Reliance Industries has signed a deal with Mexico’s national oil company Petroleos Mexicanos to explore oil and gas opportunities and expand its international asset base.
Reliance, led by Mukesh Ambani, and Pemex will also explore international markets for “value added opportunities”, RIL said in a statement.
Reliance and Pemex will also share expertise and skills in the relevant areas of oil and gas industry including for deep-water oil and gas exploration and production.
The pact envisages sharing of RIL’s pioneering expertise in deepwater development and best practices in east coast of India and RIL’s experience in shale gas in the US. RIL will also provide technical support and share experience with Pemex for refining value maximisation and other technical optimisation strategies.
“RIL and Pemex will also collaborate to exchange experiences on environmental and social responsibility front. The signing of the MoU marks further strengthening of the long standing relationship between RIL and Pemex,” RIL said.
“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 statement said.
RIL has already tasted success in North America with its three shale gas and liquid assets in the US, which are the main contributors to its upstream hydrocarbons exploration and production business at present.
Simultaneously, earnings from its Indian oil and gas business have been steadily declining for a few years now as gas output from its flagship D6 reservoir in the Krishna-Godavari Basin has been on a decline. The Indian oil and gas business has also been mired in controversy and litigation with frequent run-ins with the government on issues like cost recovery and gas pricing.
This is the second partnership announced by RIL in the Americas, with the first one being in Venezuela, where the company had signed a similar understanding Petroleos de Venezuela in October 2013.