International Expertise with a Local Touch

Q: How does Saipem fit into the landscape for Mexico’s offshore development?

A: The country has great potential as its oil and gas reserves extend from the US border to the Yucatan Peninsula, a significant area in terms of extension. The Mexican Energy Reform allowed international operators to enter and it certainly brought big opportunities to the market. Now the country will begin to see the first results from the development of these fields and production will follow suit.

Our company supports these developments with our services in engineering, design, procurement, transportation and installing production facilities and related infrastructure. Safeguarding energy production is a matter of national security for any country and Mexico is no different, particularly since it imports a significant percentage of energy-related products to satisfy Mexican internal demand/consumption. The development of Mexico’s hydrocarbon reserves will foster an estimated 500,000 new job opportunities that will be created in the country.

Q: What value does Saipem provide to the market and how do you benefit from your relationship with ENI?

A: Saipem has around 200 employees in its office based in Mexico and 98 percent of them are Mexican. After an initial exploration phase, the operating companies are involving contractors like Saipem to present proposals to perform the relevant EPCI works. 

ENI is an operating company that has a share in Saipem, although it is distinct from Saipem, essentially doing different kinds of activities. We have and we will continue to provide support to ENI worldwide, with Saipem participating in international tenders called by ENI just like any other general service contractor. Having over 40 years of cooperation with ENI means that Saipem has extensive knowledge of ENI’s needs and expectations when developing a project. 

We have noticed great interest from international companies in Mexico’s various licensing rounds, which adds up to more opportunities that will be created in the country. Saipem will go on monitoring the progress of the licensing-round winners to continue to offer our services for their field developments.

Q: How can Saipem help its clients create value based on its international experience and services?

A: Every international company coming into Mexico is used to working in adherence to international standards. The Energy Reform led the country to adopt these standards and move beyond the local rules previously in place. There are only four or five international contractors with the capacity to globally serve these market players and Saipem is certainly among the most prominent of them. We are recognized for our ability to perform the work according to the safety, quality and schedule requirements. The highest priority is given to HSE and security standards, and we have already worked with many of the IOCs present in Mexico. Sustainability and environmental awareness are also top priorities for us. Moreover, Saipem has the financial stability and the credentials that instill our clients with confidence. We minimize their risks, we have the engineering, construction, transportation and installation expertise and we can rely on distinctive assets such as our state-of-the-art fleet of vessels for pipeline installation and field development. We have been operating in Mexico for more than 20 years in the offshore and onshore segments, which means we can offer extensive experience in the Mexican market.  

Q: Which factors will drive productivity in deepwater exploration once the sector takes hold in Mexico?

A: Deepwater is a new frontier for Mexico and we are the first major contractor developing a deepwater project here, which entails development at a depth of 1,400m off the coast of Veracruz. Saipem started deepwater activities in the late 1990s so it has accrued vast experience in this field. We also recently added new vessels to our fleet, such as the SAIPEM CONSTELLATION, which we will use for rigid and flexible pipe installation in deepwater fields.