Innovative Technologies on the Horizon

Q: What have been the successes and challenges of COSL in the last 12 months in Mexico?

A: One of the greatest successes of our company has been to keep up the utilization of our drilling units, despite the terrible downturn of the oil and gas industry that has been affecting us for the last four to five years. The market is recovering slowly but steadily and we expect to see a more generous market in the years to come. We need to stay focused and learn from the past. We need to improve cost control and our performance to stand out from the competition that has also learned a lesson or two during these difficult times. I would like to think that we are more resilient now than we were when we started this venture in 2006. We have projects going on with our drilling units and our well service lines, and the national market has expanded. We are confident that COSL will continue expand its client portfolio. We have found it somewhat difficult to enter the market due to the usual suppliers that have operated in Mexico for many years. However, once clients get to know our performance and service, trust increases and the client portfolio grows.

Q: Which projects is COSL working on and who are the clients?

A: We continue operating for our main client PEMEX through contracts signed a few years ago and through contract extensions. We have been fortunate to have operated in the past for some of the IOCs, such as Petrofac, Panamerican through its subsidiary Hokchi Energy and Fieldwood Energy. We remain interested in new projects with other IOCs to replicate our previous success, providing safe, reliable and cost-effective services. Additionally, we have managed to start well service operations with our cementing and wireline logging lines.

Q: How would you characterize the suitability and adaptability of COSL’s offshore services to the demands of the Mexican market in its current stage of development?

A: COSL has a slogan: always do better. I truly believe that this slogan reflects COSL Mexico’s culture in general. We are always trying to find ways to improve our performance and we can demonstrate it very clearly. Our company has worked for PEMEX since 2006, and we continue to adapt to PEMEX’s new requirements as the NOC adapts itself to new market conditions and new country necessities. We have adapted also to the new IOCs in terms of techniques, personnel, technical requirements, additional services, additional certifications and, in general, a new interpersonal relationship. Our COSL team includes personnel with international experience who have made it easy to transition from a one-client environment to a multiclient environment.

Q: What innovative technologies is COSL bringing to its operations in Mexico?

A: COSL owns and operates a large fleet of drilling units, platform rigs, jackups and semisubmersibles. We have plans to bring the latest generation jackups and semisubmersibles to the Mexican market. Those drilling units are equipped with the latest technology in terms of automated equipment that protects our workers from injuries, along with new and proven drilling equipment. Our chemicals division has a state-of-the-art laboratory that rivals any chemical lab in Mexico, with new technologies such as expandable gas-tight slurries, gas control testing equipment in our lab, which is a full API-compliant laboratory. Our wireline division includes technology that rivals other similar companies. Our production optimization division has new products that can also benefit the Mexican market, such as rust inhibitors and scale removers. Now more than ever PEMEX and the other IOCs need companies that are reliable, experienced and with a safe and strong performance track record. There are several companies in Mexico that deserve to be considered relevant. I believe COSL is one of them. We have enlarged the array of services that we can provide in Mexico and we believe that we stand out from our competition.

China Oilfield Services Limited (COSL) is a Chinese subsidiary of the state-owned CNOOC company. COSL has provided oilfield services to companies in the major oil-producing areas of the world since its founding in 2001