Diavaz through the eyes of Luis Vazquez

Diavaz through the eyes of Luis Vazquez

This week’s interview features Luis Vazquez, Diavaz Board Chairman of the Diavaz Group, which is a 100% Mexican company founded in 1973. This company is composed by business units focused on oil and gas exploration and production, marine operations and integrity of facilities created jointly through strategic and commercial alliances with leaders of the international energy sector.

Q: Diavaz has traditionally partnered with several foreign companies. What are you looking for in a partner and what do your partners get from you?

A: We have gathered with companies from all over the world. We would like to operate on the high seas and we are looking for a partner that has experience on it. We are also interested in the unconventional resource development. We want a partner with whom we can work and learn to produce in an accurate manner, using unconventional moves.

We are an internationally renowned company. International companies know that we are serious, we like to achieve things, and we like to learn. We offer them a thorough knowledge of Mexico. We have a large amount of data and have been working with PEMEX for 45 years. At one point, we partnered with CGG in seismic studies and we have geological information from that period.

Q: What has been your experience with the migration of your CIEP contracts?

A: The migration of our contracts should have taken place three years ago. The reasons given to us for delays include regulation, misplaced commas, and other minor details that may take weeks to resolve. Three years ago, there were 22 contracts eligible for migration. If those 22 [contracts] had been migrated two or three years ago, they would be producing around 100,000-120,000b / d of 20 wells. But just now, only two of 22 wells are producing under the new contract scheme, and those were migrated in early 2018, not three years ago.

We believe that the authorities are learning to be more flexible about regulations and to consider their purpose. When our migration process was delayed, we stopped investing. Three years ago, we produced about 12,000-13,000b / d of our Ebano field, and we currently produce 9,000b / d. We will not drill a single well before the migration ends because investing on it in advance is a big waste of money.

Q: Do you think that Diavaz will become a publicly traded company at some point?

A: I believe that our exploration and production branch, DEP Petroleo y Gas, could become a publicly traded company due to the funding required for these activities. As an operator in El Barcodon and El Catedral, the more money we deposit, the more money we will get. DEP Petroleo y Gas could become a public company in two or three years, most likely in the TSX, but we have not taken that decision yet. Our only reason for an IPO would be to have access to more stock. We need to find new financing ways to optimally develop the fields that we have.

Q: What would you include in your wish list for the next Mexican government?

A: I would request a review of the drilling permit approval system. In this way, the companies should not be required to wait a year to obtain a drilling permit. As far as I can see, the Energy Reform has progressed without being contaminated by corruption. Everything has gone very well; the only problem is the time that takes to obtain it [the permit].

Source : Oil And Gas Mexico