Mexico’s oil industry has been facing numerous challenges in the recent past owing partly to the sharp drop of oil prices. Consequently, the country is currently reorganizing and re-boosting the industry’s performance by reaching out to privately-owned oil companies. The revolution has been hardly noticeable, and at its center is an unlikely participant; Contemar.
Cotemar was founded 37 years ago with the aim of providing support services for Mexico’s oil industry. The company provides services in three categories. For starters, it provides maintenance, construction, engineering, and modernization services for oil companies’ drilling centers and machinery. It also provides specialized and maritime support vessels to ease navigation in the deep sea off Mexico’s coast. Finally, it provides accommodation and catering services for its client companies’ workers; its accommodation vessels feature facilities such as gyms, TV rooms, and basketball courts. Cotemar has been one of Mexico’s fastest growing oil companies, and the current revolution is further elevating its position in the competitive industry.
A Tumultuous Industry
Mexico is not as dependent on its oil resources as it was in the 90s. Nevertheless, the challenges affecting the industry have had a considerable negative impact on its revenues; the country was forced to slash spending by about $10 billion in 2016. Additionally, it was forced to provide up to $4.4 billion in financial aid to the state-owned oil company Pemex.
Pemex’s problems have posed a threat to Mexico’s financial wellbeing as the company pays for about a fifth of the government’s budget. As such, the government has been issuing tenders to private companies including Cotemar. However, Cotemar faces many obstacles in its journey ahead owing to the problems left behind in the wake of Pemex’s decline.
Perhaps the biggest challenge for Cotemar and other private oil companies in Mexico is infrastructure theft. These companies will likely be embroiled in legal battles fighting to regain ownership of these infrastructures. For instance, Pemex is already dealing with accusations of land grabbing and other related conflicts.
The issuance of tenders for deep-water exploration will also pose a problem for Cotemar as well as the government. There was no need of regulation in the past since Pemex was tasked with virtually every aspect of oil exploration and production. However, the involvement of Cotemar and other private companies will necessitate the formation of regulatory bodies. Regulation must also be coupled with other aspects such as taxation, oil production quotas, and royalties, among others. http://cotemar.com.mx/compania/filosofia-cotemar/