What areas is Colombia exploiting in order to ensure its near-term energy security?
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

La entrada Ensuring energy project success se publicó primero en ICG.

Additionally, Ecopetrol remains the largest company in the country, accumulating revenues of 73.2 trillion pesos in the first half of 2023.

These figures not only translate into revenue but also into employment, development, and well-being for communities. Much of this positive impact has been achieved thanks to the management of companies like Industrial Consulting Group (ICG), a Colombian firm with 14 years of experience that has been part of the history of high-impact projects such as the Cartagena Refinery and the Rubiales and Quifa fields, among others, which have led them to expand their business into Panama, Peru, and Mexico.

Eduardo Rivodó, the company’s president, describes himself as “Venezuelan by birth, and Colombian by adoption.” This engineer, with extensive experience in his field, left his country in a context of “companies being expropriated and oil workers laid off,” which led to a significant brain drain. Many highly experienced Venezuelan professionals emigrated in search of new opportunities.

In 2009, he settled in Colombia to establish ICG, a firm focused on providing technical services for the oil industry in the field. One of its main lines of business is acting as a bridge between builders and operators when it comes to commissioning and starting up facilities for crude oil processing, in any of its phases.

First challenge

Their first contract, that same year, was with Pacific Rubiales. It involved initiating testing and later operating the expanded facilities at the Rubiales Field, the largest operation of its kind in the country. This project enabled Colombia to surpass the production of one million barrels of oil per day and gain a prominent position in global markets.

Rubiales crude is different from traditional oil and is classified as extra-heavy, requiring special handling to ensure efficient extraction. This is where Venezuelan engineers were able to make a significant difference.

“At first, around 15,000 barrels a day were produced because techniques widely used in Venezuela were not yet known. These fields need to be operated differently from conventional ones. That was the opportunity for many engineers to come to Colombia and apply their knowledge to increase production,” Rivodó emphasized.

Self-sufficiency

The executive pointed out that today things are different, and the country has “technological self-sufficiency” with a skilled, world-class workforce capable of taking on any productive task.

This includes fracking techniques, which, “although not well received by some communities environmentally, can contribute resources from unconventional reservoirs. I am convinced that if done properly, it has the potential to even quadruple reserves.”

Rivodó emphasized that “Colombia is not an oil-producing country, but a country with oil.” The difference, he explained, is that while the national territory has a potential of 2 billion barrels of crude, the Orinoco Oil Belt in Venezuela alone holds 236 billion barrels.

Since his arrival, he stated, the horizon for Colombia’s conventional oil reserves has remained between 6 and 8 years, but it has not increased substantially, and that has a limit. “Colombia has been thoroughly studied and structured, and it really needs to prepare for a post-oil solution because it is not a long-term resource,” he assured.

Major challenge

María Corina Rivodó, ICG’s Director of Marketing, Communications, and CSR, emphasized that while the company’s initial milestone was bringing knowledge that was not available in the country, its greatest achievement was in transferring it to Colombians.

“The human talent and team that Industrial Consulting built were based on that synergy between highly qualified Venezuelan migrants and experienced Colombian personnel who came from Ecopetrol,” she remarked.

This is how a team was formed for the start-up and commissioning of Reficar, one of the most modern refineries in Latin America, which today produces around 210,000 barrels per day and contributes 1 percent of Colombia’s GDP.

ICG was the only Colombian company with the know-how to participate in the selection process, which it ultimately won over major international companies from the United States, Canada, and the United Kingdom, with prices two or three times more competitive.

“You don’t hand over a massive airplane to just anyone to take off; it must be someone with all the necessary knowledge and skills. In our case, they entrusted Reficar to us for five years with full confidence, a facility with equipment that cost billions of dollars,” Rivodó explained.

Outlook

Last May, Campetrol called on the national government to “make decisions that ensure energy and fiscal self-sufficiency beyond 2029,” in addition to “implementing policies for the development of new exploration and production contracts.”

The government’s announcements to suspend new oil exploration projects have not caused ICG to lose its momentum. In fact, it continues to maintain key operations in Peru and now in Mexico, though, as part of the sector, it has some concerns.

“Halting exploration impacts energy security and self-sustainability,” said María Corina. She warned, “The oil industry also contributes to regional development, and this would be affected, as well as the country’s macroeconomic stability.” Sector figures indicated that between January and June 2023, there was a 16.8 percent reduction in total drilling activity.

The survey conducted by the association for that period revealed that the main issue facing companies in the sector is social conflict, followed by the cost of raw materials and lack of demand.

In this regard, ICG has contributed to the CSR projects of its clients, such as those with Petroperú, and maintains its own initiatives in education in collaboration with universities, as well as environmental initiatives in partnership with local communities. “We have programs like Educating Together, Building Together, and Working Together, which contribute to the United Nations Sustainable Development Goals,” the executive noted.

“Our greatest achievement,” emphasized Eduardo Rivodó, “has been showing the world that things can be done with intelligence, techniques, and timing. I don’t think there’s a Latin American company in the world that has undertaken a project as complex as ours. Here in Colombia, there is world-class technical expertise ready to be exported.”

Extracted from “Special: Companies Building the Nation” by Revista Semana, Colombia, August 29, 2023

La entrada The Company Behind Colombia’s Most Important Oil Projects se publicó primero en ICG.

ICG, conquered the attendees during the closing cocktail where industry experts, the president of the Colombian Oil Chamber, professionals and employees were able to do networking, exchange views on the event and plan joint activities for the national energetic development.

ICG Master Conference

With a full room, more than 300 people were able to get acquainted on the Optimization Processes for the Hydrocarbon Industry. More specifically for the production of heavy crude oil and how these innovations can increase competitiveness with Eng. Eduardo Rivodó (president of ICG). Thanks to the above case, participants were able to benefit from the know-how and expertise of ICG. Thus, helping young professionals understand, the reality of the sector and how they can contribute to change and innovation.

La entrada ICG participated in the Expo Oil & Gas Colombia 2016, with a stand and Master class. se publicó primero en ICG.

The port terminal was built by Sacyr, the spanish multinational. The investment was around US$140 millions. This shall generate 17.500 gigawatts per hour for the year, which would represent almost 27% of the energy consumed by the country.

The regasification is dependant on the main thermoelectric generators from the caribbean coast. Among which are Tebsa, Termocandelaria and Zona Franca Celsia. This avoids the overdimension of operational efforts.

It is important to highlight the spanish multinational’s experience; Sacyr, leader in infrastructure and services. With presence in 29 contries, their portfolio includes the latest set of locks of the Panama Canal, the Pumarejo bridge in Barranquilla (under construction), a series of highways in Spain, among others.

It has been an honor for Industrial Consulting Group to be a part of this ambitious Project. Thanks to the opportunity and trust from Sacyr. ICG succesfully overcame the challenge of commisioning and start up in record time. This would be the 1st FSRU (Floating Storage Regasification Unit) in Colombia.

Proyect details

ICG managed to gather the talent pool that ensured the reach of máximum flow of LNG in a short period of time. A project manager, a delivery coordinator and a document management specialist were among the profiles. Other specialists, were also part of the team, Firstly, those from the mechanical and electrical field; Secondly, measurement and control and thirdly,16 professionals from operations.

The port terminal was built in 16 months, inside the estimated timeline. The SPEC (El Cayao Port Society) has a port with a floating storage and regasification unit (The Höeg Grace), a 760mts long dock and a 10km gasoduct that connects the terminal to the National Transportation System.

La entrada THE FIRST REGASIFICATION PLANT OF LNG IN COLOMBIA REACHED ITS MÁXIMUM FLOW se publicó primero en ICG.

Thus, ICG awaits approval for the operational plan taking place in 2017 from the CNH.

Further more, a few activities are scheduled. prior to the Evaluation Plan. These are associated to the integrity tests of the current wells and their potential. These tasks, will determine the full acceptance of some existing wells or their return to PEMEX before may 21st 2017. This is the final date to provide the answer to the Mexican National Hydrocarbons Commission (NHC) and deliver the environmental and social Base Line.

On May 11 2016, The Mexican National Hydrocarbons Commission (NHC) agreed to

To award the contract for the Area Contractual 10 “La Laja” in the international public bidding process CNH-R01-L03/2015 for Round 1 to Desarrolladora Oleum, S.A. de C.V., in consortium with Ingeniería, Construcciones y Equipos Conequipos Ing.LTDA., Industrial Consulting S.A.S., Marat International S.A. DE C.V. y Constructora Tzaulan, S.A. DE C.V. The field is located in the Ozuluama Municipio of Mascarenas, in the state of Veracruz.

For the management and operation of the contract, the companies mentioned above,

Constituted the company OLEUM DEL NORTE S.A.P.I. DE C.V. It is estimated that the field has the potential of reaching two thousand five hundred oil barrels per day. the field was officially delivered to OLEUM DEL NORTE S.A.P.I. DE C.V on november 23 2016.

La entrada ICG BEGINS OPERATIONS IN MEXICAN FIELD LA LAJA se publicó primero en ICG.