In Deep Waters: Reliance Industries Signs An Oil and Gas Exploration Pact With PEMEX
In Deep Waters: Reliance Industries Signs An Oil and Gas Exploration Pact With PEMEX
Reliance Industries has just signed an agreement with the Mexican state-owned PEMEX or Petroleos Mexicanos for cooperation in upstream oil as well as gas production along with the refining business. According to the MoU (Memorandum of Understanding): “RIL will cooperate with PEMEX for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value added opportunities in international markets,” an official company statement said.
In the Deep
RIL and PEMEX will also provide expertise and skills in important and relevant areas of the oil and gas industry. This includes exploration for deep water oil and gas exploration as well as production. “The MoU envisages sharing of RIL’s pioneering expertise in deep-water development and best practices in East Coast of India and RIL’s experience in shale gas in United States,” the official statement said. RIL also provides technical support along with shared expertise with PEMEX for refinement of value maximisation plus other technical optimisation strategies too. “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,” it also added.
Upstream: On A High
RIL indicated it has entered into the pact for the exploration of upstream oil and gas business opportunities in the nation.Mexico is currently the 10th biggest crude producer in the world. It is implementing sweeping reforms in the energy sector in a bid to revive it and this is leading to the end of state owned control here.
A Reuters report stated that the Mexican energy regulatory body seeks to gain USD 50 billion in investment through 2018 for stemming the long sliding crude production. Current production in Mexico is around 2.35 million barrels in a day.
Pemex on the Roll
Pemex has just signed a deal with RIL but it has been trying to expand its presence in India as well as other markets apart from the neighbouring US as well. Mexico’s oil giant says that India and China are the future markets for crude and it aims to move in this direction. It has signed an agreement in the month of September with ONGC Videsh Ltd, an overseas business unit of Indian state run ONGC for exploring opportunities in Mexican hydrocarbon sector.
"The deal, signed by Pemex CEO Emilio Lozoya and the (executive) director of Reliance Industries P.M.S. Prasad, also establishes that both companies will jointly explore business opportunities in diverse areas of the hydrocarbons chain, both in exploration and production as well as refining and industrial transformation," Financial Times has said.
Conclusion
While movements in the oil and gas sector will go a long way towards helping in resolution of the energy crisis, a lot rests on side by side development of the clean energy movement as well. However, as fossil fuels eventually deplete, renewable sources of energy will be a good step forward for humanity. Joint development is important, especially since the clean energy industry needs support at its nascent stage of evolution for the eventual resolution of the energy crisis.
