‘Great Expectations’ Push Focus on AlliancesWed, 01/18/2017 - 15:15
Q: What are WorleyParsons’ expectations in Mexico?
A: We believe the Mexican market is going to grow and we are positioning ourselves to take advantage of that growth. We have great expectations for the IOCs and NOCs that will enter Mexico as the Energy Reform allows for greater competition. That is also reflected in our focus, which has slowly shifted from only working with PEMEX to now pushing for alliances with independent players. Most of our work during the last few years has been in consulting, mainly in front-end development.
Q: How has WorleyParsons participated in the refining sector?
A: A large part of WorleyParsons’ business focuses on refining, mostly in the US. We see plenty of potential to transport that experience to Mexico, mainly because of the industry’s need for modification, maintenance and expansion. The refining market, for example, understands that plants need to be renovated but it is not certain where the capital for that work is going to come from. We are in standby mode until the market decides to start working fully in that area.
Private companies will not be investing much capital in new facilities, especially given current market conditions. Most probably they will partner with PEMEX on revamping its facilities but that also involves a major challenge, particularly the decision on who will control and operate those facilities. Working with PEMEX can be tricky for companies but fortunately we have seen a positive collaborative environment emerge in offshore with the farm-outs. The same will have to happen with PEMEX’s other action areas, from onshore to refining.
WorleyParsons also has a long history in engineering, working on the integration of different equipment. It is an advantage for us to be technologically neutral, we neither sell nor fabricate any equipment, allowing us to also be neutral in our advice to customers. This does not mean we do not innovate. We have worked with equipment manufacturers to develop special technologies that have been implemented in some of our projects but such implementation depends solely on the project’s requirements.
In refining we are especially strong because of the 171 capabilities we have developed working on large-scale
projects, mainly thanks to our mining division. We bring that capability to the refining world. WorleyParsons has a center of excellence for refining located in California, where we have done a lot of work for some major companies such as Chevron, with whom we have worked in an engineering capacity and on technology development.
Q: What is WorleyParsons’ involvement in deepwater?
A: Deepwater is definitely a big priority for us, mainly because we have Intecsea as a key differentiator in that segment, making us one of the leading if not the leading company in the world. Through Intecsea, WorleyParsons has developed some of the most important deepwater projects in the world, such as a 260km tie-back to shore project developed in the South China Sea.
In terms of technology development, we worked on the creation of a cutting-edge FPSO that allows companies to cut their capital expenditures in half in certain cases. This development came about because of market demand as companies are looking for ways to reduce project CAPEX.
Our experience in deepwater is not only with technology but also in management. We have worked with most major and independent oil and gas companies in the world and we are fully committed to knocking on every door and establishing personal contact. The fact that many of these companies are located in Houston makes this process easier, as well as our experience working in the Gulf of Mexico.