Implementing the change, expanding operations in Mexico Fernando De La Rosa, CPP July 9, 2014 Mexico...

Implementing the change,expanding operations in Mexico

Fernando De La Rosa, CPPJuly 9, 2014 Mexico City

Most significanto Pharmaceuticalo Miningo Hospitalityo Transportationo Maquilao Retailo Auto

Investment opportunities

Telecom Energy Oil & Gas

New markets

o Conduct a thorough risk analysis o Consider cultural differenceso Seek assistance from local ASIS contactso Invest the required timeo Due diligence o Minimize surprises

First steps

Case: States of Tamaulipas & Tabasco

On Shore Mature fields

o Land owner rights o Oil is state property o 200 sq. km fieldso 1200 well headso 300 wells producingo Severe threat areas

Threats

Organized crime & DTO’s Unions Communities Theft (oil, equipment, well

heads 80K) Spills Environmental damage Hostage situation

Journey management and travel restrictions GPS tracking 24 x 7 Access to fields open or blocked Union “leaders” asking for money Oil lines sabotaged to cause spills Theft of well heads and equipment Extortions due to right of way Organized crime gun battles (Tamaulipas)

Operation

Security must be within the corporate values Upper management support Employees and contractors training Enforce controls and accountability Limited hours of operation (flexible) Journey management Branded vehicles and personnel Police and military support Prosecute when necessary

Factors for a successful operation

Final thoughts

It is possible and profitable to invest in Mexico Security must be perceived as an strategic

partner for all the business areas Even in severe threat areas it is possible to

invest Must conduct with highest ethic standards Local colleagues and consulting firms can

provide invaluable assistance

Prosecute

Thanks

Fernando De La Rosa, CPPfernando.delarosa4@yahoo.com