here. Mexico is playing an important role in Jereh’s global portfolio due to its proximity to the US. Backed by American Jereh in Houston, we are able to manufacture equipment in the US and quickly deliver it to Mexico. Jereh has now set up its Mexico branch as it seeks to cement long-term development here and is committed to working together with its customers.