Alejandro Hernández
Director General
View from the Top

Maintaining Leadership in Regulatory Benchmarking

Wed, 01/20/2016 - 17:03

Q: What are the principal challenges that your customers will face in 2016?

A: For international players, the main challenges will be adapting quickly to the Mexican system and learning about the relevant local regulations and geographical conditions. We believe that companies will struggle to understand and adapt to Mexico’s social environment, which is more complex than that in other countries. In this area, we believe that new entrants could benefit from transparent processes and inclusive strategies that involve the community’s participation. We are investing in raising awareness of our products and services. Instead of cutting costs completely, we decided to follow this strategy to keep track of our investments and maximize their impact. We believe that companies need to take calculated risks but always using an established strategy

Q: What is the role of technological innovation in your business strategy?

A: Technological innovation helps us position ourselves in the market and retain our customers, it even works as a marketing strategy. To calculate the economic value of deepwater projects in a worst case scenario, we have developed a process that uses discrete variables, and that is more effective than the methodology used by German companies, which is based on probability principles. For this process, we utilized a simulation methodology and our environmental database to provide each environmental variable with an estimated value, instead of just assuming it. This process has obtained PEMEX’s approval.

Q: What is the role of international cooperation in your business strategy?

A: So far, we have been working with foreign employees through the collaborations we established with companies from other countries, such as Norway and the US. At the moment, directly hiring international employees is complicated for us, but we have been successful in establishing partnerships with international companies. As of today, we are already specialized in certain areas, but we want to continue learning and acquiring new skills to prepare for the new market. As a first step, we are working to enter the risk analysis area, for which we are already certified by TÜV Rheinland to carry out assessments, but we still need to spread the word and keep training our staff in this area.

Q: What makes CSIPA an attractive partner for international companies?

A: Years of experience working in Mexico has given us broad expertise and knowledge of the Mexican market and understanding of PEMEX and the most important governmental agencies. Furthermore, we already have international experience as we have participated as local representatives and distributors of international brands from countries such as Canada and the Netherlands. Moreover, one of our competitive advantages is the environmental database that we have developed for the Mexican industrial setting, which we use to optimize the costs and times of our services.

Q: What has been your participation in Lakach, and what is the current status of the project?

A: We have participated as a regulator during various stages of the project, and all our work has been associated with safety and environmental protection. Due to the regulatory character of our role, the company in charge of the project was obliged to comply with our requirements, regardless of the project’s status. We always work as accurately and efficiently as possible, which is particularly important when the project is not moving as quickly as expected. Moreover, we have contributed to the project by offering financing and in-depth consultancy.

Q: What are the main opportunities for improvement that your company has identified in PEMEX’s processes?

A: We hope that the administrative processes will be transformed to increase PEMEX’s competitiveness. Another important issue is the NOC’s debt that restrains it from investing in new processes and technologies. PEMEX has a significant amount of expertise and skills, as well as qualified employees, but the administrative processes reduce efficiency for the company. If the parastatal wants to compete in the new market, it definitely has to change its work culture and environment.