Reaching the Onshore Value Chain

Mexico is a vast nation with many distinct groups, including indigenous communities. In total, 68 separate languages are recognized by the federal government. While this diversity generates cultural richness, it can also pose issues for major construction projects, says Ernesto Monroy, Director General of Social and Environmental Impact consultancy EcoSocial Soluciones Sustentables, who adds that when a project goes awry it is almost always because of a lack of communication.

“We have seen many development projects across industries grind to a halt in Mexico. The reasons are overwhelmingly bad communication with the communities these developments will affect. Even with technically-feasible constructions, delays are likely if the social aspect has not been addressed. These delays will translate to major capital losses for the developer,” explains Monroy.

Monroy suggests that while some environmental regulation could be reinforced for improved protection, many public institutions are now far more effective than they once were. Born out of Article 19 of the Energy Reform, ASEA was founded in 2015 to supervise the activities and constructions of companies in Mexico’s newly opened oil and gas industry. The body, which works under the guidance of the Environment and Natural Resources Ministry, has provided a point of reference that was previously missing. “With institutions like ASEA, the government is attempting to right some wrongs of the past. Previous studies were not carried out properly and these failings led to environmental damage in Mexico. Their role is relevant and vital.” EcoSocial’s services are spread throughout the onshore value chain in distinct areas of the country. From well sites to construction, the company’s expertise is called into action by clients along every link. Indeed, the company is often first approached by IOCs.