VIEW FROM THE TOP
TEN YEARS CREATING VALUE LUIS VIELMA LOBO Director General of CBM
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Q: What steps has CBM, an upstream consultant, taken to
grow. We will translate this knowledge to projects related
remain competitive and attractive to potential customers?
to technology, reservoirs, transportation and storage.
A: We recognize three essential necessities to remain competitive in this industry: technical knowledge, local and
Q: How do you help PEMEX create value and better
international experience and the quality of our people. We
implement its strategy given the changes at the company?
are invested in preparing our human capital to stretch their
A: Understanding the scope and impact of these
knowledge and skills and to make this skillset sustainable.
changes has probably been the hardest lesson PEMEX
As a company, we foster the exchange of expertise between
had to learn. The Energy Reform itself was a milestone
our experienced staff and the new entrants coming into
in the modernization of the country that went beyond
the company so they can combine their mutual strengths.
PEMEX’s vision of a market that it insufficiently served;
We also keep abreast of the most recent technological
it was in desperate need of transformation. This idea of
developments and their different applications. We strive to
regeneration shook the NOC to its core, it transformed the
be cost-efficient and price competitive amid such a volatile
mindsets of those in control and modified the arrogant
market. We look at our balance sheets on a constant basis
flare resulting from its monopoly status. Looking back 10
to avoid sacrificing our profits and losing competitiveness
years, this was the main challenge CBM had to overcome
in the market. Finally, we also deem operational efficiency
when we started doing business with the NOC. The new
key to surviving in this market, and this is something we
people in charge have a better understanding of where
repeatedly tell our customers so they focus on the aspects
PEMEX needs to go but I also hope to see a long-term
that are adding value to their companies.
vision from the government. This vision is modified every six years when a new government is elected and this is
Q: How does CBM’s venture into project management
harmful for the country.
strengthen your clients’ expertise? A: Our leading source of projects in this field comes from
Q: What are the requirements for PEMEX to complete its
our long-standing partnership with PEMEX, which spans the
ambitious upstream and farmout plans?
last 10 years. We have an ongoing dialogue with the NOC
A: First, it is important to envision what kind of company
on how to understand and apply the concept of project
PEMEX wants to become and then design a well-structured
management to developments that go beyond construction
plan to handle its upcoming projects. The farmouts PEMEX is
and EPC contracts, where it has vast experience but yet it
trying to implement require the establishment of completely
outsources most of the project management. In the past
different relationships with a series of companies. If the
year, we have worked with PEMEX on how to employ a
NOC signs 100 farmouts, the company will need to form
project management approach to any big project and to
100 different relationships. This is a gargantuan task given
increase its profitability and its learning curve by carrying
PEMEX’s current status. In theory, the company would have
out its own projects in the future.
to split in two to service its own portfolio and the 400-plus assignments it decided to take over in the rounds, while
The first project management processes we employed
the other half would deal with all these farmouts and the
with PEMEX were in the farmout arena where it wants to
relationships that result. Furthermore, there are many things PEMEX has to put on the discussion table along with CNH, the Ministry of Finance and the Ministry of Energy. There
CBM is a Mexico-based oil and gas upstream consultant. The
are questions to address, such as how to coordinate these
firm offers strategic advice to the sector, including how to
farmouts, the definition of majority shareholders, financing
improve well production and business-model design in the
sources and so on. It is certainly doable but there are many
Mexican market
factors to take into account to make it successful.
