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Zachary Houle

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Taking care of business; private companies in the wake of an oil revolution in Mexico

 

There’s been talk that some smaller private companies (i.e. Petroleum, Sierra Oil, Diarqco, Nuvoil, Renaissance Oil, and Cotemar) will be jumping on the renewed energy bandwagon in Mexico at any time now. Working for a successful private oil company is a dream for most people in the industry. At least this is what it should be like for those working on a governmental oil rig(s). On the CNN affiliate news website Expansión, some things never rest.

 

The feature article entitled “The Silent Revolution” which was written a couple of months ago (Nov. 2016) and focused on the success of some private companies receiving tenders in the wake of some of the industry’s “bigger fish.” The governmental oil exploration contract that will brighten the economy of Mexico is taking place in the Trion Field.

 

In fact, the Mexican company, Cotemar, specializes in offshore construction, petroleum and maritime services, offshore maintenance, and specialized shipping. For more than 37 years, the company has managed to maintain a great repertoire with the proud dedication and commitment to the oil industry, especially their employees.

 

More expansion; companies facing challenges

It’s going to take a tough solid company to go in and continue the offshore “rough terrain” that certain companies have to follow. Cutting through, hurdling critics, and simply just wanting to work offshore to make a living doesn’t come smooth in the oil construction and maintenance industry. Facing years of potential work ahead, is the first of several challenges any company in a competitive industry will have to face. It’s business, yet, keeping the company within the legalities of it is like wrestling in the ring with no referees at times.

 

This term in governmental contracts state “with good faith” in many submittals in technical proposals when bidding for a contract. It’s good faith that joint ventures work honestly together, regardless of critics. Obviously, private companies such as the ones that are involved with such a prosperous oil contract ahead.

 

Following the legal side of things; the industry

With that being said, the oil industry needs more than one offshore oil company to work the Trion Field according to the Expansion’s article “The Silent Revolution” and other sources published (see below, sources) this last quarter of 2016.

Pemex is currently the second largest government owned oil company with eyes on oil assets in the country of Mexico’s offshore drilling and oil exploration. Yet, others are in the ring as well. Since the demand is high and the horizon looks bright for future oil drilling and exploration, it’s not surprising. This happens all the time in the U.S., China, Africa,…and other countries; yet, when there’s a revolution that is silent, violent things can occur.

 

This is why it’s normally “hush-hush” since races are about to begin. But, this time it’s seems to be okay since there’s a lot at stake here. With those private companies getting through the first hurdle of simply bidding on these contracts, and getting the tenders, they know what’s expected when it comes to the offshore oil fields. As long as their proposals are factual with the manpower and having past performance and experience, along with certifications, insurance bonds,…etc., everything should go smoothly.

 

This is what makes for a fine government bidding competition and since it was recently said that the government did release tenders to private companies who must of won some bids in the oil exploration comp already, the work proceeds in the regulated terrain anyway.

 

In fact, oil regulator from Mexico did announce that Pemex has to take “a minimum 45% stake in its first-ever proposed joint venture.” This is to produce oil reserves in the Mexican region of the Gulf of Mexico. This statement was reported by Reuters, Mexico’s National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos). Compared to a “concession,”, being in a license contract, two operators have to have a stake in the proposed project. (That is within 30 to 45% of it for the other contractor.)

 

Therefore, the main challenge lands on the land bouts, various critics, and a hungry oil demand, so all in all, companies need to play nice. It’s business as usual, with oil tycoons like Pemex, there’s room for more oil exploration, production, and naturally, contractors, private or not.

 

Commitment to the oil crews

One main emphasis Cotemar places within the industry is the commitment they have with their employees. Without a good employer/employee relationship, Cotemar would not be so successful. After all, without the commitment of “crews”, how will a successful offshore and maritime company get things done. In fact, within the chain-of-command, employment with Cotemar is substantially a great, all-around company to work for.

The maintenance and construction services in the oil industry does not come without the oil field crews. When it comes to their personnel, they regard them as priceless, as do their contracts. The operational support of the maritime industry is only a small portion of their dedication to the oil field offshore.

 

Furthermore, they have illustrated this through their commitment to their staff and the people that work for them. With more than three decades of that continued support, they handle their employees’ food, lodging, and transportation needs while working under contract with the Mexican company. Also, included are the continued support for their personnel’s material necessities and ensuring their needs are met when it comes to their cost of living. With this comes the constant professional training and continuous work offshore or any petroleum and maritime employment services that are readily available to the company when under contract. In fact, as Cotemar comes in simply to work, it’ll also be good for Mexico’s economy. Rough or not, the oil industry has seen better days elsewhere, so this shouldn’t be anything to worry about only that two oil giants need to work and explore. Similarly, joint venture contracts like this that take place in other countries, such as the U.S. have seen this before hundreds of times. Although, since it’s Mexico, a lot of untouched territory can get some palms sweating. The critic buzz is high, yet so is the demand of oil reserves.

 

This would be considered a great thing if the proposed goals are worked out smoothly; in other words, everyone needs to just do their job. With this in mind, the “trauma” which cost 1M barrels daily from one other company, that also “reduced” an exhaustive company as well, will surpass. (Every company learns the hard way.)

 

Competition and partnering seem to be two opposite elements

Certain accounts need to be cleared before going into the deep ends of the water. Although, what really matters is everyone coming to the field with a clean slate to get work going, or exploring. Plus, with resolutions that need to be resolved for some, the best way to deal with sharing a contract, or Trion field, is to keep their eyes on the prize. “The Trion field holds some 480 MMbbls and will require about $11 billion worth of investment. The field covers about 483 sq. mi (1,250 sq. km) and is located under more than 8,202 ft. (2,500 m) of water.” Source: )

 

Success is consistent

Finally, with some loose ends currently being tightened, these new companies must face the wake of some giants that have silently awaken in the midst of a new year. At the same time, Pemex must learn to joint venture with others, and through the deep waters of the coasts of Mexico if opportunity rises. At the same time, they need to remember that these other small oil companies can be considered the bait for some even more larger fish in the waters that may want a stake at it too.

 

It’s best to remember that if there’s too many sharks treading the wakes, everyone feels the ripple effects. Therefore, when the real drilling begins and there’s the crude does get produced, Mexico’s oil reserves will become more prosperous, and so will all the men and their livelihoods. Because without those oil rig crews, there’s not any production. Nevertheless, the positive growth potential with all the oil boom that quietly awaits to be explored will enhance the Mexican economy regardless.

 

Source: http://www.offshore-mag.com/articles/2016/08/mexico-oil-regulator-announces-terms-for-deepwater-trion-field.html

http://expansion.mx/empresas/2016/11/02/la-revolucion-silenciosa-del-petroleo-en-mexico

 

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