Reformed Environment for Service ProvidersWed, 01/22/2014 - 15:32
Q: What will PEMEX look like after its transformation into a productive enterprise of the state?
A: We have been in a constant dialogue with people from SENER and CNH about this. It is reasonable to expect that the Energy Reform will facilitate the transformation of PEMEX into one of the top five oil companies in the world. Some of the largest oil companies in the world are state-owned companies, such as Saudi Aramco from Saudi Arabia, Gazprom from Russia, NIOC from Iran, PetroChina from China, and Petrobras from Brazil. I am glad that PEMEX is aiming to reach a similar position. The moment that PEMEX stops being the de-facto oil ministry and becomes a corporation, companies will see the changes.
Q: How does the Oceanografía situation change the procurement environment for service companies? Which opportunities does this create for Grupo Diavaz?
A: Oceanografía has worked in Mexico for a long time, accelerating its development during the last two presidential terms. However, its executives have other principles: Oceanografía was known for not finishing the projects PEMEX awarded it and for executing sloppy operations. The company charged low fees because it did not pay its employees any of the mandatory benefits required by law. With all this in mind, the Oceanografía situation has had a strong impact on the market, creating a sense of uncertainty for all service providers and for PEMEX. It raises questions about all service providers and makes people ponder whether similar situations could arise with other companies, including Grupo Diavaz. It also creates a lack of confidence among the banks and sends a bad message to the international markets. How could a bank like Banamex lend US$400 million to a company with a CCC credit rating that was even withdrawn by credit rating agencies such as Standard & Poor’s? These issues will affect us all.
On the other hand, the cutback on players in the industry, specifically in the service segments related to our portfolio, will create more opportunities for our company. PEMEX will have to award the contracts for projects it had previously awarded to Oceanografía to other companies. This is an opportunity for Grupo Diavaz to grow and develop additional projects for PEMEX.
Q: How is Grupo Diavaz preparing to compete with foreign service providers that have pre-existing agreements with international oil companies coming to Mexico?
A: Our business model is based on creating alliances with companies that have state-of-the-art technology. This makes us a stronger competitor for the larger companies, even if they come to Mexico armed with their own lists of providers and allies. We believe that we could end up being one of the service providers of choice for the international companies, through our established partnerships. We are aiming to improve our security systems since this is one of the most relevant issues for potential partners. It will make Grupo Diavaz even more attractive to the international players that come into the market. Our quality will continue to be top-of-the-line, but we have to be aware that new institutions are going to come and regulate us. After 41 years of passing every test there is in the book, we will now have to prove ourselves once more with these new institutions and show international players what we are made of.