BSI Offers $2 Billion in Savings to Mexican Energy Projects: President Interviewed by Mexican Business Journals

 

David Jacoby

David Jacoby, President of Boston Strategies International, during his participation in the panel discussion “Hydrocarbons Infrastructure in Mexico” at the 2nd Mexico Gas Summit 2016, in San Antonio, Texas.

 

Monterrey, Mexico (April 22, 2016). – With the aim to help the Mexican government save $2 billion on the gas pipeline projects being tendered, and $8 billion on power plant construction over the next 15 years, the international consulting firm Boston Strategies International (BSI) started operations in Mexico.

“BSI is a consulting firm that compresses the lead-time and reduces the investment in major capital programs for oil, gas and power operators by up to 30% through value chain cost engineering, targeted strategic sourcing, and supply contract negotiation”, said David Jacoby BSI’s President.

The firm has worked with companies such as BP, Chevron, Gazprom, PDVSA, Total and major suppliers in Saudi Arabia and the Middle East. Boston Strategies International has offices in Saudi Arabia, Bahrain, China, Colombia, United States, India, Iraq, Nigeria, Qatar,United Kingdom, and recently in Mexico.

David Jacoby remarked that BSI could help operators, including Pemex and CFE, to increase their return on investments by 10% based on lower capital cost than competitors. “We could reduce between 13% and 30% of the investment portfolios across the range of energy projects, as we have done with other companies around the world”, he said.

The President highlighted that the firm could have advised the bidders participating in Round 1, on their bidding strategy and costs to ensure profitability and sustainable returns.

“We publish thought leadership, benchmarks, and methodologies to help these companies make good tenders and bids. But in some cases, if the oil price is too low, the deal just shouldn’t be done.”, Jacoby said.

“We focus on value chains through 14 different ways to cope with the extra capital costs, economies of scale, among other methods we have developed to over the years to reach win-win situations.”

For more information, please visit these articles in Negocios, El Norte, and Empresas Article (Mexican business journals).

Ofrecen ahorros en proyectos energéticos_Periódico Reforma, México (1)

Ofrecen ahorros en proyectos energéticos-Periódico Reforma, México by Luis Valle

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About the author

David Jacoby has been consulting for over 25 years in operations strategy, of which the last eight have focused on the oil, gas, and power industries. He wrote Optimal Supply Chain Management in Oil, Gas, and Power Generation (PennWell, 2012) and The Guide to Supply Chain Management(The Economist, 2009). He has taught Operations Management at Boston University's Graduate School of Business and served as a Contributing Editor for the Economist Intelligence Unit. He holds a B.S. in Economics and an MBA from the Wharton School.

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