Interview with Michel Louboutin and Alex Serban
Michel Louboutin, Co-Founder and COO, along with Alex Serban, Subsurface New Ventures Manager, delve into the operations of Expert Petroleum—a company specialising in the exploitation of mature wells and the environmental considerations that are central to this innovative approach.
How does XP position itself in a country? And how long does it take from initial contact to signing a contract usually?
Michel Louboutin: It typically takes several years to establish operations. In Romania, for instance, it took us five years to secure our first contract. The same timeline applied in Ukraine, from my initial visit to the signing of the country’s first-ever Production Enhancement Contract (PEC) with Naftogaz.
This process takes time for several reasons. First, unlike major oil companies, we are not as widely recognized, so we must actively build awareness of our expertise and value proposition.Second, our business model is quite different fromtraditional approaches and can initially be surprising— since we fully finance both Capex and Opex, receiving payment only based on the success of our work. While this may seem like a high-risk strategy for Expert Petroleum, it is, in fact, a calculated approach. Before committing, we conduct a thorough evaluation of the fields and wells we plan to operate. Thanks to the in-depth analysis carried out by Alex’s team, we have strong confidence in the production enhancements we promise our partners.
Alex Serban: Our business model is indeed unconventional and requires thorough explanation upfront. However, once our partners become familiar with it, they gain a strong sense of confidence—one that we share. This confidence stems from the rigorous assessments we conduct before signing any project, allowing us to accurately evaluate its potential.
To ensure a comprehensive review, we have developed an in-house process that thoroughly examines reservoirs, assets, and all key operational aspects. Our assessment covers financial viability, production potential, surface facilities, as well as HSE (Health, Safety, and Environment) and HR considerations. While we operate within a limited timeframe—since this evaluation takes place concurrently with contract negotiations—the process is both robust and reliable. This enables us to confidently allocate funds and resources to each project.
What criteria do you use when choosing a country to offer your expertise?
ML: We typically begin with a trusted contact who confirms that a particular country or region holds promising potential. Having spent several decades in the oil and gas industry, I’ve built an extensive network of connections that has proven invaluable in identifying opportunities.
In Ukraine, for instance, I had previously worked for Schlumberger before the Maidan Revolution. When we decided to explore the market there, I reconnected with my contacts, and together, we gradually developed a proposal aligned with the authorities’ objectives.
The countries we target often have significant experience in hydrocarbon extraction. Ukraine, for example, possesses the second-largest gas reserves in Europe, surpassed only by Norway. As we continue to explore opportunities worldwide, the work remains both challenging and immensely rewarding.
AS: I’d also like to add that after this initial phase, we move on to the more technical aspects of the project. This stage is crucial in ensuring the project’s viability for all parties involved.
What are your relations with the political authorities and your partners in the countries where you operate?
ML: We maintain contact with authorities such as the Ministry of Energy, the Ministry of Finance, and the Ministry of Environment, but we do not engage in politics. Our relationships are built on the success of our work.
This is especially true in Ukraine, where we are currently the only foreign oil and gas company still operating in the country despite the war. This unique position ensures that our concerns are carefully considered when we need to discuss specific issues.
We also have strong relationships with Romanian authorities, where we have been operating for an even longer time. Local and technical authorities are our primary partners, with whom we engage on a regular basis.
AS: Indeed, the technical aspect is of paramount importance. We must secure approvals for development plans, drilling operations, and other key activities. This involves extensive discussions and meticulous preparation of all necessary documentation to ensure clarity and understanding. Our goal is to facilitate a smooth and efficient process, ensuring that everything progresses seamlessly.
What are the specific technical features that enable a company like XP to produce more in fields that are already mature?
ML: We utilise cutting-edge technologies that only a handful of companies have the expertise, some of which we have even developed in-house to address specific challenges. Importantly, we are not dependent on any single equipment supplier.
For instance, we designed a highly specialized yet simple pump to extract water from a gaswell—an idea initially met with skepticism due to the extreme operating conditions (+175°C). However, the technology proved successful.
In Ukraine, whenother foreign companies exited the country, we stepped in to support local contractors by helping them import the best available technologies, ensuring they could continue operating efficiently.
While we source technologies from different countries, we exclusively hire local employees. They understand the country, speak the language, and are highly motivated to deliver top-quality services that directly benefit local communities. We also place a strong emphasis on training, particularly regarding safety protocols, as we maintain exceptionally high standards in this area.
AS: I believe our HR policy is a key element of our success. Specifically, we focus on working with local talent who have international experience. These individuals possess a strong understanding of local issues while also being familiar with the latest technological advancements used abroad.
However, it’s important to note that the latest technological breakthrough is not always the one that will make the biggest difference in the field. Due diligence is essential in identifying what will and won’t work. It is this combination of knowledge and continuous critical thinking that allows us to be truly effective.
Isn’t the issue of human resources particularly difficult in a group that operates in different countries and is made up of local teams?
ML: Our employees in Romania are Romanians, our employees in Ukraine are Ukrainian, and so on. This approach works very well, especially because we maintain the same standards and policies across all the countries where we operate. HR rules, health and safety regulations, and financial rules are consistent everywhere. There is no difference from one country to another. This consistency is a key strength that applies universally across all our operations.
AS: Moreover, we make a conscious effort to facilitate communication between countries, even when the projects differ greatly. Ideas, proposals, and solutions are actively exchanged across teams. Our employees are confident that, even when major challenges arise, a solution is always available within Expert Petroleum.
How do you recruit local teams capable of meeting your requirements and processes?
ML: We operate in countries with long-established oil and gas industry, so there is already a skilled workforce available. Our goal is to place the right person in the right position, starting with the top management. We ensure that they are proficient in English and provide training in all key areas. While this process may seem challenging, it typically doesn’t take long. In Ukraine, for example, assembling the top management team took about a week, and they have remained in place despite the difficult circumstances the country has faced.
AS: Given that we ensure smooth exchanges between countries and projects, English plays a crucial role, and our teams recognize its importance for effective collaboration. They understand that being able to work in English is essential for fully tapping into their potential. As a result, when it comes to improving communication, everyone is highly motivated.
XP seems to make a great deal of the environmental aspect. Can we really talk about this in a sector that is so emblematic of global warming?
ML: The creation of Expert Petroleum and our focus on environmental issues are not driven by global environmental trends or awareness. When we begin operations in a country, our goal is to make it a cleaner place. We do this by repairing leaks and cleaning up land that may have been contaminated by hydrocarbons. Our efforts are noticed by the local populations, who see significant improvements in their immediate environment. We closely monitor any leaks and repair them as soon as they are detected, which not only helps preserve the environment but also ensures the continued profitability of resource extraction.
A few years ago, we took this commitment further by launching XP Upgreen, a new branch dedicated to reporting and reducing the environmental footprint of oil and gas operations. We quickly secured a significant contract, underscoring the growing importance of sustainability. As Exploration and Production companies are increasingly required to comply with stricter European regulations, the environmental aspect of our work is here to stay.
AS: Working with very old fields presents specific challenges. These fields have been in production for a long time, and much of the equipment—if not most of it—was commissioned years ago and is now in urgent need of maintenance and upgrades. Our challenge lies in improving performance with equipment that was already outdated from the start. Thanks to more efficient equipment, designed in particular to comply with the most stringent environmental standards, the entire production process is becoming more virtuous.
All the photos in the article are provided by the company(s) mentioned in the article and are used with permission.
