OIL

Mexico 2019 | ENERGY | B2B

With major players smoothly leading the transition to a more efficient era in addition to gathering the best data, the opportunities for multilateral exploration and drilling projects are seemingly endless.

Jesús Lamas
JESÚS LAMAS
General Director for Mexico and Central America
Schlumberger
Hermes Aguirre
HERMES AGUIRRE
Country VP Mexico
Halliburton

How do you contribute to the sector's overall development?

JESÚS LAMAS Schlumberger has been active in Mexico for 82 years; we are an integral part of the country's oil and gas history. The company has brought new technologies and processes while employing and training local talent. As a player in Mexico's oil industry since the beginning, we have a substantial understanding of the area, both on the surface and in the subsurface. In the context of the fourth industrial revolution, Schlumberger's vision is to help the Mexican oil and gas industry smoothly transition into a more efficient era in which specialists spend more time making decisions concerning meaningful tasks, rather than performing repetitive activities that could easily be automated. This in turn translates to greater profitability, with better risk management over the E&P value chain giving more certainty with decision making processes derived from big data and AI.

HERMES AGUIRRE Halliburton has had a strong presence in Mexico for over 70 years and expanded its presence in Mexico through its business lines and technology offerings for onshore and offshore projects. The latter currently account for 80% of the country's production, which translates into a high demand for Halliburton's products and services. Moreover, exploration is another key activity in the country, and we work closely with operators to locate new reserves and produce them economically. Remarkably, Halliburton has participated in all the inland exploration and development programs with a major operator to help the company drive greater returns and maximize their asset value.

How are you improving your efficiency and expanding your services in Mexico?

JL We have executed the largest multi-client seismic project in the world using the latest technologies for both seismic acquisition and imaging tailored to address the geological and geophysical challenges in the Campeche basin. Better yet, our multi-client library is available for licensing to any company interested in investing in the country. This data, coupled with specific studies, has helped companies make informed decisions and has driven some of the largest investment of foreign companies in Mexico. We have also expanded our infrastructure. Recently, we opened a state-of-the-art facility in Villahermosa where we can maintain our entire technology portfolio and run most of our land, shallow-water, and deep-water operations. This is just one of our many facilities in Mexico. Our presence is also well established in Carmen, Veracruz, Poza Rica, and Reynosa, and we have satellite facilities in Dos Bocas and Tampico. With our network of facilities, we are able to support any upstream activity.

HA The combination of improving prices and higher levels of efficiency have allowed us to grow positively. Previously, the industry had suffered from the impact of low pricing, but we worked hard to reduce costs to soften the blow. In the process, we developed several global continuous improvement initiatives to increase efficiency and drive cost savings in our daily business. We also brought new ideas and technologies to customers that helped them optimize previously drilled wells and boost production in existing assets. The last four years have been challenging, but they have given us the opportunity to review our execution and how we work with customers. These initiatives throughout the organization were responsible for limiting expenses, recalibrating our focus on efficiency, and demonstrating our commitment to operators and their particular challenges. Overall, Halliburton views the Mexican market favorably and sees a tremendous commitment from the international oil companies and other operators across the E&P landscape. Big players such as integrated majors are continuously investing in the country and starting their exploration projects. One of the significant challenges in the region is reservoir recovery, which is driving greater investment into exploration to increase declining reserves. We are aware that these projects will play a key role in operations for the next four to five years. Moreover, these projects will demand high levels of technology, and we are prepared to offer these services.