Germany Casts an Investment Eye at Mexico

Q: How have German companies responded to the opening of the Mexican oil and gas market?

A: Since the beginning of the Energy Reform, German companies are increasingly interested in entering the Mexican market. This can be carried out by participating in public licensing rounds or by positioning their technology and products along the supply chain. The Energy Reform has been the key factor for the development of the market and evolving business opportunities in Mexico. The progress can be identified through the increasing numbers of projects and events related to the oil and gas sector carried out by CAMEXA and the higher participation of German firms in the Mexican Oil and Gas Congress (CMP).

Q: How are you preparing to help German technology and service companies seize the resulting opportunities?

A: To foster and promote German technology and presence within the sector we organize business delegations and German pavillions within the framework of the CMP. CAMEXA also forms part of the Global Cluster for Oil and Gas, which is an initiative realized by the German Chambers of Canada, the US, Brazil, Norway, Russia and Saudi Arabia, among others. The cluster’s goal is to promote and help German oil and gas firms reach out to lesser known international markets and identify the potential of new projects in these markets.

Q: What are the main German technology trends in the sector and how do those apply to the Mexican market?

A: Regarding the German firms we have already worked with, we can pinpoint their objective of introducing their technology to the Mexican value chain. To facilitate this process, the German government has established a variety of support initiatives to aid small and medium- sized companies in diversifying their profile and placing themselves in international markets, such as the export initiative by the German Federal Ministry of Economy and Energy. German players tend to work in close collaboration,  using specialized multiplicators in every industry line, like the Mechanical Engineering Industry Association (VDMA), the Business Association of Latin America (LAV) and the Bavarian Cluster of Chemistry.

Q: What is CAMEXA’s perspective of the industry’s certifications and requirements?

A: The Mexican government strictly observes and regulates the requirements, which are constantly being reviewed. These requirements apply to international and national companies. The Mexican government has high expectations for the new technologies, services and products brought by foreign companies to Mexico. The requirements that must be met by companies that are planning to enter the process of prequalification to participate in the public licensing rounds are ambitious, especially in upstream.

These are challenging times for the oil and gas sector. Besides the lack of investment in modernization of plants and machinery, which important players within the Mexican sector are yet to implement, the ongoing change should be considered as a positive step with the expected requirements serving as an instrument to guarantee and screen improvements.

Q: What role will the German industry play in developing Mexico’s oil and gas sector?

A: At this moment, the German industry in Mexico finds itself evaluating evolving potentials due to future licitations and the ongoing diversification of the petroleum sector. However, there are some German products here already and some machinery suppliers have been operating for years within the country’s oil and gas industry.