MUMBAI: Billionaire Mukesh
Ambani-led Reliance Industries (RIL) has entered into a pact with Mexico's
national oil company Petroleos Mexicanos (Pemex) to explore upstream oil and
gas business opportunities in that country, the Indian energy conglomerate said
on Friday.
The deal will give RILBSE -0.09 % a
gateway into Mexico, the 10th-largest crude producer in the world. RIL has
faced issues relating to gas pricing for its output from the Krishna-Godavari
basin which has also been declining. Therefore, the company is looking at new
opportunities including geographical diversification, according to people aware
of the strategy.
"RIL's cooperation with Pemex
is in line with its growth strategy to explore opportunities to expand its
international asset base in regimes having internationally attractive
competitive terms. The company hopes to leverage its organisational
capabilities and expertise to create long-term value for exploration and
production business and for RIL on the whole," the company said in a
statement.
"RIL's cooperation with Pemex
is in line with its growth strategy to explore opportunities to expand its international
asset base in regimes having internationally attractive competitive terms. The
company hopes to leverage its organisational capabilities and expertise to
create long-term value for exploration and production business and for RIL on
the whole," the company said in a statement.
Mexico is in the process of
reforming its energy sector and is inviting partners to end the monopoly of
Pemex to boost the sector. Prior to this, in September, Pemex had signed a pact
with ONGC Videsh, the overseas arm of staterun ONGC, to jointly explore
opportunities in Mexico.
According to the agreement, RIL and
Pemex will assess potential upstream oil and gas business opportunities in
Mexico and jointly evaluate value-added opportunities in international markets.
The two companies will also share expertise and skills in the relevant areas of
the oil and gas industry, including deep-water oil and gas exploration and
production.
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