A trusted partner in Colombia’s energy industry

Colombia

Tulio Iván Vélez Hoyos, president of VQ Ingeniería, talks to The Energy Year about the key sectors the company works in, the importance of certified standards and the inroads it has made into Colombia’s hydrocarbons industry. VQ Ingeniería is an engineering consulting and supervision services company.

What key sectors does VQ Ingeniería work in, and how important are certified standards?
VQ Ingeniería is an engineering consulting company specialised in project management, supervision, technical inspection and engineering design. Despite being involved in several industry sectors, the most relevant one for us is hydrocarbons, which accounts for 85% of our revenue.
We are also strong when it comes to the infrastructure and energy sectors, where we have been involved in major highways, public buildings, power lines and renewable energy projects. Regarding mining, we are hoping that this sector receives tangible government support with clear policies in place so that mining companies and investors have more confidence in the future.
As for VQ’s added value, we know the Colombian market very well. In addition, we have developed high quality standards since our incorporation 25 years ago. We are certified in four global quality standards: ISO 9000, 14000, 45001, and about three years ago, we were certified in the energy efficiency ISO 50001 standard.
These certifications are essential for working with key actors in the oil, gas, mining and energy sectors – sectors that are stringent in terms of safety and environmental standards.

What inroads have you made in Colombia’s hydrocarbons sector?
Prior to VQ’s incorporation, its founders’ experience was mainly in the oil and gas sector. It was therefore natural that, at the onset, the company focused on pursuing opportunities in this industry where we have been very successful.
Throughout our history we have had a presence in the upstream, midstream and downstream sectors. Our portfolio of clients comprises major local and international oil and gas companies, including Ecopetrol, Ocensa, Parex Resources, Cenit, TGI [Transportadora de Gas Internacional], Repsol, Oxy, Frontera Energy, Canacol Energy, Perenco, Gran Tierra Energy and others.
VQ has an outstanding reputation, and the company has become one of the oil and gas sector’s leading consulting firms, receiving recognition from clients such as Ecopetrol, Parex and Oxy. As an example, VQ is a trusted partner for Ecopetrol’s Castilla, Chichimene and Apiay fields. These are Orinoquia oilfields that are being developed near the city of Villavicencio, which is currently one of Ecopetrol’s largest producing areas in the country. We have been involved in the Orinoquia project design from the initial phases and are supporting the client up to the project’s start-up and delivery.
We are also involved in supervising the development of project engineering following the mature or conceptual design phase.
Presently, VQ is also working with the Canadian company Parex Resources, through a nationwide framework contract, to provide HSE supervision, environmental feasibility and engineering support for the development of a variety of oil facilities. Parex Resources also has plans to develop renewable energy capabilities, including geothermal power generation. We look forward to providing them with technical support.
We also have vast experience in the oil and gas midstream and downstream sectors. We have provided consulting services to many of the largest pipeline operators in the country, such as Ocensa, Oleoducto de los Llanos Orientales and TGI. More recently, VQ was awarded a three-year contract with Cenit, a subsidiary of Ecopetrol that transports crude oil and refined products through pipeline networks across the country. Through this contract VQ will provide project management services for Cenit’s nationwide portfolio.
As for the downstream segment, our involvement in the Barrancabermeja Refinery expansion represents one of our most challenging and successful experiences. Here we supported Ecopetrol for over eight years with our project management and supervision expertise.

What opportunities are you trying to capitalise on in solar, wind and hydro?
VQ Renovables is a business unit within VQ that we recently created to respond to the demand for energy transition in the market. We started participating in this sector more than two years ago, especially through oil and gas companies, such as Ocensa and Oleoducto de Colombia, which needed to install solar farms in some of their operations.
We successfully completed a renewable energy project assignment with Enel Green Power. We had the opportunity to carry out technical inspection of what is now the most important solar farm in Colombia, La Loma and El Paso, as they operate interconnectedly. These farms have a combined capacity of 200 MW.
We are aware that wind projects are more scarce and develop more slowly. Regulatory approvals and interconnection to the national power grids are other issues that make the wind projects more challenging. Nevertheless, we see potential here and are prepared to support our clients in their efforts to reduce gas emissions.
Regarding hydro, we are currently involved in a hydroelectric plant for AES, operated in the department of Boyacá. VQ is participating in the technical supervision of a major maintenance assignment.
Furthermore, we are looking at several other business opportunities related to small hydropower plants. We already have experience in this area after supervising the Hidrosogamoso hydroelectric project, which generates 820 MW.
While 85% of our revenue currently comes from the oil and gas sector, we believe that within the next five years, that number will be reduced to 50-60%, thanks to our increased involvement in energy projects, specifically renewable energy projects, as well as the expansion of our presence in other economic sectors and entry into new markets.

What growth projections does the company have in the short-to-medium term?
We aim to continue growing in terms of technical capabilities and revenues. We have had sustained growth over the last 25 years, with some ups and downs due to the variability of oil prices, the global economy and our significant presence in the hydrocarbons sector. However, the oil price scenario seems bright for the foreseeable future.
In the short term, we want to be successful in the renewable energy sector. Sustainability is critical to us, and it has been a part of VQ’s purpose since its inception. Our mission has been to contribute with engineering services to economic and social development to generate progress and wellbeing for our clients, shareholders, employees, contractors, partners and community.
We strive to harmonise our activities with the environment and interested parties while managing the impacts of our operations in a sustainable manner. Consequently, since 2021, we have progressively streamlined our sustainability strategy based on ISO 26000, which covers social responsibility, and the Sustainable Development Goals. This has evolved into a solid ESG framework aligned with the latest global trends in sustainability.
Finally, based on financial figures from 2022, we were ranked among the top seven companies in the consultancy sector (supervision and management services) in terms of revenues. We believe that with our experience, capabilities and our team of highly skilled professionals, VQ will be ranked among the top three major consulting companies in Colombia within the next few years.

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