Alfredo Vidana
Director General and Founder
Copavisa
/
Insight

Outpacing Onshore Industry Expectations

Wed, 01/22/2014 - 11:29

Over the past decade, Coatzacoalcos-based Copavisa has positioned itself in the Mexican oil and gas industry by concentrating on hydrocarbon transportation, pipeline infrastructure development, drilling infrastructure construction, and a commitment to social improvement. Alfredo Vidaña Santiago, Director General and Founder of Copavisa, believes his company draws great competitive advantages from its experience working with PEMEX and its thorough understanding of the industry’s needs. “High standards for quality, safety, and environmental performance are traits that characterize every project we participate in. Moreover, extensive knowledge of Mexico’s different oil regions, paired with expertise in the social and geographic challenges of operating in onshore fields, makes Copavisa a highly qualified service provider.”

Copavisa participated in developing hydrocarbon transportation infrastructure in Cinco Presidentes, where the company connected approximately 100 wells that were yet to start production. Vidaña Santiago outlines that aging pipeline infrastructure and the lack of continuous maintenance posed technical obstacles for this project, while social difficulties in the area were another important factor that influenced the operational strategy. “Our ability to consider the specific characteristics of any given locality to create the best and quickest solution is a critical success factor in such projects,” he says. “To leverage our expertise, the company is also developing its financial capabilities to provide its services in different regions and participate in an increasing number of pipeline construction and maintenance projects.” The firm participated on a large project in Veracruz that involved the construction of a 33km and 10-inch natural gas pipeline through 2010 and 2011. The Rabel pipeline connects all wells in the Cauchy field with the field’s multi-well pad and the measurement and control station (EMC Cauchy), before extending all the way to the Ciudad Isla area. Essentially, Rabel’s aim is to distribute large volumes of natural gas from the south region of Veracruz to the EMC Cauchy. “By overcoming challenges such as harsh terrain conditions and reluctant landowners in this project, we proved that our understanding of the Mexican operating environment enables us to deliver our services flawlessly within the stipulated time,” says Vidaña Santiago.

Drilling infrastructure construction is another of Copavisa’s business lines, in which the company gained experience by working on multi-well drilling pads in Veracruz as well as in Samaria-Luna and Macuspana-Muspac in the south. Vidaña Santiago sees multi-well drilling pads, which are used to take advantage of existing well sites to drill new wells, as presenting growth potential in the Mexican oil and gas industry, and anticipates significant demand growth as new wells are drilled in the north of Mexico. “Multi-well drilling pads have grown increasingly popular in onshore drilling by reducing drilling time. Copavisa is proud to be able to provide these technologies to new players coming into the market,” says Vidaña Santiago. Despite Copavisa’s experience in this array of sectors, it cannot leverage that experience without creating solid relationships with the local communities to carry out the successful development of a project. “They usually have specific demands and we are there to help,” he says. “Copavisa is currently developing a road that will connect Villahermosa with the Samaria-Luna field, as well as a road that connects the Papaloapan B project with the Veracruz region. Considering the importance of understanding subtle varieties in local culture and social characteristics, we look forward to continue developing such projects for PEMEX and offering these services to foreign companies coming into the country.”

As a result of the Energy Reform and the subsequent changes in the Mexican oil and gas industry, Vidaña Santiago is determined to expand Copavisa’s client base to include new companies that will begin operating in areas where PEMEX has current activities. “Our firm is an attractive choice based on our proven track record with PEMEX, and combined with our technical knowledge of the Mexican oil regions,” says Vidaña Santiago. “New operators will be entering the country, which will require much more infrastructure for projects to be successful. Furthermore, our well connection and pipeline construction services are destined to experience growing demand in the coming years due to the substantial investment forecasted for this segment,” he states.