Interview with Iván Sandrea, CEO of Sierra Oil & Gas

[This is a sneak preview that can also be found in our mini-book. For more information on the industry and the insiders’ perspective, order our Mexico Oil & Gas Review 2017]

Q: What are the highlights of Sierra Oil & Gas’ upstream activities in the past year?

A: Sierra has become an important player in the offshore area. We consider it to be a major achievement because we have managed to become number one in terms of blocks assigned and net acreage. This has given us a level of maturity and recognition in Mexico and across the industry

Q: What are your thoughts about local content in the oil and gas industry?

A: It is hard to talk about local content in the exploration sector. Having only one shot to drill a well, investors want to make sure they have the security of working with the very best international and local companies using the latest technology and equipment. Local content is easier to implement in the production phase than the exploration phase, where activities are more repetitive. Having said this, we will exceed the local content required by the contracts by 15 percent. Sierra is aware of the harsh conditions local companies have been exposed to because of PEMEX’s budget. At the same time Mexico has become a very competitive environment. Sierra Oil & Gas and its partners ran a tender for environmental studies for Block 7 and 2, inviting local and international players but sadly, prices from local companies were three times higher than those from international companies. To solve this issue local content needs to be more proactive, ensuring it can compete both in quality and price against international companies and most importantly, make sure to promote itself because most companies are not aware of the multitude of service companies that are present in Mexico.

 

Industry insiders, including the heads of PEMEX’s divisions, will discuss these results and more at the Mexico Oil & Gas Summit on July 18-19. Click for tickets.

For more articles on Mexico’s oil and gas industry, check out our blog here.

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