Can you talk about SIMA’s founding and its growth since then?

Certainly. SIMA was founded back in 1979 and has since grown to incorporate two divisions: projects and services. Our primary focus is on surface operations in the uphole industry. The projects division is responsible for the construction of production facilities such as generation plants, compression plants, and various projects related to renewable energy. Meanwhile, our service division is focused on operating and maintaining those facilities, which has been our most profitable sector, providing us with consistent exposure to major players in the industry.

As the oil and gas industry has grown and evolved over the years, how has SIMA’s service offering changed alongside it?

With the emergence of Vaca Muerta and the increasing importance of shale activities, we have been awarded projects in sand logistics, water management, and water disposal – all necessary components of unconventionals and fracking. As such, we have become a full-service company that can provide solutions across the board.

How important have partnerships with foreign companies been to SIMA?

Our partnerships with foreign companies have been crucial in expanding our reach and establishing ourselves as a reliable partner for American companies looking to get involved in Neuquén. For instance, there have been instances where companies like Thru Tubing Solutions (TTS) hesitated to come to Argentina due to the challenges associated with import restrictions and the repatriation of profits. In such cases, SIMA entered into a partnership with the company by importing products from TTS and receiving TTS experts. In return, TTS receives a cut of the profits. Recently, SIMA gained the representation of Waukesha engines, which is a part of GE.

In addition to growing horizontally within the unconventionals area, what else does SIMA plan to get involved in as the industry grows?

We are determined to be involved in the growth of renewable-energy projects as Argentina must focus on making its citizens more socially aware of different forms of energy and incorporating them into the energy matrix. We would like to grow with this. To this end, part of our company’s strategy is investing in innovation and development. For instance, we have partnered with INVAP Ingeniería, a state-owned company dedicated to nuclear and renewable energy projects, through a 20% equity take. We have also been involved with Google’s Project Loon to bring the internet to every person on the planet and worked on the logistics of the project in Patagonia, Argentina. The exposure and innovation involved with this is another area the company wants to be involved in.

Do you have a final message?

Opportunities for service companies like SIMA abound as exploration and production companies continue to develop Argentina’s shale plays. Service companies will need to build new facilities and create new solutions as the industry learns more about Vaca Muerta and the Neuquén Basin. Despite Argentina’s long history in the industry, there is still much to be done.