Flexibility, Diversification Help Weather PEMEX StormWed, 01/18/2017 - 23:53
Q: What has been Tiger Engineering’s main area of expertise since entering the Mexican market?
DZ: Tiger Engineering in Mexico is part of Summum Projects, the engineering services division for the energy sector of the SUMMUM Group, which also consists of Summum Energy, focused on oil and gas services and Gómez Cajiao y Asociados, focused on engineering services for infrastructure. With this support, Tiger Engineering can be flexible, which is an added value for our customers.
Tiger Engineering works primarily in the upstream and downstream segments, with most of our projects in offshore, refining and cogeneration. We also have expertise in segments such as onshore and storage. This diversification has allowed us to remain in the market even through hard times.
RD: Tiger Engineering started operations in Mexico in March 2011. Since then we have worked over 2 million man hours in offshore, mostly in Campeche. Just after starting operations, Tiger Engineering won a contract with PEMEX, securing 470,000 man hours and a US$19.2 million investment for the period 2012-2016. We also participated in the development of the Ayatsil-Tekel field, where we engineered the ducts, communications and electric interconnections. Our experience during these and other projects secured our involvement in the Campeche project, which involved the modernization, expansion and maintenance of 700 structures involving 963,000 man hours and an investment of US$28.9 million. In offshore Tiger Engineering has more experience, especially in E&P.
Q: How has the Energy Reform and PEMEX’s restructuring impacted the company’s activities?
RD: Budget constraints forced PEMEX to end some contracts. Tiger Engineering was extremely lucky to enter the market and win solid contracts before the crisis hit the industry. The company decided early enough to diversify its projects and services by working with the private sector and providing Project Management Consultant (PMC) services. We have already started working as a PMC provider on projects such as the naphtha reforming plant at the Burgos industrial complex in Reynosa, Tamaulipas. Fortunately, our PMC services fit with PEMEX’s new model of not working on projects that do not align with its core activities.
DZ: Mexico imports over 40 percent of its refining derivatives, which does not match the installed capacity, showing that there is opportunity to increase the conversion ratios in PEMEX’s plants. PEMEX has already understood the importance of seizing this opportunity and, after stating that it will only focus on its core business, has reached out to companies to take care of revamping PEMEX’s refineries. New players may have strong technical capabilities in greenfield areas when it comes to renovations it is extremely important to have specific national and sectorial know-how, which is among Tiger Engineering’s strengths due to a local workforce that has experience in those very same locations.
Q: What are Tiger Engineering’s expectations for the coming years?
RD: In Mexico we want to focus on the areas where we have plenty of experience and knowledge, which are offshore, refining and combined cycle plants. We can see the highest market growth in the oil and gas industry and are expecting to work on projects in the US that are specifically focused on meeting Mexican demand, using Mexican investments. There is also strong potential for growth in the combined cycle segment as Mexico considers cogeneration with natural gas as a clean energy that will help it reach its clean power targets.
DZ: Besides maintaining our status as a successful engineering company, our objective is to become a successful PMC in Mexico. The PMC area is not completely new for Tiger Engineering. As an example we can point to the US$4 billion refining project in Peru where SUMMUM Group is participating as a PMC.