The Business Year

Oscar Scolari

Director General, Rengen Energy Solutions

James Buis

District Manager México, Nalco Champion

New exploration efforts and solid long-term policymaking will go a long way to helping Mexico develop at the pace it needs to.

What differentiates you from other companies that offer similar services?

OSCAR SCOLARI We are a company that started offering engineering solutions several years ago and eventually shifted to the representation of products and services. We service not only the oil and gas industry but the energy industry as well and have been a player in the oil and gas industry for over 40 years. These past five years have been a challenge, however; as the market started to change, the players also started to change, and the market became more sophisticated, pushing us to constantly expand the services we offer. A number of our clients wanted us to not only do the engineering but also integrate, install, and start their operations. For this reason, we also manufacture capital goods and products, and can handle the installation and fabrication of site construction. When it comes to downstream projects, we are active in petrochemical refineries, including its maintenance and the distribution of products. We are also proud of having been part of the first “Made in Mexico” pipeline for LPG that starts in Poza Rica and goes all the way to Tula. It is a private investment that was designed and built by Mexican companies, and Rengen Energy Solutions was part of the consortium that built the pipeline.

JAMES BUIS We have a unique way of doing business because we have many clients around the world. We have already dealt with a number of companies that are now entering Mexico. It is all about getting to know the customer and his or her problems, interests, and goals. We are going to ensure that we match the right people and teams with the right projects, because our end goal is to help clients achieve their goals. Our main role in the industry comes after production, when chemicals are needed. We are trying to get them to focus on efficiency and evaluating potential issues. Notably, Nalco Champion emphasizes prediction and prevention, helping its clients predict incoming issues before they occur. We specialize in ensuring that production advances smoothly without any interruption. Equally important, Nalco Champions can predict potential savings in terms of CAPEX and can even suggest equipment and sampling points to monitor certain issues. It may seem easy and simple, but we have a team of engineers dedicated to these projects.

Are you pursuing new strategies under the current administration?

OS Mexico is a country with the ninth largest oil reserves in the world, but we are becoming more and more dependent on foreign products and oil; this must change. I see the future of the oil industry, specifically downstream and refining, as having a huge increase in investment in the six existing refineries. These are lacking resources not for their modernization or capacity expansion, but also their maintenance. It is necessary to have backup capital. Mexico has the capacity to refine 1.4 million bpd, but only 40% of that is being used at present. The infrastructure is not only outdated but has not been maintained, so there is an urgent need to focus on maintenance. The president said Mexico will construct a new refinery. And indeed, we are more than ready, through associations and agreements with international companies and the experience of Mexican companies, to fully participate in new projects. When it comes to the production of gas, the Director General of PEMEX has stated that a major exploration effort is underway. Gas production in Mexico has steadily gone down because it was previously associated with oil production. However, there are many efforts to increase dry gas production at present, and gas fields in the north along the state of Tabasco and Campeche are extremely active. There is a lot of optimism in terms of finding new fields that can produce the natural gas the country needs in order to sustain the growth we are now experiencing.

JB A number of people were afraid of AMLO coming in, but while the new administration is different than the previous one and proposing some challenging ideas, I see it as more of a challenge and opportunity. They have a chance to fulfill the potential of the reform and make it productive for all players. The landscape is going to change, and Mexico is going to face projects with more challenging technical production; indeed, PEMEX has been able to do this singlehandedly for many years. Mexico is so abundant in resources that a single company or entity cannot invest fast enough. Therefore, the opening of the market is an opportunity for PEMEX to specialize on its strengths instead of getting involved in every project. The old strategy was costing PEMEX billions, but now it can let other companies do certain tasks. This will allow Mexican talent to develop at its full potential.



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