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ONGC Videsh Ltd signs pact with Petroleos Mexicanos

The memorandum of understanding (MoU) was signed by ONGC Videsh Ltd Director (Exploration) Anil Bhandari and Pemex Exploracion Y Produccion Director-General Gustavo Hernandez Garcia at Cancun, Mexico, on the sidelines of World National Oil Companies Congress-Americas.

The MoU was signed in the presence of Emilio Lozoya, the chief executive officer of Pemex. ‘Under the memorandum of understanding, the two companies plan to discuss future cooperation and collaboration in the upstream sector in Mexico. The memorandum of understandingalso envisages cooperation in the fields of technology, human resources, research and development,’ ONGC Videsh Ltd said in a statement.

Mexico is the largest crude oil producing country in Latin America. It has excellent potential for both conventional and unconventional hydrocarbon. As a result of recent energy reforms in the country, the oil and gas sector is being opened for participation by foreign firms.

Besides OVL, India’s largest private sector company Reliance Industries Ltd (RIL), too, is looking to invest in Mexico as North America’s third-biggest producer courts foreign companies after a 76-year hiatus. In December Mexico permitted private investment in the oil industry to help reverse a decade-long slump in output.

Pemex plans to establish 10 joint ventures (JVs) in mature, onshore and offshore areas by December 2015. It has fields holding an estimated 20.6 billion barrels.

OVL has participation in 35 projects in 16 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.

It currently produces about 160,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of 637 million tonnes of oil equivalent. During the financial year ended 31 March 2014, the ONGC Group produced 59.20 million tonnes of oil and oil equivalent gas (mmtoe) (approximately
1.2 mmboe per day).
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