Three decades! Yes, 30 years without growth in refining infrastructure where we have had an internal demand for oil that increases at an annual rate of 2.9%, which proposes a national production of gasoline and diesel, that is why the approach is a refinery to guarantee the permanent efficient, timely and sustainable supply of oil.
The Political, Ideological and Geographic context.
Seven months after starting his government, President López Obrador, gave green light to what could be the iconic project of his government, despite the different situations that are experienced in all the areas involver, it is a requirement to integrate the context in which I write the key points for business development around the Dos Bocas Refinery.
I present these contexts with the purpose of justifying the vision and introducing you to the more neutral context, with the objective that you consider investing in this opportunity and be part of what is happening despite any comment in favor or against this project.
For all of us who have spent time in the energy sector in Mexico, it has become clear that this is definitely the current scenario where all companies what decide to stay in this sector will be required to seek and generate business opportunities.
Political Context
I have heard many versions of the possible political positions but none like the one we currently live to perceive that we are very far from the reality of just a year ago.
From the perspective of the majority of those who form the oil and gas sector, the leaders of the political sphere are mostly new members in mexican politics, which has proved difficult for private industry to find meeting points according to the previous ones interests, which has generated learning at the rate of understanding the political context.
What is extremely positive of political context is the opportunity discourse, «where opportunities are latent for those who remain with the firm commitment to add and learn hand in hand with the new rules of mexican politics»
Now it is more difficult to think that we are facing the opportunity to do business in the dark, companies must integrate due diligence to know with those who become allies previously to work with the political class that pays close attention to the past of companies and your relationship with third parties.
Ideological context
Everyone wants business!, but also the certainty that the risk of this business is at minimum, the appetite to invest is highly linked to the risk of losing the investment in the face of the news around the sector.
The affectation of the cancellation of the new airport and the different changes of course on the investment plans have greatly diminished the integration of players with risk appetite and return of their investments, and effect that has allowed a growing industrial class of opposition to announce a strong recession that sets in motion the creativity and disruption of those who decided to stay in search of business opportunities.
Competition is at its most complex and maintaining requires an ability to read the opportunities that are integrated under the ideological context of risk and constant change, with that high financial capacity of the size of the claims.
While some want everything to be as before, there are those who take advantage of the change to adapt to this new ideological context and those who managed to read these opportunities and are already being part of them
Geographical Context
In the geographical context there is no doubt that the southeast has a great influence, however the reference is the following projects:
Development of the Isthmus region through a freight rail and fiscal facilities for the installation of companies.
• Construction of the mayan train with the Cancun-Tulum-Bacalar-Calakmul-Tenosique-Palenque route.
• Building of rural roads with intensive use of labor, especially in Oaxaca.
• Expansion of internet coverage throughout the country.
• Reconstruction of damaged buildings after the earthquakes of september 2017
•Urban development in marginalized colonies, including those located in the Mexican municipalities of Chimalhuacán, Chalco, Valle de Chalco and Ecatepec.
•Opening of 100 public universities in marginalized areas.
• Construction of a refinery in Dos Bocas, Paraíso, Tabasco.
• Development of electricity infrastructure and alternative energy with the impulse of CFE.
• Free medical care and medications for the entire population.
• Definition of the future of the New Mexico International Airport.
For its part, Petróleos Mexicanos presented its business plan where it shows its risk appetite, betting on recovering the national industry with its own learning curve by those who now direct PEMEX, something that is part of any change of sexennium with their own contexts.
In reference, the PEMEX Plan is a direct reference to what Dos Bocas refinery proposes, being now the leading player.
That is why, based on the analysis, I present 4 key points for the business development around the Dos Bocas refinery to which the productive chains will be able to participate, if they are ready for it,
Key points 1
1.- Meet the winners of the refinery, it will not only be the decision of the national companies to provide business opportunities.
Foreign companies have different national standards, which is why I share who they are:
Flour Enterprises, Inc.
ICA Flour Daniel S. De R.L. De C.V.
A company that its developed in energy, electricity, infrastructure, oil and gas, and mining and metals sectors.
ICA-Fluor Daniel, S. de R.L. de C.V. (ICA Fluor) is a joint venture formed by the Mexican construction and engineering group ICA and the US engineering, procurement, construction and maintenance firm Fluor Corp. Its areas of operation include land roads, ports and maritime works, airports, water, energy, underground works, mass transportation, social construction, industry, oil and gas, mining, real estate development and prefabrication.
ICA Fluor currently carries out remodeling works at the Miguel Hidalgo refinery, located in the state of Hidalgo, which will produce 173,000b/d of ultra low sulfur gasoline, 104,000b/d of diesel and 21,000/d of kerosene. The company is also in charge of the Los Ramones II Sur gas pipeline project, a section that connects the states of San Luis Potosí and Guanajuato, in northern Mexico. The 291km line would dispatch 39.6Mm3/d when finished. *
Samsung Engineering, Co, Ltd.
The engineering and construction company that was developed as a contractor for Petróleos Mexicanos in 2014 announced a contract for 552 million dollars for the second phase of the modernization of the Salamanca refinery. Established in Mexico 2004, the tenders launched by PEMEX in Mexico are seen again, since then PEMEX has been its most important client with engineering projects. *
Kellogg Brown & Root, LLC.
KBR is an engineering, procurement and construction company based in Houston that serves the hydrocarbon industry. It operates through three business areas: technology and consulting, engineering and construction, and government services. KBR was formed in 1998 after M.W. Kellogg and Brown & Root Engineering and Construction will combine their operations. Currently, it has a presence in more than 70 countries, including offices in Monterrey, Mexico and Rio de Janeiro, Brazil. KBR participates in the installation of the Puerto Nutrias, Morón and José ammonia plants in Venezuela and the Barracuda and Caratinga FPSO in the Campos de Brasil basin, as well as in the design and basic engineering of the Rio Grande ammonia plant in Argentina.
Key points 2
2.- Mexican companies in their role as contractors.
Integrated in alliance with foreign companies, Mexican companies will play an important role not only because they will have freedom in their operations but also because they will be subject to the planning and technical support processes of engineering and construction companies with extensive experience in project construction of refining.
The companies are:
Asociados Constructores DBNR, S.A. de C.V.
Constructora Hostotipaquillo, S.A. de C.V.
Mexicana de Recipientes a Presión, S.A. de C.V.
These companies are already in Villahermosa Tabasco, with a wide and opportunity to meet the interests of bonding and service to suppliers.
The recommendation will be to integrate complete business proposals, where your services are at hand but also that of your allies, in this sense I recommend being part of a group of companies that deliver complete solutions, you must also consider what companies have been waiting for years an opportunity to return to the sector or take time without billing what the cost war will be the order of the day.
Key points 3
3.- The assigned packages represent an abundant portfolio
With percentages greater than 50% of national integration the amount of the 6 packages exceeds 7,000,000,000.00 dollars, so that each possible supplier can identify in which package to participate and with which company to present their competitive advantages.
Package 1
Combined
Conqueror
Package 2
HDS diesel UBA 1 & 2
HDS diesel fue
HDS Naftas 1 & 2
Reformers
Package 3
Catalytic Disintegration, FCC
Isomerization of butanes
Isomerizer pentanes and hexanes
Alkylation
Package 4
Bitter waters
Regenerators of amines
Treatment of gas
Recovery of sulfur
Hydrogen plant
Package 5
Product storage and handling
Package 6
Services and integration
Identifying the integration capacity according to the integrated packages will be extremely important for those companies that wish to be part of the value chain.
Key points 4
4.- The national workforce and the Project Program.
The training of the workforce and the services around the training as well as the temporality of integrating and offering the services of all the companies involved will undoubtedly be a vast opportunity for all those companies that decide to integrate in the southeast.
2019 will present the beginning of all the phases in which the refinery is considered, where 2020 the procurement of the equipment will be consolidated, there is no doubt about the next months before the end of the year the rebound in investment or investment intentions They will be visible to the state of Tabasco.
Now that the Refinery in Tabasco is assigned and will begin its process of conditioning and construction, private industry and the national energy club prepares engines to integrate into business opportunities.
I am sure that in the coming months it will be more intense but at the same time more real the development of these opportunities that benefit the companies that are hoping to improve their billing goals.
As a group, Oil and Gas Alliance will closely follow these opportunities and participate in the context of integrating its Members and allies to them.
*https://www.bnamericas.com/es/perfil-empresa/ica-fluor-s-de-rl-de-cv
*https://archivo.eluniversal.com.mx/finanzas/74766.html
* https://oilandgasmagazine.com.mx/2015/12/samsung-engineering-gana-contrato-de-pemex-para-modernizacion-de-refineria/
*https://www.bnamericas.com/es/perfil-empresa/kbr-inc-kbr
About the author
Ricardo Ortega López
CEO of Oil and Gas Alliance, group focused on business development in the Energy Sector. He is an Industrial Marketing Engineer with 13 years of experience in the energy sector.
@EnMerka
@oilgasalliance
www.oilandgasalliance.com
