Reviving a SouthEast GiantSun, 07/01/2018 - 15:32
Q: What impact does the state of Campeche have on the oil and gas industry, particularly for offshore operations?
A: Most of Mexico’s oil production comes from the Bay of Campeche, off the eastern coast of the Gulf of Mexico, from the fields of Cantarell and Ku-Maloob-Zaap. The production from that bay amounts to approximately 1.9 million b/d, which represents three-quarters of Mexico’s oil production. With these numbers, it is no wonder that the oil and gas industry accounts for 80 percent of Campeche’s economy, which is mainly confined to the oil and gas hub of Ciudad del Carmen.
Q: How is Campeche collaborating with the private sector and academia to encourage the industry’s development?
A: Despite the downturn the energy industry has experienced over the last couple of years, it will remain a major driver of economic prosperity and security in Campeche. With over 40 years of experience in the industry, Ciudad del Carmen remains Mexico’s oil and gas capital. We have been working very closely with the private sector and academia to make sure it stays this way. We are aware that with the Energy Reform new operators and service providers will come to Campeche and compete with local companies, and we want to be prepared. Having said that, we are confident that local suppliers have the experience and skills needed to compete with international companies. They will simply need to adapt to the new landscape and the challenges that will come with it.
The Energy Reform requires different minimum levels of local content depending on each contract phase and area. We are working closely with academia to align the qualifications of our graduates with the needs of the energy industry. The lack of English-speaking labor could become a barrier that inhibits locals from working in international companies. To prevent this from happening, we are implementing bilingual degrees in the public universitiesof Ciudad del Carmen, such as UTCAM. The private sector also plays an important role in developing human capital by creating training programs and using local workforce and service providers.
The government of Campeche also created the state’s Energy Agency, a decentralized public organism from the Ministry of Sustainable Energy Development with budgetary and operational autonomy. The Energy Agency will manage and promote the development of energy projects in a safe, reliable, profitable and sustainable way to generate new employment opportunities and welfare for the citizens of Campeche.
Q: What are the competitive advantages that make the state a strategic and stable entity for investment?
A: Ciudad del Carmen and the city of Campeche were in the Top 10 cities with the highest quality of life in Mexico, according to the 2014 national quality of life study carried out by the consultancy firm Mercer. The study evaluated 11 criteria: political and social environment, economic environment, labor market, socio-cultural environment, healthcare, schools and education, public and transport services, entertainment, consumer goods, housing and natural environment.
In terms of security, Campeche is proudly one of the most peaceful states in Mexico, according to a 2015 study carried out by the Institute for Economics and Peace, and has had the lowest crime rate in the country for the past five years. We understand the importance of safety and security, especially for international companies that come from developed economies and have higher standards in these areas. Among other factors, we have broad energy resources, a young and skilled labor force and a recently modernized and enlarged port, offering a wide supply of services for the oil industry and a privileged strategic location in the Campeche Sound, the country’s most important in terms of hydrocarbons reserves and production. Campeche has a lot to offer to international companies looking to expand their businesses into the southern region of the country.