with Dominique Uzu, General Manager, CGGVeritas Land (U.S.) Inc. Sucursal del Perú
The Peruvian oil and gas market has undergone major transformations in the last couple of decades. After many ups and downs, it now offers a more open environment with an increasing number of private oil and gas companies exploring and producing. How has CGGVeritas responded to such changes throughout this time?
CGGVeritas has operated in Peru almost continually since the 1970s. In 2007, we became more active in the Peruvian market. I have been part of this effort and now run our local operations.
Since those early days, the projects we conducted in Peru have been highly complex and technologically challenging. Last year the company completed a 3D project in a very remote area on the border with Ecuador, close to the Andes. We are currently conducting a project which is considered to be one of the largest 3D seismic surveys ever performed in the Southern jungle. It’s located in block 58 in the vicinity of Camisea where we shot 780 sq km of data a few years ago and Pagoreni where we shot 363 sq km.
According to your local competitors, in only two years CGGVeritas has become the biggest seismic provider of the Peruvian market. How do you explain such a meteoric success?
CGGVeritas is the world’s leading seismic company and, in terms of investment, is indeed the number one seismic company in the Peruvian market. CGGVeritas met local market conditions by ensuring it remains cost-competitive while bringing the advantages that only the largest integrated provider of seismic equipment, services and technology can offer. In Peru there are smaller companies present who don’t offer the advantages of a large infrastructure and new technologies to support their service offering. CGGVeritas has all these advantages and can offer clients the most advanced technology and services at a competitive rate locally.
Our added value lies in our ability to offer more in terms of scale and cutting-edge expertise to oil and gas companies. This is a strength of CGGVeritas and is increased through the long-standing partnerships we have nurtured with international companies, not just in Peru but worldwide.
In short, what are the main added-value solutions CGGVeritas offers to its clients that make it their partner of choice?
The main added-value features that are most important here in Peru are our unmatched international support and experience which, combined with our latest-generation technologies and techniques, allow CGGVeritas to solve the most complex operational, technical or geophysical problems our clients might face. As an example, the Group is based in many other countries, sometimes working on similar projects in terms of operations, geology or terrain. This knowledge and expertise can easily be transferred from one place to another strengthening our ability to provide proven solutions.
To best understand the challenges and prepare and deliver solutions that meet these needs, it is also important for us to work with long-term business partners who will continue with exploration and then production efforts for years to come.
Given the challenges and opportunities, what role does Peru have in the CGGVeritas plans for the South American market?
In South America, I see four different markets. Brazil is a fast-growing country where being a partner of Petrobras is a must. Then there are the markets where PDVSA is a major player, such as Venezuela, Ecuador and Bolivia. The third market is Colombia, where currently there are a lot of interesting developments and ongoing challenges.
The fourth, last in my overview but by no means least, is Peru. In fact, it is the most interesting to me. There are tremendous opportunities here for oil and gas companies. Peru is a country with a sound and stable economy where investor-friendly policies increase our effectiveness and efficiency. Peru’s open market and the presence of a growing number of oil and gas companies exploring and producing create an interesting market for companies such as CGGVeritas. However, Peru is still waiting to discover fields on the scale of those in Ecuador or Bolivia. Larger-scale discoveries would attract more companies to Peru. The increased presence would in turn lead to further expansion in the Peruvian market.
Even so, as you mentioned before, in two years CGGVeritas has become a leader in the Peruvian market. What do you expect for the coming years?
The outlook of CGGVeritas in Peru depends to a large extent on the local oil and gas market and I expect a bright future. CGGVeritas is confident and will continue to expand its portfolio in Peru. We are already seeing growing potential for marine surveys, having just finished a successful project off the northern region of La Libertad and Lambayeque coast last January
What is your final message to both your Peruvian clients and counterparts?
Firstly, of course I would encourage oil and gas companies to partner with CGGVeritas as our superior technologies, excellence of service and depth of knowledge make a difference and can help discover and optimally produce the huge hydrocarbon potential of Peru.
Secondly, I would again highlight the advantages of Peru and the opportunities for significant discovery here. I would recommend that oil and gas companies allocate a larger share of their budgets to exploration and especially to the potential that new geophysical technologies and services can bring. These recent advances can lead to successful drilling. The latest technology, across the full spectrum of geophysics, is only available through CGGVeritas, and we have a strong commitment to Peru and our ongoing R&D activities to provide solutions to local challenges. I’m confident that once local oil and gas companies employ these more advanced technologies, they will achieve significant benefits and bring progress both to their shareholders and to Peru as a whole.