VIEW FROM THE TOP
PIONEERING SCHEMES OPEN DATA TO PRIVATE COMPANIES OSCAR ROLDĂ N Head of CNIH
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Q: How is CNIH providing private companies with access to
created knowledge from the data we owned only for its own
the data it owns?
use, it would not improve the state of the industry as a whole.
A: Companies have access through one of two licensing schemes. The first applies to oil and gas operators. Through
That being said, while the first scheme is directed at operators
this scheme, operators have the right to use the information
for use in direct E&P activities, the second is directed at service
contained in each data package to study their areas of interest
companies focused on developing new business ideas that can
and to place their bids in the licensing rounds. The information
later be sold into the market. By allowing service companies
can also be used to improve a company’s performance in
to create products and services using our historic data, we are
E&P operations. The second scheme stipulates that data be
creating a market for information. This is extremely important
used for commercialization purposes that are not directly
considering the relevance in terms of optimizing production,
related to E&P operations. Rather, the data should bolster the
which is usually aided by smaller companies that are focused
development of new products and services that will support
on these kinds of services. A perfect example is the shale gas
operators’ activities and be sold on the open market.
boom in the US. Small service companies managed relevant data, created information and sold it to operators, who in turn
These two schemes are priced differently to incentivize the
used that to optimize their production without facing the risk
development of new business ideas. The second scheme
of venturing into the creation of knowledge by themselves,
offers the data at 2 percent of the cost of the first scheme.
which is not their core business.
If the data made available under the second scheme were to be sold at the same price as that for E&P operations, the
Q: How did CNIH arrive at the 30 percent royalty cost for
price would become a direct barrier for companies looking
the second scheme?
to innovate in the market. To ensure the country benefits
A: We implemented a project of well-log integration and set
from the value of the data provided under the second
a rate of return of 17 percent, which was then used to define
scheme at a lower price, there is a clause stipulating that if
the royalty rate. We are not yet sure how many products can
the data is successfully used for commercialization purposes
be developed from the information we own. We also cannot
then the company will pay a 30 percent royalty on the final
predict how profitable these products might become. Because
sale price to CNH. This approach is completely new in the
CNH is pioneering these schemes, there is no previous base
market, both domestically and internationally, making CNH a
to rely on or compare. The royalty may be high or low but we
pioneer. Essentially, we are opening the oil and gas industry
have to start somewhere. From there we will adapt according
while nationalizing the data, which is backed by Article 32
to market demand.
of the Hydrocarbons Law. This states that all the geological, geophysical, petrophysical, petrochemical and related data
Some may say that instead of a royalty on the final sale we
gathered by PEMEX throughout its history, or by any other
could have developed a production-sharing scheme. Doing
company in the past, present or future, belongs and will
that would mean CNH having to follow up the cost of each
belong to the nation, and CNIH will manage it accordingly.
individual product developed by the industry, therefore creating an administrative bottleneck that would end up
Q: Why has CNIH established two license schemes?
suppressing growth instead of promoting it.
A: Simply put, there was too much archival data for operators to digest and create the valuable analyses required to improve
It is worth mentioning that companies must register their
their knowledge and operations. We concluded that there
sales in Mexico for taxation purposes. To ensure this, CNH
had to be a way to analyze and digest the abundant data
will cross-check the sales information with that provided by
we owned, and then sell that knowledge as a final product
the Ministry of Finance. This will ensure that CNH receives its
that operators could use. We also noted that if an operator
proper royalty and also that taxes are paid in Mexico.