This week’s interview of the week is with Paolo Gaffuri, Country Head of Pietro Fiorentini. We discussed the company’s design and construction of its Villahermosa’s multiphase flow meters plant, among other pressing industry matters. Pietro Fiorentini is a global leader in the creation of products and technology for natural gas regulation, distribution of oil and gas and gas conditioning.

 

Q: What were Pietro Fiorentini’s considerations when building its Villahermosa’s multiphase flow meters plant?

A: Our Villahermosa facility includes offices, warehouse, workshop used for our multiphase flow meters. We are focus in providing services, with our own assets, in the multiphase metering business. Mexico is an important growing market: PEMEX and new operators will increase aggregate oil and gas production over time, requiring multiphase flow metering services, fiscal metering installations and gas treatment facilities to comply with CNH requirements. We want to be close to our customers, according to our strategical local for local approach and therefore we selected Mexico as a key country for directly providing our products and services since 2013. We chose to set up in Villahermosa to be close to our customers and their operations, and will expand to Ciudad del Carmen to address offshore operations and to northeast Mexico to address Burgos, Chicontepec and other offshore opportunities

Q: What particular aspects of Mexico’s oil and gas industry make it attractive for the services Pietro Fiorentini provides?

A: We started providing services in multiphase metering because PEMEX’s business model focused on attracting this particular service, but there are several key aspects of Mexico’s oil and gas industry, that make attractive this market, including the proved Mexico oil and gas reserves, Mexico’s energy reform that has brought in several dozen new operators that will invest several billion dollars in exploration, development and production initiatives, the anticipation that Mexico’s aggregate production will increase substantially over time, and need to accurately measure oil & gas production. Additionally, Mexico is an open and stable economy with modern regulations that allow foreign investment, fair taxation and low tariffs. Pietro Fiorentini continues designing, developing, patenting and manufacturing proprietary multiphase flow meter, allowing to offer integrated services and reliable measurements using our own state-of-the-art meters. In this way, our clients benefit of having one single point of responsibility, dealing directly with the technology owner. In 2015, the market dropped dramatically but we see other opportunities in the near future to provide fiscal metering devices and services, and in natural gas treatment and power generation sectors, were we can offer fuel treatment, fiscal metering, natural gas metering and regulation system packages. We are also developing a suite of new tools for enhanced oil recovery, mature fields and exploration, which we look forward to introducing in the Mexican E&P sector.

Q: How did Pietro Fiorentini set a foothold in Mexico’s fiscal metering niche?

A: Pietro Fiorentini set a foothold in Mexico’s fiscal metering niche by having preferred access to leading-edge, precise, technology, experienced in-house engineering and design capability, significant experience and references, and the financial means to design, manufacture, build and install fiscal meters where necessary.  We have supplied fiscal metering packages to major oil and gas companies around the world, such as ENI, Saudi Aramco, Qatar Petroleum and Shell.

Q: What differentiators are key when designing a multiphase meter?

A: The key differentiators when designing multiphase flow meters include having advanced physics and engineering capabilities in-house, dedicated manufacturing and testing facilities, advanced manufacturing and testing equipment, very high standards and procedures, continuous product improvement systems, collaboration with the best international R&D companies and Universities for specific technical know-how, understanding of the market and operators’ needs, funding and knowledgeable management.  The key differentiators when offering multiphase flow metering services to operators are offering low-cost, reliable measurements, on time by having best-in-class, third party, certified multiphase flow meters, different sizes and configuration of multiphase flow meters, highly trained and dedicated technical personnel and operators, and seamless communications between the factory, the technicians and the field. There are many multiphase flow meters offered in the E&P sector, they all have technical pros and cons. Multiphase flow meters are, by definition, highly technical and advanced devices, requiring qualified and dedicated personnel to operate them effectively, guaranteeing high availability. In Mexico, we own the technology, advanced sensor calibration equipment, and spare parts. We also have factory trained personnel on hand. Other companies offer multiphase flow metering services with third party equipment and they don’t own the technology. Multiphase metering technology evolves continuously. Newcomers are entering the sector, motivating us to continue investing in product R&D, development and innovation and further improving our field services.

Q: How does Pietro Fiorentini address local content provisions in its products and services?

A: Pietro Fiorentini can boast considerable longevity in the market as it was established in 1938. Our default market insertion approach stipulates sending a management team to incorporate best practices into a particular new market to be sure that the standards and the DNA of the company is established locally and up to par with its international counterparts. In this manner we comply with our local-for-local rule, in which we empower national professionals by gradually inserting them in the management of our day-to-day operations. It is a natural part of any of our local organization’s growth curve. Failing to invest in a qualified and proficient local team will jeopardize your long-term growth.

Q: Looking at Mexico’s oil and gas market as a whole, what are your priorities?

A: We have different approaches for each sector. In the upstream sector, we are managing the business directly, while for downstream’s low-pressure natural gas, we mainly operate through distributors selling and promoting our pressure regulators. In the particular case of Mexico, we are focused on the upstream sector while continuously evaluating the natural gas distribution segment and increasing our presence in this niche. We are in talks with CENAGAS and companies involved in natural gas distribution where we can supply our services, such as odorization systems and cathodic protection, which are Pietro Fiorentini’s core strengths in this niche.

Q: What trends have you detected in reservoir management in Mexico?

A: Pietro Fiorentini has detected a couple trends in reservoir management in Mexico. First, PEMEX Exploracion y Produccion is requiring more accurate measurements more often in order to better understand reservoir performance and be able to introduce measurement results into their production models. Second, clients are asking for increasingly integrated services for well monitoring, management and testing, well beyond multiphase meters. We are moving in the direction of offering more integrated services to our operator clients.

 

This is an excerpt from the 2018 edition of Mexico Oil and Gas Review. If you want to get all the information, plus other relevant insights regarding this industry, pre-order your copy Mexico Oil and Gas  Review or access our digital copy.

Don’t miss out on your chance to rub shoulders with the industry’s leaders at the launch of the new edition of Mexico Oil and Gas Review at Mexico Oil and Gas Summit 2019, at the Sheraton Maria Isabel Hotel in Mexico City this July 17 – 18! Register here!

 
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