Eduardo López
President and CEO
Sertecpet
/
View from the Top

Proven Technological and Operational Success in Mature Fields

Wed, 01/21/2015 - 14:58

Q: How did the deployment of the Jet Claw Pump System at Muspac and Cinco Presidentes help Sertecpet make a name for itself in Mexico?

A: Sertecpet first established itself in Mexico in 2007, with the view of replicating the success we have seen in Latin America and the Middle East. Since then, PEMEX has been an important customer to which we have had a chance to contribute significant added value. Most of our technologies are focused on well stimulation and our products were certified by PEMEX after passing its technological test. At our own expense, we demonstrated the accuracy of our technologies, especially the Jet Claw Pump System, our software, our downhole tools, and our MTUs. We started the test with a number of closed wells, which are now producing over 7,000b/d. Sertecpet has the ambition to contribute more meaningfully and aggressively to PEMEX in the future. In particular, we will continue to work on the Muspac and Cinco Presidentes assets, where we have seen potential in hundreds of wells. This success gives us a great opportunity to provide additional product and service lines to PEMEX and other operators in Mexico. Sertecpet’s technologies can facilitate the reduction of production costs, a vital area given the current oil price environment, while also helping to increase production.

Q: What are your ambitions to expand the range of your activities in the Mexican market?

A: As a result of the Energy Reform, we are investing substantially in Mexico. We are designing new industrial facilities from where we can run our operations and strengthen our presence with PEMEX and beyond. Tests and production on abandoned wells in mature fields, as well as tests on recently drilled wells, only represent one line of business. Sertecpet has eight lines of business that we want to incorporate into PEMEX, including engineering, procurement, onshore and offshore construction services, reservoir analysis, and the renting  of quick-installation equipment for areas that do not have production facilities. We are also interested in participating in PEMEX’s farm-outs. For this reason, we are seeking strategic partners as, depending on the size of the field and the investment needed, we can enter alone or in association. We have acquired experience over the years in Ecuador, where we operate the Pacoa mature field with Montecz and Edinpetrol, and the Libertador mature field with Tecpetrol and Canacol. Our growth projections are very aggressive. In Peru, Sertecpet has participated in offshore projects for production testing, developed basic and conceptual engineering for gigantic reservoir projects, and carried out full EPC projects in the Peruvian forest. This gives us a good backdrop to build on in Mexico, either by bringing in strategic partners to operate fields or by adding value through transfers of technology, job creation, and wealth generation. Due to our experience, we mainly want to focus on mature fields, where we have the right technology, experience, and credentials to participate. However, we are only aiming to participate in Round Two, as we want to observe the development of the industry more objectively and ascertain who the perfect allies would be.

Q: How will your international experience help you to be awarded contracts in Mexico?

A: Sertecpet has a well-structured assessment model, which it always implements in every market, including Mexico. It is based on four pillars. First, Sertecpet assesses the legal and regulatory framework and the contracts to ensure that we comply with all the requirements and conditions set by a country. Second, we ensure technical compliance, which is our strongest area. It involves Sertecpet carrying out an assessment of the potential of the fields and reservoirs involved, based on our engineering experience, our software, and our knowhow. The third pillar is financial evaluation, which compares the likely returns against the initial and ongoing investments as well as assessing Sertecpet’s exposure level. The final pillar is impact, where we combine all our evaluations to come up with a winning proposal. This is a very transparent process that can secure contracts for us in Mexico as it has in other parts of the world.

Q: How will Sertecpet comply with Mexico’s environmental and safety standards, enforced through the new regulator ASEA?

A: Our internal standards and our integrated quality system are very solid in terms of safety, occupational health, and environmental protection. Before providing our services and technologies to operating wells, we need to comply with PEMEX’s Annex S, which deals with the environmental, health, and occupational safety within the NOC’s activities. Additionally, Sertecpet has experience working in certain fields as a member of a consortium. Therefore, we are experienced in individual compliance as well as in collective compliance in terms of field management.