New Mexican Operator Sees Few Barriers to Ambition
STORY INLINE POST
Q: What makes Mexico a good place to start an oil and gas company, despite the low oil price environment and concern about the conditions for Round One?
A: Jaguar E&P was conceived as a company with Mexican capital and Mexican talent that will generate value by building on today’s specific opportunities while maintaining a clear long-term vision. We understand the risks of this low-price environment but it could potentially lead to fewer companies seeking quick profit and more solid bids, opening a space for serious and committed companies like ours. As for Round One, while there are concerns about the contracting regime, we believe that institutions like SENER and CNH are doing a conscious and professional job. They will make sure that the new operators of Mexican oilfields are serious companies which will maintain a sustainable industry-state balance.
Q: How will your operational and financial goals influence the type and size of fields that you would like to operate?
A: Our initial strategy is to actively participate in onshore fields. We understand the variety of existing reservoirs, ranging from shallow conventional sandstones to deep HPHT naturally fractured carbonates and shale plays. We also know how to work with light, heavy, and extra-heavy oil, gas, and condensates with a high production of CO2 and H2S. Jaguar E&P is aiming to quickly consolidate into a group with a strong technical background that will be able to create advanced and optimum field development plans in any of the environments mentioned above.
We are not limiting the scope of our work. Once we buy the data packages, we want to dedicate the time and effort to study all possible alternatives. We will not just look at potential new wells, at infill drilling and/or workover activity, but also EOR and IOR projections to ensure the highest recovery factor and economic benefits for Jaguar E&P, the country, and local communities.
Q: Which skills, capabilities and experience place your team in a unique position to partner with international operators in the Mexican market?
A: From a technical perspective, we are proud to have some of the best and most recognized Mexican geoscientists and petroleum engineers within our ranks. Our collective knowledge includes experience from almost all types of oil and gas reservoirs in Mexico. Also, our understanding of the Mexican business landscape gives Jaguar E&P and its parent company an advantage. Our management team has a solid track record of successfully leading and operating one of the most recognized industrial conglomerates in the country. Furthermore, our senior executives have vast experience dealing with previous legislative reforms in Mexico. This skillset and experience provides Jaguar E&P with unique value as a strategic local partner. We understand that all processes related to the opening of the oil and gas industry are a fresh experience for all parties involved, from private companies and government regulators to PEMEX and local communities. This situation will definitely bring about unforeseen challenges. However, we are confident that our team has the capabilities to successfully overcome the learning curve. Jaguar E&P may partner with companies that have a similar long-term vision to ours. As mentioned, we are here for the long run. To achieve a successful long-term endeavor, we need to partner with companies that have a strong operational background and proven technologies that are applicable to Mexican fields.
Q: What will be the role of Mexican operators in the upstream market?
A: Mexico needs to develop a national E&P industry and the framework is already set for Mexican businessmen and entrepreneurs to take the lead. Mexican operators are expected to be the first to establish better ways to work alongside local communities as neighbors, as well as to operate efficiently while taking advantage of a low cost- structure. Mexicans need to take the lead in innovation in order to develop new processes and technologies. Jaguar E&P will seek to accomplish this and support the creation of a proactive and sustainable industry for the benefit of Mexico.
Q: What would you like to achieve before the end of 2015, and what would be your ideal contributions to the long- term development of the Mexican oil and gas industry?
A: For 2015, we would certainly like to be in the list of winners to operate an oilfield. We want to build one of the largest independent E&P companies in Mexico. This has been our vision since day one and it permeates our objectives for the future. We want to be seen as one of the top companies in Mexico, as a respected organization hailed for its strong values, its people, its care for the environment and communities, for the quality of its work, and for its financial results. Eventually, we want to create the awareness that a Mexican oil and gas company can evolve to operate internationally and compete with industry leaders.