The Path to Success for Partner of Shallow Water MajorsBy Pedro Alcalá | Fri, 08/07/2020 - 10:34
Q: How has DG Impianti Industriali managed the COVID-19 outbreak?
A: In Italy, problems began prior to mass infections in North America, and as a result many of DG Impianti’s projects all over the globe had to be put on hold. We established a goal of getting through the crisis without layoffs, which we have accomplished so far in our Italian headquarters. In Mexico, we aligned ourselves with these objectives and strategies in both our Mexico City and Villahermosa offices, along with our Tabasco worksites located both onshore and offshore. We are also following the strictest of industry guidelines and best practices regarding pandemic precautions. We can confirm that we did not apply any personnel cuts both in Italy and Mexico.
Q: How would you describe the impact of oil price volatility on your projects and operations?
A: As an EPC constructor and asset manager, we understand what our clients need. We have been affected by changes in investment volumes and short-term projects as a result of the current oil price situation. Lower oil prices mean all NOC and IOC investments slow down so that the major oil companies can adapt successfully to the new circumstances and prevent permanent cancellations down the road. The facilities that we finished last year and those we are working on all receive our attention in terms of operation, supervision and engineering, and that requires a degree of availability from our subcontractors that are also facing challenging times due to this situation. Response times have been extended and supply chain communications have lagged. Nonetheless, we have always insisted that our main competitive advantage is our speed and agility, and we have kept up with the needs and implications of those processes in order to maintain that competitive advantage. We have sustained our service quality standards throughout this critical period so as not to contribute to these industrywide deficiencies. We want to be reliable providers of solutions to our clients when it comes to equipment deliveries and engineering management responsiveness.
Q: How have you redesigned your supply and procurement networks as a result of the pandemic?
A: Our main objective was to maintain our response times in a most efficient manner. The oil and gas sector, from our perspective, is characterized by a constant need for surveillance. There’s always a new urgent need for equipment, personnel and services, and our clients’ expectations call for immediate response times. Our suppliers in Mexico have demonstrated exemplary commitment and attentiveness to our needs. They have been quick and efficient in all of their interactions with us. Suppliers are highly competitive companies and they know the market quiet well. Local Mexican companies from Tabasco have supported us successfully and have allowed us to maintain these quick and efficient response times.
Q: How would you described the ongoing performance of the terminal you built for ENI?
A: This facility was finished in record time. While we cannot share the exact numbers or production levels, we can tell you that ENI has been very satisfied with the terminal’s capabilities.
The work we are doing for ENI is different than the work we are doing for Hokchi, where we are supporting the construction of its production system connected to the city of Paraiso and the port of Dos Bocas. We are not contracted as a full-on EPC to Hokchi or to the construction of any of its facilities, but instead we have our engineering teams on its platforms and the plant, both in Paraíso and Tampico. We are also facilitating the procurement of specialized equipment, such as three phase separators, to support Hokchi and its early production goals. We recommended the construction of an early production facility for Hokchi, and we are providing support in the completion of these objectives. We are helping Hokchi as an operator to set up its whole production system through this alternative. Early production systems are common in the North Sea, the rest of Europe and North Africa, but they are more of a novelty in Mexico. Therefore, we are trying to prove to other potential clients in this market that we can facilitate this kind of arrangement. Our goal is to implement the time to market, this means the recovery of the client investment in a short time.
Q: How are you adapting the characteristics of the equipment and systems to Mexican crude and the infrastructure at your worksites?
A: The Mexican crude is not such an heavy one, compared to others in Latin América. In DG experience, talking worldwide, we faced many challenges in climate, geophysical and logistic in many locations. We had amazing local support in different levels in México, especially in the Tabasco area. DG Impianti works all over the world, including significantly more inhospitable environments such as the deserts of North Africa or the Arabic countries. We have adapted and thrived thanks to our experience and commitment working all around the world.
DG Impianti Industriali is an Italian engineering, project management and maintenance firm founded in the 1960s with a specialty in the petrochemical sector but that has expanded into the entire oil and gas value chain.