Can you tell us a little bit of Sproule’s history in Mexico?
Building on the momentum created by the Energy Reform, Sproule has been actively engaged in the Mexican market for a few years now. We’ve been pleased with our progress to date and are looking to continue our growth in the market, offering our reservoir-focused services of reserves certification, bid round/farm-out support, M&A due diligence and reservoir characterization, among many services we can offer. We opened an office in Mexico City in June 2018 with a local technical team.
What is the biggest challenge in doing business in Mexico right now?
The biggest challenge in Mexico is the uncertainty with respect to policy and what it might mean for the energy industry.
How have the recent changes in government affected you and how do you foresee things playing out over the next few months?
The recent changes haven’t immediately impacted us yet and they will ultimately affect us only insomuch as they affect the industry as a whole. The next few months will be important because the industry will want to see what the government will do with farm-outs.
There are a few Canadian companies in Mexico and the number is increasing – why is it?
I think the quality of the resource and established industry, in reasonably close proximity to Canada, is a draw. The Canadian industry is facing some challenges in recent years as well, so you may see more Canadian companies show up in Mexico if the climate is investor-friendly.
If you were to give one piece of advice to a company wanting to enter Mexico, what would you say?
Be prepared for more bureaucracy than you expect. Everything moves along, but you just have to be patient with it.
You are attending Mexico Assembly for the 4th time. Can you tell us, how important is Mexico Assembly is as a meeting platform for the industry and what are you most looking forward to in 2019?
The Mexico Assembly has been a critical component of our entry into the market. Connections we make at the events themselves and with your team’s help are invaluable. The panels, and the audience itself, is made up of key decision-makers within their respective companies, which creates meaningful discussions. In 2019 I’m most looking forward to gauging the sentiment of the group with respect to recent political changes and what they might hold in store for the industry in the short, medium and long term.
Jim Chisholm will be speaking on the FARM-OUTS, SWAPs, and M&A: SECONDARY E&P MARKET panel at the 2019 Mexico Energy Assembly
About Jim Chisholm:
Jim is Vice President of the Latin America region. He leads Sproule’s strategic direction in the Latin America region and is focused on driving top-line growth for the organization. Jim has extensive experience in the estimation of reserves and economics for oil and gas properties, acquisitions and divestitures, preparation of regulatory submissions, and evaluations of oil and gas companies.