Integrated Approach to Drilling Improves Efficiency

Q: How advanced is Schlumberger in transitioning from a service provider to a company that offers solutions such as increased production, higher recovery rates, and lower cost per barrel?

A: Through our Schlumberger Production Management business, we partner with operators to develop a field, with the investment provided by our company and payment is returned through a dollar per barrel quota. We have applied this model across Latin America and in other continents, and the system has proven extremely successful both for us and for the operators. As a result, I believe we are inherently programmed at Schlumberger to try to constantly change the way in which the field operates and place ourselves in a position to create extra value. One thing that has remained steadfast between our beginnings in 1927 and now is our approach toward technology, and this is the case regardless of whether it is single segment, integrated solutions, or Schlumberger Production Management. We have witnessed increased efforts by our competitors to follow our footsteps, but we have always remained ahead of the pack due to our drive to change the environment combined with the company’s emphasis on technology and human resources.

Q: How will the integration of Cameron into the Schlumberger family impact the value proposition you can offer in the Mexican market?

A: The Cameron acquisition is one example of the fact that we are trying to modify the playing field once more. This is one of the most eagerly anticipated acquisitions we have planned, and although it is still awaiting approval by certain regulatory boards, we are interested in creating a wave in the industry in terms of offerings and integrated services. Schlumberger has been well-known as a solutions provider with a comprehensive portfolio, catering from sub-surface to drilling, but now it will be possible to provide services for surface facilities. No other competitor can match this strategy. PEMEX has always been at the forefront of the industry in terms of integration, so we are trying to bring a unique model that will benefit the NOC by offering it the opportunity to maintain current operations and integrate well construction with surface facilities. Mexico is one of the countries with the most potential for value-added services, not only for PEMEX, but also for any new players entering the market. 

Q: What implemented measures have allowed Schlumberger to become more efficient in Mexico, and pass the resulting cost savings to your clients?

A: We have implemented several mechanisms, such as our internal KPIs we use to measure efficiency within the company. Our Center for Liability and Efficiency in Veracruz is a state-of-the-art engineering center that supports our operations. We established this center in 2011, and to date we have managed to improve maintenance turnaround times more than fivefold. This generates savings that allow us to be much more competitive and some of these savings have been translated to PEMEX. We then have external KPIs that gauge the efficiency in terms of PEMEX and other customers and this can be witnessed through our drilling performance here in Mexico, which is between 30-40% more efficient than that of our competitors. Any saving PEMEX can make in the current operating environment can be vital to its operations.

Q: In the current environment, what are the most successful technologies and international best practices you are planning to introduce in Mexico?

A: Nowadays, in an environment of low budgets, the customer is constantly seeking new technology and processes that can improve drilling performance and efficiency. Improving our drilling performance has been a process of continuous evolution, and several factors have contributed to our ability to cut costs, such as the release of new technologies like the PowerDrive® and GeoSphere® systems that help optimize and target drilling. We have also opted for a more integrated approach, and are able to capitalize on several synergies we have created internally across our business areas. In the short term, we are much more focused on improving efficiency. The second challenge for newcomers to the market lies in understanding the potential of the reservoir, and much of our characterization technology will play an important role for these new players. In this way, we have by far the leading technology in the industry, as well as a substantial portfolio to cater to each phase