Paving the Way for Foreign Technologies, Services

Q: What added value does NovaOil provide to the Mexican oil and gas industry in Mexico?

A: Our main added value is offering consultancy services for technologies and solutions in the oil and gas industry. Our services start from the very beginning of the process, when the client is just considering Mexico as an option to invest in. The traditional way of doing business is based on foreign companies having agents or distributors hired in Mexico to develop their business in the country. It is common to see representatives of PEMEX, the Ministry of Energy or the Mexican regulatory institutions going abroad and talking about investment opportunities that they expect in the country, but the truth is that small and middle size companies do not see that investment potential as accessible for them because they know how hard it is to develop a business unit in a foreign country. We provide our services at a very reduced price compared to our competitors because we want to reach a wider market, especially the one that covers small and mediumsize companies. Every technology and service we introduce into the country is well thought-out in the technical, legal and economic aspects so potential clients can be sure that their businesses are safe and sound here.

Q: Why is your consultancy approach better than the traditional way of hiring?

A: We avoid following the traditional how-to-do-business scheme and instead prefer to highlight our consultancy services because we believe that the traditional approach diminishes the competitiveness that both the interested company and the middleman can reach. This is because under a representation scheme, foreign companies usually sign an exclusivity agreement and the middleman receives a certain revenue from the sales, and we have identified two scenarios that usually happen. Either activities go better than expected, and then the middleman wants to increase its share of the revenues, which puts the company at its mercy, or activities go worse than expected and then the middleman does not have an incentive to keep working with the company, therefore strongly decreasing the possibilities of the company to consolidate its business and presence in Mexico.

Q: Why is it important to introduce new and better technologies and services into the country?

A: Introducing new technologies and solutions is not only beneficial for private companies, but also for the government, because more efficient and profitable operations mean higher production, which means higher revenues for the government and therefore the biggest benefits for the Mexican people. By introducing new technologies into the country, we are helping in the development of the Mexican oil and gas industry and bringing an additional benefit to the Mexican people. If a foreign company is successful when introducing its business into Mexico, then the company will have the possibility of opening offices and even manufacturing facilities in the country, therefore creating jobs and further developing the economic growth of the country.

Q: What would be the best project to highlight NovaOil’s capabilities?

A: In October 2018, we received, for the second year in a row, 15 Norwegian companies that wanted to pitch their technologies and services to oil and gas companies already settled in Mexico. We helped them set up meetings with operators so they could receive constructive feedback and generate interest among them. Some operators showed great interest and now are in talks to perform field tests and check how the technologies work under real conditions. This specific case was possible due to our honesty and values. We met these companies during a forum, and while pitching our services they told us that a company in Mexico asked them for money to get a meeting with PEP’s Director General. We explained them that, as PEMEX is a public institution, they should not be asked for money, and got them the meeting.

NovaOil is a Mexican company comprised by a multidisciplinary group with broad experience in the oil and gas industry. It provides integral solutions in technological management, consultancy, technical assistance and asset management.