UP AND DOWN EVERY STREAM

Mexico 2019 | ENERGY | INTERVIEW

The best firms enter and benefit markets through a combination of speed, efficiency, and accountability.

Michelangelo Tortorella
BIOGRAPHY
Michelangelo Tortorella started his career at the Western Geophysical Company in the field of geophysical exploration for oil-related research. He was eventually in charge of managing the acquisition groups in the Mediterranean. He is currently the CEO of DG Engineering Management, a company supplying engineering procurement and management construction services to the major oil companies around the word. He is also serving as a board member of Assomineraria, a role he has had for the past 10 years.

Why did DG Impianti decide to enter the Mexican oil and gas market when it did?

DG Impianti decided to enter the Mexican market as part of its international business development strategy. For many years, the Mexican industry had closed its doors to private sector research, exploration, and production of hydrocarbons. The state later gave foreign companies an opportunity to enter the market. We consider this to be important, as it demonstrates many areas of opportunities. Mexico has great potential in the production of oil and gas and has favorable political and environmental conditions, in addition to its excellent diplomatic relations with Italy. We are committed to investing in the long term, which means investing in our people and their knowledge and capital. We see human capital as an indispensable and fundamental part of our work. That is why wherever we operate, we commit to acting with respect, honesty, and integrity. When we enter new countries, we do it not only to develop our capabilities, but also to develop the country and locals' capabilities and combine and integrate our capabilities with the ones of the country we are working in. In Mexico, we want to enrich ourselves as well as the country, which is possible only if we expand within it. We believe that in Mexico—as well as other countries such as Kazakhstan, the UAE, and the Congo—we can set up a system that can be perfectly integrated into the local system.

What strategies is DG Impianti using in Italy and abroad to mitigate the risks of oil prices dropping?

As a result of the company's skills and the experience it has built up over its 52-year history, DG has been able to tackle this uncertainty. All oil companies have had to deal with a fall in the price per barrel from USD140-130 to USD50 and thus review their strategies. DG has also developed a strategy to reduce the time to market from exploration to production. This required an optimization of the systems, an impeccable organization and management, and a reassessment of the production processes within DG, from engineering to procurement, logistics, and construction. DG stressed the importance of valuing the strengths and growth potential and capabilities of its personnel with the final aim of developing its projects more rapidly and accelerating processes while still maintaining the same quality and safety.

What added value does DG offer its partners in Mexico?

Our greatest added value is our ability to provide services in efficiency and accountability for a wide range of processes. This translates into greater strength in all phases of the process—engineering, procurement, and construction—and an acceleration of all aspects that contribute to the realization of a project. What we offer is speed, efficiency, and accountability. Over its 50-year history, DG has had the opportunity to completely settle into the oil market, from onshore to the offshore sector and from the moment of exploration to production. DG perfectly understands the development of the oil industry, including the structure and operational logistics. We have an extremely well-developed multidisciplinary engineering capacity of developing both offshore platforms and its processes. This same know-how can be used for both on and offshore projects. An extremely strong core in the sector of project management services that allows us to manage the whole project—from engineering to procurement and logistics until construction—is of great value here.

What type of projects are you collaborating with in Mexico?

We are currently engaged in a fast-track and important project with one of the most important oil companies in the world. Our client has an ambitious project, and we have been able to supply an excellent service. They sought to set up a plant to treat oil, its first project realized in Mexico, within a challenging time frame of 12 months.