# Presentation: 305856

## Doing Business in Mexico

- 	Mike Martinez
- President of Bay-Inelectra
- President of Constructora Bay de Mexico

## Introduction 

- Bay Ltd
- Constructora Bay de Mexico S.A. de C.V. (C-Bay)
- Bay-Inelectra S.A. de C.V.

## Why Mexico?

- Opening new opportunities for private investors in the oil & gas and petrochemical industries. This makes Mexico very attractive for investment opportunities
- Stable economy
- Market size and opportunities with Pemex, CFE and Private Sector
- New COG areas that will require new technology
- NAFTA facilitates the process between Mexico & US
- Geographical closeness to gulf cost, reduces time and operational costs
- There exists a business culture that understands our way of doing business

## Business Culture in Mexico

- It is not simply a matter of setting up an office and start operating like we do in the USA
- You need to take the time to fully understand the business culture
- In the case of Pemex, one of the biggest mistakes a US company makes is to not understand that they are dealing with a State owned company and not a private company
- Pemex is a company that belong to the State and as such has some very particular requirements
- Is this process  complicated? Maybe, but it is very doable, in the USA doing business with government entities can be complex
- However, there are many opportunities with Pemex and the investment in time outweighs the resulting business

## How did we do it

- Took the time to understand the Pemex requirements and procedures from the proposal phase to the project execution phase
- Reduce the uncertainty in many areas by selecting the right consultants and specialist in Mexico
- Legal, labor, taxes, real estate, permits, marketing
- Hire experienced Mexican specialist  to facilitate the learning curve
- Select strategic locations for business operations
- Select a complementary and experienced partner with same vision

## History of Bay In Mexico

- Started working in Mexico for Pemex via a sub-contract in 2000. Experience was good and we explored ways to expand our presence in Mexico
- In 2001 Bay formed a Mexican Subsidiary C-Bay in order to pursue opportunities directly with Pemex
- C-Bay succeded in winning a $40M USD contract for Pemex Ixtal-A in 2003. Project was executed between Corpus Chirsti, Tx and Mexico.
- We learned how to interface and execute projects to Pemex expectations
- Successful execution lead to more interest in Mexican market

## History Cont’d 

- Our success with Pemex and future project opportunities resulted in an increased interest in Mexico
- To be more competitive we decided that a local presence was needed
- We explored several options for a global and experienced partner
- We decided to partner with Inelectra an experienced Engineering, Procurement and Construction (EPC) company
- Inelectra has complementary experience to Bay
- We then explored several options for facilities
- Opened executive offices in Mexico City
- Regional offices in Tampico, Mexico
- Developed a yard contract in Pueblo Viejo, Veracruz
- Quoted several projects for Pemex and were awarded two Living Quarters Platforms HA-H and ZAAP-C valued at ~$150M USD

## Slide 8

## Yard Facilities in Mexico 

- Inaugurated Oct 2005
- Over 15 hectares (37 acres)
- Capacity to execute major projects for Pemex and others
- Shops, machinery and personnel (over 450 employees)
- Location Pueblo Viejo, Veracruz
- On the Panaco River, access to the Gulf of Mexico
- Corpus Christi, 420 miles, Carmen 570 miles
- Borders with Tampico, Tamaulipas
- Tamaulipas borders with Nuevo Laredo, Reynosa and Matamoros

## Slide 10

## Slide 11

## Summary

- We are convinced that Mexico represents a stable and growing market in the years to come
- Our plans are long term and the investment in the fabrication yard is proof of this commitment
- Thank Pemex for the opportunity to continue to participate in this very exciting market
- Thank our alliance partners that helped us establish ourselves in Mexico in record time
- Thank the Commerce Department for the support they have given us on all aspects of establishing ourselves in Mexico

## 
Thank You

Mike Martínez
Bay-Inelectra S.A. de C.V.
Bosque de Duraznos 127, Piso 8
Bosque del las Lomas, Mexico DF,  C.P 11700
Office: 52-55-5010-2300
Email:  martinezm@bayltd.com

**Thank You**
**Mike Martínez**
**Bay-Inelectra S.A. de C.V.**
**Bosque de Duraznos 127, Piso 8**
**Bosque del las Lomas, Mexico DF,  C.P 11700**
**Office: 52-55-5010-2300**
**Email:  martinezm@bayltd.com**