Juan Távara
CEO
Atlantic Oil & Gas
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View from the Top

New Injection System Speeds Up Production

Tue, 08/29/2017 - 14:41

Q: How is Atlantic Oil & Gas working to improve the Mexican oil and gas sector?

A: Capillary injection systems are not common in Mexico but we are developing this technology with foreign companies that could later become our partners here. The technology has the advantage of producing much faster and directly out of the wellhead. While a common artificial lifting process could take three or four days to be installed, involving several processing systems that include pumps and a team of more than 10 people to manage its operation, capillary injection systems are installed in one day and require between three to four people. Our philosophy is based on incorporating the best technology advancements and we are constantly looking for partnerships that will allow us to introduce cutting-edge technology and added value to our portfolio. Of course, we continue to work with dehydration and dew point systems as part of mechanical refrigeration as well as with compression units for wellheads and compressing stations.

Q: Is Atlantic looking at other business areas to offer more value to its clients?

A: In fact, we are entering a new area: electric generation and cogeneration. We offer a strong added value in this new business segment because we are in contact with several clients that are involved in natural gas. Natural gas for electric generation is a big opportunity because of the new electricity market that is very competitive and requires clean generation for Mexico to achieve the international goals to which it has committed. Ahead of venturing into this area, we have talked with the Ministry of Energy, CRE and CENACE, as well as with the industrial customers that we would be representing. We have also developed management teams and engineering designs. Now, we are working on the financial aspect of the projects and have contacted financial institutions to support the operations. The generated energy will be sold mainly to industrial customers but we are also open to commercial clients.

Atlantic O&G is also looking for a way to create an industrial cluster in Veracruz to take advantage of all the projects that are expected in the state. One great source of contacts has been COPARMEX of Veracruz.

Q: What can Atlantic O&G offer the international companies coming into the Mexican market?

A: We are focusing on creating relationships with the winners of Round 1.3. Those companies received mature fields that are already producing and to improve operations they need to install new equipment , which we can provide, or they will need to provide maintenance for equipment that is already installed. We are experts in those services, having worked with companies such as 5M, CMM, Weatherford and Strata. Atlantic O&G offers these companies and others excellent technologies that require only small teams and that are also economically viable. Some of the products may require a higher immediate capital investment but considering that these technologies will be used for 20 or 25 years, a proper financial analysis will demonstrate that we are their best option.

International companies work all over the world and they always look for the most competitive technologies to implement. With these companies coming to Mexico we can see a big market opening, and although it can be challenging to reach them, we have the advantage of having worked with most of them around the world on individual projects, making our approach much smoother.

Q: How would you rate the success of the Energy Reform in terms of local content?

A: The Energy Reform has been very successful. It has allowed many international companies to enter the market and has resulted in forward-looking investment opportunities. Nevertheless, it still has to procure and allow for more participation of national companies, not only through local content requirements but by allowing them to compete on a level playing field with international companies.