Arindam Bhattacharya
President of Mexico and Central America
Schlumberger
/
Insight

Mexico Becomes a Primary Market

Wed, 01/22/2014 - 15:22

In April 2013, Schlumberger upgraded the status of Mexico in its global portfolio. “Mexico used to be one of the 35 GeoMarkets that reported to an operating area. But as a result of our long commitment to PEMEX and the Mexican oil and gas industry, Mexico has been designated as an operating area within the Schlumberger corporate structure – the Mexico & Central America area – reporting directly to our corporate management and to our worldwide President of Operations. This underlines the importance that Mexico holds for the company,” says Arindam Bhattacharya, President of Mexico and Central America of Schlumberger, explains. The recent events in Mexico’s oil and gas industry have created new expectations for Schlumberger and its 6,000 Mexican employees. “I came into this position to lead the transformation of Mexico into one of our main areas. We are conducting internal initiatives to prepare the company for the increase in activity that will take place in this market,” says Bhattacharya. “We need to prepare the organization so that it is ready to evolve along with the rest of the oil and gas industry in Mexico. Schlumberger needs to adjust itself to respond to the needs of a multiple customer base, while still serving PEMEX.” Ever since the 2008 Energy Reform, Schlumberger had been readying itself for the changes a full-blown reform could bring. “We anticipated the changes by being proactive with our internal restructuring, even before the original proposals for the 2013 Energy Reform were announced,” says Bhattacharya. Schlumberger drafted an internal restructuring plan and decided to go ahead with it on April 2013. “We are pursuing a proactive strategy instead of reacting to the Energy Reform,” Bhattacharya explains. “We are making sure that Schlumberger is well represented in the different disciplines that are to be affected.” The Energy Reform, according to Bhattacharya, sends a clear message to international players that are interested in coming here: adapt if you want to succeed. “The more complex projects will benefit from risk-sharing, both in terms of technical and operational experience as well as in the financial risk distribution prospects,” Bhattacharya comments. However, he does not expect more decisions to be taken from Houston, despite the industry’s internationalization. “We might see a transition period where more work is conducted from Houston, especially related to long-term projects requiring heavy investment, but this is not the future of the industry,” he comments. “Mexico is very well connected, businesswise and logistically. After a certain time, companies will prefer to be physically here in Mexico.” This is exactly what Schlumberger decided ten years after being founded. “Our intentions are to push for more jobs and economic growth at a national and local level in Mexico, and these are not improvements that can be driven from a remote location,” Bhattacharya explains. “Schlumberger will continue its longstanding collaboration with PEMEX and the rest of the industry to adapt technological and innovative solutions, so that the objectives of the Energy Reform are not only met, but exceeded. This is our commitment to Mexico.”