Raymundo Piñones
Director General
View from the Top

The Joint Voice of Mexico's New Operators

Wed, 01/20/2016 - 14:51

Q: What type of representation and action does AMEXHI strive to undertake on behalf of its members?

A: AMEXHI is the only association which gathers the upstream players in the industry; that means the companies whose activities are only exploration and production. We currently have 42 members, an excellent mix of nationalities and sizes which gives us a global perspective, a large array of company types, and also a capacity for technological advancement and innovation. We have the major IOCs, large independents, firms specialized in unconventional resources, NOCs, and eight new Mexican companies. AMEXHI is organized by a general assembly, where all members are represented, a board of directors that looks at daily decisions, four committees that handle finance, technical issues, external affairs, and legal affairs, along with my position. All members are able to contribute through the committees in generating the position of AMEXHI which is the one that eventually is shared with consultation councils and authorities, and it is through their opinion and technical expertise that the committees agree on a common voice of the industry which is then shared with the different authorities.

At this point, AMEXHI is assisting different public and private entities in order to shape the new hydrocarbons industry, considering the challenges that will come when companies start operating. At the moment, these challenges are strictly theoretical until companies have a local operation. Nonetheless, we are focusing on the creation of a new sustainable and responsible hydrocarbons industry. Although ensuring the attractiveness of Mexico as an investment destination is not one of our direct objectives, we support the government through technical opinions in choosing the right policies to achieve this goal. We do that by sharing best practices and acting as the common voice of the industry to the authorities. We interact with authorities and the ministries through the formal consultation processes, for which we are part of their consultation committees, and work with them on most pieces of regulation they issue.

Q: How have AMEXHI and its members contributed to the success of Round One so far?

A: The first three calls of Round One have demonstrated that the government is able to deliver a very ambitious program. Having said that, Round One will only be the first step of this program, and we are already halfway there. The successful implementation of the Energy Reform will depend on the long-term creation of a new hydrocarbons industry with a variety of players along the whole value chain. Seven of our members are or will soon be operators or are in a consortium with an operator. We have enabled the sharing of a common vision, and that has been AMEXHI’s great delivery. We have been able to gather the opinion of the upstream hydrocarbons industry giving one more voice to the government and different decision makers on which policies to adopt to turn this into a success. We will keep working and doing what we have been doing. I would not say there is one specific challenge. Everything has a certain degree of difficulty to it, given the amount of changes the industry is experiencing.

Q: What are your priorities for the following years?

A: Since we are a new organization, we will work on continuing the institutionalization of AMEXHI, which means finding the right connection mechanisms with other associations, international entities, NGOs, and the government. More importantly, we will continue to gather the view of the industry assisting the long term process of creating a new, safe, sustainable, and responsible hydrocarbons industry. In ten years, AMEXHI would also like to see Mexican companies becoming competitive globally; not only the upstream players, but also the Mexican service providers.