APRIL 1 TO MAY 19, 2020
STRATEGY + INNOVATION IS WHAT WILL ALWAYS TRANSFORM THE ENERGY INDUSTRY PRESENTED BY
OFFICIAL MEDIA
MEDIA PARTNERS
OPENING MESSAGE
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PARTICIPANTS Ricardo Ortega - General Director - Oil and Gas Alliance Javier Senderos - General Director - Petróleo & Energía Raúl Cedeño - Editorial Director - Petróleo & Energía Santiago Barcon - General Director- Energía Hoy Luis Prats - Commercial Director - Petroquimex The objective of the message by the specialized media in the energy sector is to invite the entire industry to join this initiative, which together has several key players in the energy sector, who want to show a very important issue in this situation. going through: union by the media specialized in this sector in this first Virtual Oil Expo, without a doubt, given this situation in which we find ourselves, Virtual Expo is an innovative method for the sector, which is the main engine of these means, to be able to generate conjuncture, ideas and conversation around what is happening. The Virtual Oil Expo is a new initiative within the sector, which has a digital focus in order to use technology as a means of uniting for the entire energy sector at the moment. This innovative initiative is for those who are interested in knowing more about the sector, being up-to-date and having a timely analysis of what is happening, which is why they call on the entire industry to join and ensure that activity in the sector does not stop, continue innovating and bringing new bets to Mexico. This sector cannot stop in a country like Mexico, since one of the main engines of this country is the energy industry. We all have to do our part to save this sector, companies and entrepreneurs have to trust this sector, since if there are going to be resources and you have to find the formulas on how to apply these resources in the best possible way. Despite the degree of concern that everyone is experiencing, the country will succeed, we have to reinvent ourselves, in the end these are opportunities that make us stronger. We have to get to work together, since we have come out ahead of worse circumstances. Those are difficult times that we are seeing in Mexico, but the energy sector is not going to stop and initiatives like these are what will continue to drive Mexico, we need to be all strengthened and united, without the support of each one of you this Virtual Expo would not be possible.
DIAVAZ BUSINESS TABLE
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Engineer Juan Escobedo Vielma Project Development Manager
Faced with the situation we are going through, Diavaz shares the actions it is developing. "Only the companies with financial backing are the ones that will suffer the least from this economic issue due to the deferment of payments and suspension of activities in the short and medium term", said Engineer Juan Escobedo. When this phase begins its resolution period, the tendency will be to recover normality, for which the government's impulse and support is required. "We are certain that the government will implement the necessary measures to meet the country's economic recovery objective, through Public Policies in support of private companies", said Engineer Juan Escobedo. Actions Diavaz is generating 1. In order to mitigate the impact of these events, Diavaz is taking the necessary actions for the maintenance of the business, with the greatest possible safety and health, so that business continuity is effective. They are working hand in hand with their clients, who have their own security protocols, which Diavaz also complies with, in addition to their own protocols. 2. They are attending to the projects they have in force with Petrรณleos Mexicanos, which has the main priority of sustaining and increasing oil production. Diavaz business opportunities Diavaz has become one of the most diversified and specialized business companies in Mexico that provides services through its 4 divisions: Diavaz Gas and Energy: Commercialization and supply of natural gas for domestic and industrial service: for the moment they are serving the areas of Monterrey, Puebla and Guadalajara.
DIAVAZ BUSINESS TABLE
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Diavaz Marine and Oil Services: Inspection, maintenance and modernization of oil platforms and offshore pipelines, through the corporate one they have in Ciudad del Carmen, and steam injection and compression services, with offices in Paraíso, Tab, and services to land wells with offices in Tampico, Tam. Diavaz Midstream:
Maintenance
of
the
Dos
Bocas
maritime terminal facilities and with offices in Paraíso, Tabasco. DEP Oil and Gas: Operation of Terrestrial Oil Fields. "We continue to maintain these business opportunities and we are also seeking to approach new operators to have a portfolio of projects, offering our experience and quality demonstrated for 47 years", said Engineer Juan Escobedo. Diavaz is looking for new projects and alliances to establish synergies and offer quality services to its clients, who are increasingly demanding in their requirements, especially in compliance with regulations and monitoring of international best practices. They also have a wide range of opportunities that they are developing, as they carry out prospecting, search for alliances to become a potential company and continue working in Mexico. To have contact with the commercial area of Diavaz, you can do so directly with Engineer Juan Escobedo Vielma, through the email jescobedo@diavaz.com or in the contact section of the website www.diavaz.com. As for the parameters to be a reliable supplier of this company, for Diavaz it is very important to have reliable suppliers, in order to be able to provide a quality service and keep its customers satisfied. “We must evaluate all suppliers, who cover technical capabilities, experience, financial solvency, quality, feasible delivery times and are open to being able to reach beneficial commercial agreements for both suppliers and Diavaz. We are open to any provider who wants to make contact with us",
stated Engineer Juan
Escobedo, thus closing the talk.
REPETITION www.expoilandgasmx.com/expo-virtual *Replays from virtual Business Tables are available on the Oil and Gas Alliance YouTube channel.
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STATISTICS
PANEL 2 - WEDNESDAY APRIL 8, 2020
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"FINANCIAL STRATEGIES TO FACE THE CRISIS THAT IS TO COME"
PARTICIPANTS Moderator: Lic. Atzayaelh Torres - Coeditor and Columnist - El Financiero Engineer Sergio Aceves Borbolla - General Director Diavaz Mtro. Rodolfo Rueda Ballesteros - Vice President Energy Comission of the International Chamber of Commerce
THEMES 1. What is currently happening in the oil industry? 2. What is causing this situation in the industry in Mexico? 3. What are the symptoms that we see in the industry? 4. What are the main factors and aspects that must be considered to keep moving in the midst of the uncertainty that exists? 5. What would be a positive scenario according to the information available according to the projections of the Ministry of Health and the OMS? 6. Will it be positive to seek to accelerate the energy sector as an anchor for an economic acceleration program? 7. Is 2020 given up? 8. What are the opportunities that can be found right now? 9. Specific recommendations for companies on what to do at this time of uncertainty
PANEL 2
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Oil demand has decreased dramatically in the first quarter of this year and after the outbreak of the pandemic, companies in the sector have had to analyze capital spending and the repurchase of shares. "We are in a conjunctural moment, not only for Mexico, but for the world sector, given the low oil prices and given the contingency derived from COVID-19”, said Master Rodolfo Rueda. "The health contingency has generated a severe impact, a total modification to demand and supply chains, that puts us in an unprecedented situation to which we have to react, it is a rather interesting challenge”, said Engineer Sergio Aceves. One of the impacts in the global sector is in the economic area, COVID-19 could cause the world economy to shrink by almost 0.9% during this 2020, instead of growing to 2.5% as originally planned. The effects are reduced by 3 points: 1. Production where supply chain disruptions are created 2. The market 3. The financial sector The main impact is uncertainty, it is very difficult to generate strategies to define what to do in this situation, since this uncertainty is based on how will the demand behave? how long will this drop in demand continue? And what will happen next? It will really be very complex. One of the basic characteristics of any investment is certainty, in this case the certainty is expected to be long-term. "We have to support the supply chains that are part of the industrial processes, which detonate the economy at a high level”, said Master Rodolfo Rueda. "Undoubtedly, energy is a basic supply, which is why it is impossible to put a brake on it, Petroleos Mexicanos is making every effort not to stop activities, which is why we service providers have to look for ways to have continuity in this business, assuming the demand for services”, said Engineer Sergio Aceves.
"The health contingency has generated a severe impact, a total modification to demand and supply chains, that puts us in an unprecedented situation to which we have to react, it is a rather interesting challenge” - Engineer Sergio Aceves.
All are carrying out different medium-term cash flow scenarios to seek to guarantee operations in the best possible way.
PANEL 2
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Despite the degradation of Mexico's sovereign note, we remain a country within the investment grade segment, this is quite a positive thing, there is strength, the energy sector is one of the most aggressive in investment, as has been demonstrated in the in recent years, accelerating investment and economic growth will be what will allow us to highlight many positive aspects. This industry can be a great generator of employment, labor and
opportunities
for
other
services,
so
the
federal
government will have to issue Public Policies to safeguard the execution capacities of the different production chains in order to pass this situation we have the strength to get back on the road. "This scenario will change and we must be prepared for what is to come, once the contingency is over, the investment plans are resumed with a certain aggressiveness and acceleration, so that we can conclude this year 2020 in a positive way for the Mexican economy, which translates into benefits for the population�, assured the Master Rodolfo Rueda. The only vision that we should have after this contingency is that both private initiative needs public administration and vice versa, since through this duality all projects can be developed, which will bring cheaper inputs and strengthen the Mexican economy. This 2020 may be a positive year in which Mexico is left with many lessons, since crises are opportunities, we cannot say that it is a lost year, we have to face everything with creativity and commitment, reflect and come out stronger. One of the greatest opportunities is that an analysis can be made within the National Energy Policy to see how the generation mix is. "We have to identify what part of the supply chains we can replace with national production�, said Engineer Sergio Aceves. In conclusion, we are in a sector where all investments are reflected in the long term, however, we can help the administration and regulators so that there is a stable legal framework, stabilize and provide investments in Mexico, ensure the continuity of operation and strengthen supply
COMPLETE PANEL www.expoilandgasmx.com/expo-virtual *Replays of the panels are available on our YouTube channel Oil and Gas Alliance.
chains. Let's remember that the energy transition is a reality and that at some point we will turn the page and we have to be prepared.
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PANEL STATISTICS
BUSINESS TABLE PORTS AND MERCHANT MARINE
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CHARACTERS RECOGNIZED IN THE PORT MARITIME SECTOR Master Claudia Sánchez Porras - General Director - Education and Training Trust for the personnel of the National Merchant Marine Dr. Luis Germán Ochoa - Director of Port Development Architect Constanza M. Suárez Jiménez General Director - API Puerto Vallarta Captain Francisco Javier García Jurado A. Deputy Director General - Maritime Safety and Protection
The actions taken by the General Coordination of Ports and Merchant Marine in the face of the COVID-19 situation and the way in which they are helping the national economy at this difficult time, is reflected in the fact that they are participating in the support with a regulatory improvement with the simplification of procedures, ensuring that even with the difficulty we are going through, they continue to strengthen and private investments are activated. "We have carried out various scenarios to support the personnel who work in the ports and in the merchant marine, as well as we have made different humanitarian bridges in various ports of the Pacific and the Atlantic, one of the main ones is the port of Puerto Vallarta", Dr. Luis Germán Ochoa explained. Action plan in the port of Puerto Vallarta to activate the transit of cruise passengers and their crews in the framework
of
the
COVID-19
pandemic
called
the
Humanitarian Logistics Bridge: Port - Airport. First port to attend humanitarian arrivals, in the month of March they carried out 8 humanitarian arrivals, of which they generated logistical humanitarian bridges to 1,065 passengers and 54 crew members, including 3 mexicans, this was undoubtedly a great challenge to generate a framework and a action plan that will guarantee the efficiency, effectiveness and safety of these transfers and aid to different vessels.
BUSINESS TABLE PORTS AND MERCHANT MARINE
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"Puerto Vallarta is the only 100% tourist port, for us it was very important to be able to help the cruise industry to repatriate its different passengers and crew to their cities of origin, which motivated us to put together an action plan for the ports that have requests for humanitarian arrivals, which was echoed by the federal authorities, since the main objective is to generate interinstitutional coordination to guarantee an efficient, effective and safe operation for the transfer of people in transit in the framework of the pandemic”, explained Architect Constanza Suárez. FIDENA services and educational offer for the energy sector Since FIDENA is the only Institution of higher studies of the merchant marine in Mexico, where its graduates are those who operate merchant ships dedicated to commercial maritime transport and passengers, today we are facing this situation FIDENA has the challenge of having a digital platform. "We have to strengthen all digital tools to capture more national and international market, Oil and Gas Alliance is a great example of what they are doing so that we can all continue it, these types of platforms are needed after this situation we are going through”, Commented Master Claudia Sánchez. As for the courses they offer for the energy sector, they have specialized courses: one is for the transport of dangerous goods by sea, which is endorsed by the OMI and the other is dynamic positioning for offshore and platform operations, in addition from survival courses, safety, medical care on board, training, evaluation and audit services to protection plans for port facilities in the areas and courses for fishermen. The challenges faced by FIDENA and the Merchant Marine are in the technical tools to strengthen the commitments that it has with the students, to strengthen the Merchant Marine since Mexico needs regulations that promote the Merchant Marine through fiscal incentives, which allow the national merchant fleet to be competitive with foreign fleets, in addition to efficient financing mechanisms which allow the development of shipyard companies in Mexico, strengthen international agreements, and achieve the updating of the curriculum of nautical
schools
so
that
seafarers
merchants
remain
competitive internationally, especially that regulations are integrated into all international practices so that they can be strengthened.
BUSINESS TABLE PORTS AND MERCHANT MARINE
PÁGINA | 12
As for port projects, there are many investors who are adapting the current port infrastructure to have hydrocarbon terminals, there are many opportunities and interest in mexican ports, however this crisis affects the supply and demand of fuel. Recommendations for the prevention of COVID-19 1. Provide access to docks and ports 2. Facilitate crew changes in all signatory countries 3. Facilitate port maneuvers 4. Guarantee health protection in ports Facing the imminent entry of this pandemic, not only to Mexico but worldwide, the effects have been countless, there have been losses and delays, in the maritime part a series of recommendations have been issued on the facilitation of maritime trade during the pandemic, the objective is to resolve global supply chain disruptions in support of people's wellbeing and health. "It has been considered that maritime transport will be essential to respond to this pandemic, guaranteeing the availability of maritime transport services for world trade, hundreds of seafarers, voluntarily or involuntarily, are on board the vessels on the front line of this situation and their lives and well-being are just as important as anyone else”, said Captain Francisco Javier García. According to OMI estimates, 90% of world trade is carried out by sea. The recognized figures in the port maritime sector closed by inviting companies in the energy sector that have entry to investment within mexican ports, to approach the API'S so that they
can
see
what
business
opportunities
exist,
since
generating bipartisan investment opportunities within ports, this will make it possible to start generating an increase in the national economy.
REPETITION www.expoilandgasmx.com/expo-virtual *Replays from virtual Business Tables are available on the Oil and Gas Alliance YouTube channel.
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STATISTICS
OUR SPONSORS
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We extend a heartfelt thanks to those who make the first Virtual Oil Expo in Mexico possible, who also join our #VaPorMĂŠxico campaign to move the Mexican oil industry forward.
Questions and comments
If you have any questions through our Twitter account @oilgasalliance, you can ask the panelists questions. Whenever possible, they will respond within 12 hours of the panel.
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