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Oilfield Securityin

Mexico

Oilfield Security in Mexico

What is the greatest risk to your employees’ safety in Mexico?


What is a company’s greatest loss risk in Mexico?


Elements

Overview

Understand the Culture

FCPA

Ethics

Build Your Team

Checks and Balances

Security

Oilfield Security in Mexico• Overview – Mexico

• Population 117,248,428

• 78% reside in towns over 2,500 – 12% in towns less than 2,500

• Per capita income $3,156 (U.S.)

• Is not homogeneous

• Not all of Mexico is unsafe

• Every area has its own risk levels and social issues

• Has a literacy rate of 98% (Unesco)

• Unemployment rate 4.33% (Instituto Nacional de Estadística y Geografía)

• Murder rate 22 per 100,000

• Kidnap capital of the world – Less than 10% reported – Est. Over 100,000 in 2014


• Understand the Culture

• Train your U.S. team before your start planning operations

• There are cultural differences

• 75% of the country is Roman Catholic

• Mexicans are nationalistic

• Titles and position are extremely important

• Etiquette and correct decorum are central to behavior

• Employees avoid confrontation

• Employees do not like to make waves

• Separating work from personal relationships is difficult

• Diplomatic answers are more common than straight answers


• Ejidos• Under President Lázaro Cárdenas in 1934 land reform was initiated• Landless farmers petitioned the government for to create an ejido in their

area• An ejido is an area of communal land used for agriculture on which

community members individually possess and farm a specific parcel• Ejidos are registered with Mexico’s Registro Agrario Nacional• Ejidatarios do not actually own the land – they use the parcels indefinitely as

long as the land is not unproductive for more than 2 years• Because of low productivity, President Carlos Salinas de Gortari eliminated

the constitutional rights of ejidos in 1991• Existing ejidos were not disbanded and much rural land in the south is still

part of the ejido system (Tabasco has 805 ejidos)


FCPA


•FCPA• Training has to be ongoing for your team

• It must be relevant to what you are doing

• Use specific examples

• Have an FCPA hotline to answer questions and to report violations

• Make certain that your managers own FCPA compliance

• Incorporate the new Mexican anti-corruption laws into your training


Ethics


• Ethics• Mexico has a history of corruption

• Success in Mexico is dependent on how well you can implement a culture of honesty and transparency

• Ethics training starts at the top and should be a shared experience

• Ethics training should be monthly and scheduled with Safety meetings

• It must be relevant

• It must encourage group participation

• Establish 24/7 Ethics Line

• If your employees do not take ownership of your ethics policy you WILL have ongoing internal issues


MANAGEMENT MUST SET THE EXAMPLE


•Build your team• Security does not exist in a vacuum

• Team members• Human Resources

• Legal

• Operations

• Internal Audit

• Safety

• Security

Keep your lines of communications open

Staff functions should report to the

Corporate Office

NOT the Country Manager


•Checks and Balances• Audit your programs

• Human Resources – randomly check backgrounds

• Purchasing – every quarter verify some vendors

• Report cards – use key indicators every month to spot issues

• Share report cards with supervisors and managers

• Hold people accountable


SECURITY

No Matter How Thorough Your Initial Assessment Is:

Security Risks Change Almost Every day!!!!


Never depend on other companies to protect you


•Security• Elements

• Risk Assessment

• Physical Security

• Personnel Security


• Risk Assessment• Intelligence

• Meet with peers who are operating in the area

• Arrange meetings with local military commanders and federal police

• If you use a consultant, make certain he has operated in your area

• Where are you operating?• Natural hazards – hurricanes, earthquakes

• Social Issues

• What are you protecting?

• Local Incidents – just because crimes are not reported does not mean they aren’t occurring (Mexico is the most dangerous country for journalists in the world – many crimes and issues are never reported)


Local Bandits or Cartel?

Oilfield Security in Mexico• Intelligence Sources

• OSAC

• ASIS International

• CLAM (Comite Local de Acción Mutua)

• Consultants

• Military and Law Enforcement

• Newspapers

• Contacts

• Employees

• Private Intelligence Services


• Physical Security• Offices and Bases

• Hardening your target

• Gates

• Fences

• Lights • Good perimeter and interior lighting is critical

• Electronics• Remotely activated alarms and strobes are strong deterrents

• CCTV – does not prevent attacks

• It does record critical areas

• It does provide remote viewing and audits

• Guards


•Harding your target• You can’t out gun the cartels• You can control entry and egress

• Intercoms

• Gates

• Mantraps

• Bullet resistant guardhouses


Guards are the most under utilized resource in Mexico

Oilfield Security in Mexico• Guards

• Select a guard company with a presence where you operate

• Set the standards for guards• Candidates (ex-military preferred)

• Training

• Wages

• Uniforms – should be professional and set an image

• Make your guards part of your team• Meet with your guards once a month

• They should receive your company’s training• Safety

• Ethics

• Use your guard service to provide weekly and monthly management reports

Oilfield Security in Mexico• Vehicle Security

• All vehicles must have GPS tracking devices and be monitored by a central station

• No employee can be allowed to disconnect a GPS device

• Advertise on each vehicle that it is monitored

• Paint your vehicles in a very distinctive manner• In socially sensitive areas, some companies keep a lower profile

• All drivers should take and pass a company driving course at least annually

• Penalties for not reporting accidents, even minor scrapes must be severe and uniformly enforced

• Driving at night should be forbidden unless there is an emergency and strict security protocols adhered to


• Personnel Security• Background checks are essential

• Try to avoid hiring people from the same family

• Build your lines of communication with Human Resources

• DO NOT hire anyone with connections to organized crime

• Emphasize: NO ONE should be paid for employment

• New employee orientation is critical (company values)

• All incidents should be immediately investigated

• All rumors and anonymous information should be reported and evaluated


• Protecting your people and assets in the field• Management should receive a weekly field risk assessment report

• Physical security standards must be set and maintained

• Guards must immediately report any physical security violations

• Inspect, Inspect, Inspect

• Mangers must receive periodic physical security training

• As conditions change, training must be updated

• Field security begins with your perimeter

Oilfield Security in Mexico• Rig Security

• Security must conduct a survey of each new rig site

• Perimeter• Guards must control access

• At night, the perimeter must be illuminated

• Armored Safe Houses• Fire extinguishers

• External Antennas for cellular and satellite communications

• Electronics• Remotely controlled sirens and strobes lights are very effective deterrents

• CCTV cameras DO NOT deter attacks

• Patrols

Teamwork

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