Joining Forces for Great Things: Summum Projects in Mexico, Gulf

Q: What differentiates Summum from other engineering firms in the oil and gas sector?

A: Summum is a well-established company that has been operating in Mexico since 2010. A significant added value is the strength of Gulf Companies, which recently acquired 100% ownership of Summum Projects Mexico. Gulf Companies has 70 years of experience in the oil and gas sector, specializing in engineering, project management, and construction management. Gulf Companies has developed projects in North Africa, the Middle East, the European Union, and some in Latin America. Following the acquisition, we aim to solidify a platform for executing more projects throughout Latin America.

Q: How do your methodologies enhance efficiency and cost savings for your clients?

A: We leverage the expertise of our high-caliber staff to execute projects efficiently. Our team includes individuals with extensive experience in the industry. This expertise comes not only from our personnel in Mexico but also from our parent company in Houston, Texas. Our experience, state-of-the-art software, and robust tools allow us to create value for our clients. We are not just a company that sells engineering services; we are a firm of engineers who deliver innovative solutions to our client’s most challenging projects. We understand the concerns and challenges our clients face, giving us the advantage of offering solutions rather than just selling engineering hours. 

Q: How have changes in private participation in oil and gas projects impacted your involvement in these projects?

A: The sector experienced a period of openness during President Peña Nieto’s administration, followed by significant changes during the administration of President López Obrador. This shift has greatly impacted how projects are executed and the role of private entities. From a regulatory perspective in terms of engineering work, the changes have not been significant. The main impact has been on permitting and the project execution and construction process. The quality and environmental standards applicable to us have remained the same.

The type of projects anticipated in the coming years has not changed much. We expect continuity in exploration and production projects from PEMEX. Summum’s private-sector clients in Mexico are focusing on exploration and production. Therefore, we anticipate continuity in projects and the expansion of those already underway, such as a potential reactivation of the Cantarell project. 

There has been a glimmer of positive change in the past year and a half, which can be observed in the Zama, Trion, and Lakach projects. These are the first projects where PEMEX has acknowledged the need for private sector support. These three projects illustrate that when the private sector and the government collaborate, they can achieve great things. We are particularly pleased to be part of the Zama project, for which we are executing the engineering for the onshore facilities.

Q: How has the acquisition by Gulf Companies impacted Summum’s operational strategies and business objectives in Mexico?

A: Gulf Companies’ overall strategy is to re-engage in international projects. In recent years, with advances in fracking technology, which has allowed increased production in Texas’ Permian and Eagle Ford basins and other basins in the country, the United States became the world's largest oil producer and exports a significant amount of gas. Much of this gas comes to Mexico.

Under Gulf Companies’ new administration, led by President & CEO Kent Wilfur, we have renewed our participation in international markets. We are expanding in Latin America and are opening offices in the Middle East to serve clients in that region and in North Africa. The company's overarching strategy is to create international opportunities.

In Mexico, Summum will leverage its strong client base to grow. We want clients to always remember the name Gulf Companies, whether they are in the United States, Mexico, Latin America, the European Union, or the Middle East. Our goal is to have the capacity, offices, personnel, and infrastructure to execute projects wherever clients need us. Our goals for Mexico include strengthening the administrative side of the company and setting ambitious targets for revenue and sales. These targets are being led by a long-time collaborator of Summum, Daniel Zuluaga.

Q: How is the company investing in preparation for the energy transition?

A: We are approaching this transition with caution. We always monitor market intelligence to discern what is viable and what is not. In the United States, for example, wind and solar energy projects receive substantial government support to make them profitable. In Mexico, we are also pursuing similar projects, with our business development team closely following these opportunities. We are also researching and bidding on projects, while engaging with key players. For example, we have been in discussions with a company in Mexico that is developing a methanol plant on the Pacific coast and is also working on a hydrogen generation facility.

We are cautious about investing in these technologies, but we also strive to keep our technical staff updated. Training and development are crucial so that when these projects come to fruition, we can actively participate in them. 

Gulf Companies has greenhouse gas management capabilities. In the United States, Gulf Companies is at the forefront of CO2 capture, transportation, and injection. This technology plays a crucial role in reducing greenhouse gases. We have the technology, trained personnel, and the experience to support CO2 capture, transportation, and injection.

Q: What is the outlook for the near term, and which projects are gaining the most importance?

A: We maintain close contact with PEMEX's exploration and production sector to stay informed about upcoming developments. The Zama project, which aims to produce between 180,000 and 200,000 barrels per day, is highly significant. We hope that PEMEX will continue to open up to private investment for the development of additional wells, both onshore and offshore. This is a major investment that would be nearly impossible for PEMEX to undertake alone. 

Projects like Zama, Trion, and Cantarell will likely see bidding soon. Mexico aims to increase its daily oil production capacity, so projects like Zama, Trion, Ixachi, and Hokchi II are promising, as the government is focusing on these areas. We also have the capabilities to build infrastructure to transport natural gas to southern regions of Mexico, which would increase the economic activity and quality of life for people of the region. 

We have also identified environmental issues we could tackle, such as the flaring of gas associated to oil production that could be recovered but is being wasted and contributing to the greenhouse effect, due to a lack of infrastructure to economically separate, re-compress and transport. Waste-to-energy projects are also interesting. We have actively pursued these projects and believe they could become a reality in the coming years.

Q: What are your expectations for the rest of 2024 and 2025?

A: Financially, we first need to complete all our internal projects on time and as planned. We also need support from PEMEX to  fulfill their financial obligations to contractors like ourselves in 2024. We are also expanding our client base and attracting new customers, and will continue to do so during 2025 and 2026. We are close to hitting our financial targets for this year. 

As we transition to join Gulf Companies, one of our main goals is centered around  achieving a smooth integration  of our workforce. It is important to make staff feel welcome, build a cohesive team, and establish clear lines of communication between our Mexico City and Houston operations. We plan to achieve cultural integration by the end of the year, which involves making parties feel welcome and committing to achieving common objectives. Our success will depend on our mutual support between offices. So far, the integration has been positive. The acquisition by Gulf has been advantageous, as it now provides us with a parent company that amplifies our potential to compete for larger and more significant projects, not only in Mexico but throughout the region. 2024 is already on track to be an excellent year for the company.

Summum Projects México is a midsized engineering service provider with over 14 years of experience in Mexico. It delivers regional expertise and offers comprehensive services in the oil and gas, energy, and mining sectors. It was recently acquired by Gulf Companies.

Gulf Companies is a leading provider of engineering, procurement, construction management, and technical services. Known for their extensive experience and expertise, backed by over 70 years in the industry Gulf’s professional team excels in engineering all aspects of oil and gas production facilities, transportation systems, storage facilities and more. The company is dedicated to delivering safe, sustainable solutions to meet the evolving demands of the energy sector. In a strategic move to enhance their capabilities, Gulf Companies recently acquired Summum Projects Mexico, further expanding their reach and reinforcing their commitment to energy excellence.