In Search of Joint Ventures in New MarketWed, 01/20/2016 - 12:09
Oscar Suárez, Director General of DM Ingenieros, describes his business as a multifaceted company that offers a wide range of services, from outsourcing and supervision, to engineering development. The company is also developing a construction and infrastructure division, as part of a diversification strategy. In Suárez' view, consolidating the company’s presence in the Mexican oil and gas industry has been a difficult process. However, DM Ingenieros has a marketing strategy tailored to each industry, and the firm has identified areas of opportunity as well as limitations. In order to address these, DM Ingenieros seeks support from companies that can provide solutions to suit its needs. Suárez tells that the company’s engineering, technical assistance, and supervision activities decreased, which is precisely why DM Ingenieros decided to develop other areas of expertise. “At the moment, our focus is on the development of infrastructure, including exhaust cooling, pig traps, and separators. These separators are used to dislodge contaminating elements in the crude oil, such as water, gas, sulfuric acid, and oil.”
The engineering firm offers a variety of services for offshore applications. Suárez says DM Ingenieros provides infrastructure services and construction engineering, including design of interconnection lines and platforms. “The firm can handle the construction of an entire offshore infrastructure, and although we still lack certain experience in terms of exploration, we have seen that greatest area of opportunity in the submarine division in Mexico lies in drilling and production structures.” Currently, this type of platform burns large amounts of gas, meaning that great benefits could be derived from its sale, or from the generation of electricity. Another problem is the amount of operational wells that are not connected to the network. “Due to lack of government support, the underwater lines for crude oil required to carry this out have not been developed. Once new foreign companies begin entering the Mexican market, it will be more expensive, and more challenging for companies such as DM Ingenieros to compete,” he worries.
When it comes to constructing marine infrastructure, Suárez claims DM Ingenieros is a company that generates fewer costs for its customers than the competition. “It is difficult to find a company operating at the levels we do, at the same competitive cost. We are a company with promising development opportunities, with staff that has extensive industry experience, having worked in some of the largest companies in the sector,” he boats, adding that this knowledge has allowed DM Ingenieros to consolidate alliances with companies that have the financial and technical capacity to tackle larger challenges. Suárez says his company is ready to compete in rounds, but he is aware that the firm requires support to achieve its goals.
The quest to position a company as a reliable service provider often leads to pursue certifications. DM Ingenieros was awarded the ISO-9000 certification for engineering monitoring, which is divided across several branches, and the firm recently received certification for the infrastructure division, which in turn requires certification of the components within it. Suárez explains this by using the example of the company’s separators, which are subject to the ASME stamping certification, and this includes pressure vessels. “As we broaden our specialties, we must obtain new certifications, and our intention is to expand our areas where we are certified, which we have done with enthusiasm in recent years.” He adds that DM Ingenieros is in the process of obtaining certification for S stamping in reference to steam processes, as well as for P printing of piping. “This is a transition that leads from the technical management of a given project to its execution, and engineering and supervision play essential roles in implementation, meaning that they cannot be overlooked. These areas are complementary to our operations’ infrastructure, meaning they must be based on international standards, and there can be no doubt that, as new certifications arise, DM Ingenieros will strive to meet them.” Suárez asserts
Given the specifications of the contracts that PEMEX is issuing, mid-size companies are seeking to create alliances with multinational companies that have greater financial and technical capabilities. Suárez finds the contracts offered to be lucrative, but these often require billions of dollars, forcing companies such as DM Ingenieros to create alliances. “Added to this, the reluctance of financial institutions to provide credit plays an important role in creating strategic partnerships with international companies,” he highlights. In terms of the new criteria issued regarding local content, this could present a considerable opportunity for DM Ingenieros, especially when looking to work in partnership with foreign multinationals.