Mexico’s O&G Industry Needs Urgent Modernization: DG Impianti

Q: How has DG Impianti adapted its global experience to the Mexican market and the specific challenges the country has faced in recent years?

A: DG Impianti entered the Mexican market in 2018, starting with the greenfield development activities with Eni. Following that, we began working with Hokchi and, more recently, we have been focused primarily on projects for Eni and Fieldwood. However, in the current context, we are witnessing a significant slowdown in Mexico’s oil and gas sector. In response, we are shifting our focus and investing heavily in innovative technologies. We have also been involved in a masterplan study to develop a gas gathering system in Aguascalientes region of Mexico, aimed at promoting the first energy transition in Mexico shifting from Oil to Gas. 

We have developed an Eni patented technology and will be presenting a technical paper on it at CMP. This reflects our commitment to innovation, particularly in clean and green technologies, including wind and geothermal energy. DG Impianti continues to invest in R&D, with a clear focus on creating new technological solutions, in collaboration with Academia and Research Center.

Q: 2018 is quite an interesting year to have entered the market. How did that process unfold?

A: Initially, we established a local branch of DG Impianti in Mexico. In 2020, we expanded further by setting up a local legal entity. Today, we operate two companies: one under DG and another under Italfluid.

In 2021, Italfluid acquired a majority stake in the DG Group. Italfluid Energy, based in Italy, now owns both DG and Italfluid, consolidating our operations under one corporate umbrella. From there, Italfluid manages activities in Mexico and other countries where we operate.

We are exploring opportunities for professionals in Mexico to collaborate on projects in countries like Congo and Indonesia. Since we have fully adopted remote and smart working models, our teams in Mexico can now contribute to global projects around the clock.

Several companies see significant potential in exporting technology from Mexico. That is something we also believe in, especially given the current environment. However, it is important to clarify that the technology we recently developed originated in Italy. That said, we are presenting ourselves as a unified group in Mexico, Italy, North Africa, East Europe, Middle east and beyond. Our aim is to work collaboratively across regions. If a solution is needed somewhere and we have the expertise, we will pursue the opportunity regardless of location.

Q: How are you approaching diversification both within and beyond the oil and gas sector?

A: Diversification is a key strategy for us. As I mentioned earlier, we are developing technologies focused on green energy, including hydrogen, wind energy, and waste recycling.

One area we are exploring involves rare earth elements, which are present in all technological devices, like smartphones. These materials, which primarily come from China, are essential for modern technologies. We are working on solutions to recycle and repurpose them, contributing to a circular economy. That is an area where we are making targeted investments.

Diversification is essential. But these developments are also directly relevant to oil and gas. When I visit places like Villahermosa, I often see flaring, which represents a major opportunity. We want to offer solutions to capture and utilize that energy more efficiently.

Q: How do you uphold operational standards when working with companies here in Mexico?

A: It was relatively straightforward for us to enter the Mexican market, especially through our partnerships with international companies such as Eni, Hokchi, and Fieldwood. These collaborations helped establish our credibility. Working with local Mexican companies has proven more challenging. Once they engage with us, they see the value. However, securing a meeting or advancing to a concrete proposal can be difficult. The process is often drawn out.

Our technological solutions are designed to save money and improve efficiency, which is exactly the kind of value needed in the current environment. But awareness and accessibility remain hurdles. Our agility could be a key differentiator.

We are a small sized  company, which allows us to avoid excessive bureaucracy. Clients come to us, and we can respond quickly and implement solutions without delay. Speed and flexibility is what sets us apart. In contrast, when we search for suppliers here, we often find the process to be slow and inefficient. Too much time is lost in coordination.

Q: What are the biggest challenges facing the upstream oil and gas sector in Mexico, today?

A: There are two main issues: outdated equipment and insufficient safety standards. Much of the technology in use is obsolete, and safety protocols are not at the level they should be. This presents both a risk and an opportunity for modernization.

Q: How has your DeepSense technology grown in Mexico, and what benefits does it offer?

A: We see great potential for this service in Mexico, especially because of the extensive pipeline infrastructure. However, we have not yet deployed it locally. The reason is that DeepSense is a relatively new technology that took considerable time to develop. It is patented by Eni, and we hold the exclusive license since last year to operate it globally through DG and we are starting the first contacts for the diffusion of the service; during the CMP of Acapulco, we will also present a paper on DeepSense.

DeepSense helps operators save significant costs. Normally, to inspect pipelines, companies use intelligent pigging, which is extremely expensive and requires production shutdowns. This is very costly for any operator, especially for companies like PEMEX.

With Deep Sense, we use a cleaning pig, which is a standard, low-cost device. This small chip is attached to the pig and allows us to collect detailed data about the pipeline’s internal condition, including pressure and cleanliness, without stopping operations.

It is a much more efficient and affordable alternative. After a single inspection, you can determine how clean the pipeline is and how many additional runs are necessary. You can also optimize chemical usage, which further reduces operational costs and environmental impact.

Q: What are your top priorities and strategic goals in Mexico over the next two years?

A: Our objective is to gradually expand our full suite of services or what we refer to as a 360-degree offering. So far, we have entered the market cautiously, almost on our tiptoes, so to speak.

We have grown by bringing in specialized teams from Italy. Our company designs and builds its own technologies and equipment in-house, ensuring a high level of standardization and quality. Once developed, we implement these technologies around the world, in Mexico, North Africa, and beyond. Locally, we hire teams to operate and maintain the systems, trained according to our standards to ensure safety, reliability, and performance.

DG Impianti Industriali is an Italian engineering, project management and maintenance firm founded in the 1960s. It focuses on the industrial sector with a strong focus in the entire oil and gas value chain.