Investing in Technology and Human CapitalTue, 01/21/2020 - 15:26
After Mexico’s Energy Reform, the number of seismic companies entering the market grew rapidly and, with it, so did the level of competition. “Mexico’s offshore is completely covered now and competition onshore is also intense. Multi-client activity has become more than just seismic surveys. It´s becoming a stronger and integrated part of the business model — further leveraging our full scope to deliver the best understanding of the Earth’s subsurface. CGG will use this to its advantage to better meet its clients’ needs and grow,” David Amaya, Geomarket Director and Country Manager Mexico of CGG says.
CGG’s strategy is to strengthen the leadership position of its three core businesses to ensure their future growth and to meet the exploration, development and production needs of its clients. These are geoscience, with its differentiated technology and services, multiclient, which offers the industry’s most technically advanced seismic data and geologic studies in the world’s key locations, and equipment, which with its established leadership in seismic equipment and downhole gauges, is highly valued by our clients, and based on this it has performed well through the industry’s cycles.
The licensing rounds and farmouts carried out over the last few years gave international and national players the opportunity to step up and take a shot at striking oil in the Gulf of Mexico. “Most active IOCs are large companies that have already won blocks during the rounds. However, their technical experts are not only based in Mexico but are also in their home countries,” Amaya says. “Now there are more players in the industry along with more activity and more opportunity, whereas earlier, PEMEX was the only client.” CGG has worked for PEMEX in the Perdido area of Mexico’s most prolific deepwater basin for a number of years and Amaya says this was one of the geoscience company’s biggest success stories. “As a result of our experience, we are now able to work for several clients, providing far more detailed images and specialized geoscience services, giving companies greater certainty on where they should drill.” During the licensing rounds, the new players awarded blocks in the Perdido basin were majors such as Shell, Qatar Petroleum, BHP Billiton, China Offshore Oil Corporation, Exxon Mobil, Chevron and Total.
Subsalt imaging of Perdido Basin remains challenging due to the presence of large, complex salt bodies and the limited penetration of diving wave energy with conventional wideazimuth acquisition. CGG´s advanced imaging algorithms and technologies and its reservoir characterization software will play a key role in the development of this basin. Computer power alone cannot bring value, it is also the experience of our interpreters coupled with our unrivaled portfolio of imaging technologies such as reflection FWI and Least-Squares Migration that is needed by PEMEX, its partners and IOC's to take better decisions that increase E&P success and reduce costs and risks.
Amaya says international companies will bring increased activity and expertise to the Mexican oil and gas sector, especially when it comes to deepwater operations. To be successful, these companies also require the expertise of Mexican companies. This is an environment where CGG can excel and the company is already seeing results from its efforts. “In 2019 we are working in Mexico on several imaging projects in key areas for PEMEX and its partners, as well as providing Seismic Reservoir Characterization technology and service that leverage Big Data based on analytics, machine learning and computing power.” Amaya also points out that “the new GeoSoftware releases are cloud-ready and offer innovative Machine Learning capabilities.”