Offering High-End Solutions for Value Creation

Q: What is TSC’s principal added value proposition for drilling and oil field service companies? 

A: Our main objective is to create value for our customers by providing quality products and the best possible customer service. Part of this value creation comes from our competitive DNA: we stand below the benchmark prices for expendables, consumables and drilling goods in the market. The company was initially created to offer solutions in the offshore drilling industry and evolved to other branches in oil and gas services, first in the Middle East and the North Sea and later expanding its operations to the Americas. It is in our DNA to offer integrated solutions that boost our clients’ profitability and help them create value.

Q: How would you assess the company’s development since you started operations in Mexico? 

A: In the particular case of Mexico, we have accomplished our initial targets for this market. Our revenues for the last three months of 2017 and the first three of 2018 have surpassed our initial expectations. Part of this success is due to the costeffective products we offer and that they are positioned at the top tier of the industry. We outperform other brands in this field. Looking to the end of 2018, we expect a 35-40 percent increase of our initial target. 

Q: What is the secret behind your successful strategy in Mexico? 

A: We work under a triangular offering that starts with our service, goes on to our availability of products in the market and ends with the competitive prices we offer. When we first opened in Mexico we had a hard time attracting clients, mainly due to the fact that people mistakenly saw us as a Chinese company based on the Chinese investments present in the company. As time moved on and the first contracts came along, companies recognized our fast response times and that we delivered on time and in good shape. These three factors prompted our success in this market. 

Q: How is your partnership with PEMEX strengthening your presence in Mexico? 

A: From a project standpoint, PEMEX is our biggest source of revenue, although this is not the case for our day-to-day business. We have already delivered the major components for the first two rigs PEMEX required from us. Once they are rigged up and start drilling, we will move on to the third rig. These rigs were about 20 years old and we made them almost like new by modifying certain components without having to change the whole structure. PEMEX is getting a sixth-generation rig at a much cheaper price and does not have to purchase new equipment. Once we get these rigs up and running, other opportunities will arise. We expect bigger doors to open when this delivery is completed within the next two years, creating a doublesided success story, for PEMEX and TSC.

Q: What elements make Mexico an attractive market for TSC? 

A: Our CEO and co-founder has high expectations for Mexico and for our operations here. He made a calculated decision to venture into the country, to come and meet partners and to open the market for us. We see big opportunities in providing PEMEX with rig components and long-term offshore rigs. 

Q: What impact will the changes at PEMEX have on TSC and to the industry in general? 

A: The changes at PEMEX have been dramatic and a vast number of people inside the company have been pushing for more. We remain true to our target to build these business lines and to focus on our partnership with PEMEX. During our time here, we have seen revenue jump and this has made it easier to implement our expansion plans in Mexico, to hire more people and to keep pushing the business forward. We have big expectations for 2019 in terms of expanding our offices and labor force. On a general note, PEMEX needs to revamp itself if it wants to make a difference in the industry. A wake-up call coming from the top of the ladder could positively impact the company’s health and operability.