Lo Van Wachem
Vice President Mexico, and Global Manager of Projects and Developments
ADIL
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View from the Top

Offering New Perspectives for New Fields

Wed, 01/20/2016 - 12:27

Q: How does ADIL support newcomers in the oil and gas industry?

 A: ADIL is a ten-year old company that offers full life-of- field consultancy services for the oil and gas industry. We offer support across all stages, from exploration, through development and production operations to decommissioning. Our clients generally have no idea how to develop projects that could provide the greatest value, so we are present from the initial processes. The company is relatively unusual as it does not own equities in oil and gas, or participate in production itself. The assistance we offer is generated from our offices in Aberdeen and London. Providing support for entering players usually means working on limited projects that have technologically and commercially challenging fields, and in this respect, innovation helps us improve production efficiency. Lately, there has been an increase in due diligence work requests around asset acquisition either in bidding rounds or expert witnessing.

Q: What are the characteristics of the individualized management system that ADIL offers?

A: Our services are part of an exhaustive development management program that varies from exploration to developing and operating fields, and managing partners. Our stage gate system is tailored toward the type of development stage of a given client, because first time developments require a different approach than a billion- dollar project. ADIL operates with an internal system that fits the norms of an operator. Through personal experience, our company can easily teach our clients how to use it, with best practice procedures. Players appreciate that the system is rooted in our server, and we take care of the maintenance for them.

Q: What would you consider some of your biggest international success stories?

A: In 2007,we deployed a five-person team in the North Sea on a US$2 billion development in the harsh weather conditions west of Shetland. The Dana-operated project sought to develop two discovered oil fields, with a subsea development of at least five production and four water injection wells plus two exploration wells tied back to a newly built FPSO with oil export using shuttle tankers. ADIL worked with Dana on the project select phase, considering a number of alternatives including tieback to a leased FPSO, before deciding on construction of a new build FPSO. We undertook overall management of the execution plan including supervision of construction of the FPSO in China, integration of subsurface and drilling into an integrated development plan, developing the project contracting strategy, and taking responsibility for subsurface, drilling and wells, subsea activity, facilities, and operations.

Q: What are some of the most significant challenges operators will encounter in the development phase?

A: The biggest challenges they face will be community issues, and a shortage of experienced people in Mexico is certainly problematic for companies in the industry. CNH estimates that it will need thousands of engineers in the next five years, a gap that will be difficult to satisfy. Lastly, understanding how to access existing infrastructure and negotiate clear terms will be particularly problematic, as players must consider the conditions, reliability, and access opportunities that are available before making an investment in order to guarantee smooth processes. With Mexican partners, ADIL is in the process of providing diligent infrastructure assistance clients may have to use in the future in order to make sure they receive reasonable fees for using their equipment and include details about maintenance, inspections, and repairs. We see considerable potential for the development industry in Mexico and we hope to be heavily involved.