Eduardo Rivodó, president of Industrial Consulting Group (ICG), and María Corina Rivodó, the Group’s commercial director, talk to The Energy Year about how Colombia is ensuring its near-term energy security, the company’s key role at major refineries and its plans to expand its scope. ICG provides specialised technical consulting services for energy assets.
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Eduardo RIVODÓ: Colombia is not an oil nation per se, but it has plenty of it. Last year it produced around 777,000 bopd, which has had a great impact on the government’s coffers and the country’s economy. Oil production has also enabled the development of other sectors thanks to the related revenues. Nevertheless, because energy is a key pillar of the economy and the wellbeing of Colombians, there is a clear medium-to-long-term strategy to ensure future energy security.
The first area we should look at to ensure energy security is the potential of natural gas offshore our Caribbean waters. We must acknowledge, however, that the exploration and production of this resource comes at a high expense and takes time to materialise. The development of offshore natural gas will entail the need to develop infrastructure to transport it onshore, and from there to the major centres of consumption. Also, there is a need for further exploration of gas as the reserves-to-production ratio recently went down to 6.1 years. Fracking is another huge opportunity but it is not to the liking of the current government.
At the same time, we see an important energy transition scheme in Colombia. Past political parties as well as the one in office have been unanimous on this point. There has been a strong push for renewable energy projects, and Guajira has been deemed the future epicentre for wind energy. Wind velocity in that region is adequate and continuous – 24 hours, seven days a week.
Moreover, photovoltaic projects are on the rise in the country, and this has proven to be the preferred renewables technology. There are a plethora of solar projects being built or in the pipeline across Colombia.
Tell us about your ongoing involvement in the Talara refinery, a milestone facility for Peru.
ER: In 2020, we secured a contract from Petroperú to work in the Talara refinery in Peru. We started by writing the procedures for this facility, which has 16 plants and requires around 1,200 procedures. Secondly, we reviewed all the EPC work that was performed by Técnicas Reunidas and Grupo Cobra to make sure that all steps were inspected correctly, all the non-destructive testing was completed and everything was built according to the plans and established norms.
In 2022, pre-commissioning, commissioning and startup began. Some units, such as the hydrotreating, hydrocracking and distillation units, are already in production but still in the testing phase as there remains EPC work to be done. We are now in the process of starting up the fifth unit with a flexi-coking unit, which improves margins as it receives and treats all the residues of the oil coming from the distillation process.
In 2025, we aim to stabilise operations and reach the capacity to process 95,000 bopd. Since the refinery’s startup, it has produced fuels of the highest quality, such as gasoline, low-sulphur diesel, LPG, Turbo A-1 for commercial aviation and other products intended to supply the national market.
We have managed to ally ourselves with Spain-based company Dominion Global for projects such as these. While we bring to the table the technical expertise and know-how, they bring the financial muscle and their extensive experience in technology and telecommunications. It is a win-win alliance where we complement each other.
A key credential we brought to this project was the technical experience we acquired from our involvement in Reficar, the new refinery in Cartagena that currently produces 210,000 bpd, which means more fuel for Colombia. Moreover, since its startup, it has contributed 1% of the country’s GDP.
At Reficar, we got the refinery’s systems started and managed to get operations stable, assisting the operational and maintenance personnel and executing the services to strengthen the skills of operators, field and control room technicians, and supervisors.
What other markets in Latin America are you looking to expand into and what added value could you bring?
María Corina RIVODÓ: Given our strong attributes and successful track record, we are looking at different countries to expand our presence. We want to offer abroad our specialised technical services that add value and guarantee the success of complex projects to increase our clients’ capacities. We already have a presence in Peru, and we are looking to expand to Mexico and Argentina.
In Mexico they have just constructed the Dos Bocas Refinery, and there are plenty of opportunities given the magnitude of their oil and gas market and the need for modern refineries. We are looking for partners and potential clients in order to enter Mexico and also Argentina, given its oil and gas industry’s recent growth, as well as their new policies to attract foreign investments.
Our added value comes from having a mix of competitive local and international personnel and being cost efficient. We compete with international firms, and we are as good as them, having worked in the new Talara and Reficar refineries, as well as the Rubiales oilfield, where we did the startup and commissioning of the central production facilities and water injection system.
At the time, it was the largest operation of its kind in the country, which allowed Colombia to surpass the 1-million-bopd production benchmark.
And it’s not only about our technical expertise. It’s also about the methodology we implement, our risk management and our planning strategies, combined with the leadership of our highly qualified personnel that assures us that, whatever project ICG is involved in, that project will be fully completed and successful, with stable operations.
How are you looking to expand ICG’s scope to cover the energy industry at large?
ER: Our specialists have more than 30 years of experience in the market. We have the know-how and the technical expertise. But like in any business, one has to think outside of the box and look at new avenues. Along with our partner Dominion, which also specialises in construction, we decided to extend our scope of reach and cover energy as a whole, including power transmission, power generation and renewables.
The idea would be to participate in the construction of gas-fired power plants. For instance, we will do the support in construction, verify the engineering, inspect the materials, audit the construction and pass on to the commissioning and electrical power generation.
We would like to be involved in power generation, wind energy, refining to produce hydrogen, biogas, biodiesel and green energy projects. This is our vision, and we understand the need to transition to cleaner energy in a semicircular economy.
Tell us about the new hydrocarbons refining course being launched by ICG.
MCR: Under the corporate social responsibility initiative, Educating Together, ICG has its own educational programmes to strengthen STEM areas and careers, which are considered the four areas with the highest demand for professionals today.
We also have environmental programmes that are carried out hand in hand with the communities. Our commitment to education has materialised in the creation of our brand-new certified hydrocarbon refining course: the diploma in hydrocarbon refining.
Launched in August 2024, this course has a duration of six months of virtual training accounting for a total of 176 hours that will be continued year after year with new students.
With renowned industry-experienced instructors giving insights on real-life scenarios, this diploma course is a combination of personalised lessons, virtual workshops and educational materials that aim to cement know-how on the petroleum refining process, services revolving around this process, operational intricacies, commissioning and start-up procedures, as well as strategies related to the economics of refining.
With it, we aim to accelerate knowledge transfer for the engineers and other passionate individuals who make up a key part of the present and future of the oil and gas sector in Latin America and other parts of the globe.
Extracted from the article “Ensuring Energy Project Success” by The Energy Year, September 25, 2024