Between 28 and 30 November, the Mexican city of Villahermosa will play host to Oil & Gas Expo Procura 2018 (OGEP).
Featuring a major conference and exhibition, the event offers a great chance to gain insight into the country’s fast-changing oil and gas sector. Our team of Oil and Gas experts will be attending the event, making new contacts, furthering our understanding of this growing but complex market and offering our own experience of supply chain management in Latin America.
Rising oil prices alongside the opening of the market to foreign investment have turned Mexico into a land of opportunity for oil and gas operations. All activity in the sector used to be controlled by the state-owned company Petróleos Mexicanos (PEMEX), since 2013 the government has completely reformed the market. New domestic and foreign companies can now import and export oil and gas products and – crucially – tender for major exploration and processing projects.
As new ventures come to life, demand is increasing for a whole range of facilities and services, from drilling new wells through to the construction of pipelines and natural gas liquefaction plants.
A complex marketplace
There’s no doubt that Mexico is an exciting place to be at the moment and that’s bound to be reflected at OGEP 2018. However, alongside market liberalisation the Mexican government has set up a robust regulatory framework covering industrial and operational safety, environmental protection, risk management, insurance and more. More importantly, new legislation was introduced making any company criminally liable not only for its own activity, but for anything carried out in its name.
This means that alongside wonderful opportunities there can be significant risks for foreign companies investing in the country’s oil and gas sector, particularly when it comes to choosing partners and suppliers. Managing compliance, stability and the visibility of issues up and down the supply chain are important issues for any company seeking entry into the Mexican market.
Opportunities in compliance
We see compliance itself as a huge opportunity for companies large and small, no matter where they sit in the supply chain. Most oil and gas projects involve considerable investment and have a long lifespan. By making sure all its partners are compliant early on, a company can reduce procurement costs, lower the risk of fines and penalties, and benefit from greater long-term efficiencies.
Through Achilles Siclar, we offer a range of products to help companies find the right partners in Mexico’s onshore oil and gas market. Our community includes:
- 13 major buyers across Latin America – including PEMEX, PetroPeru and Frontera Energy
- 3,800 suppliers in the oil and gas market
Thanks to our audits, buyers can gain in-depth insight into the performance of potential partners and suppliers. Using Siclar’s pre-qualification tool, buyers can see a complete network of companies that offer the products and services needed and that meet their requirements in health and safety, sustainability and other compliance policies and processes.
In Latin America and around the world, we take the complexity out of procurement while helping companies build stronger relationships with their partners.
