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A contract signed between Canada’s oil company and Mexico’s energy company may strengthen relationship between the two countries. According to this, both the firms would share technologies, expertise, and research.
A deal between Nexen Inc., a gas and oil firm based in Calgary (Canada), and Pemex, an energy company run by the state in Mexico, might be a sign of growing healthy relationship between Canada and Mexico, according to news published by Embassymag. As per the contract, both the companies will work together on production and exploration activities, and also share technologies, researches and expertise.
The Mexican President, Felipe Calderon, has brought about major improvements in the country’s energy industry. And due to this, the international investors are seeking to enter the market, but this may not happen at least for some few years. The government is seeking to concentrate more on the state-run sectors at the moment, instead of furthering the growth in the energy sector and opening it to oil industries. The Mexican government is doing so to give Pemex enough freedom to work with the foreign companies run by states.
At present, there are over 12 Billion barrels and over 14.5 Trillion cubic feet of proven oil reserves and natural gas reserves respectively. Previously, in March this year, Canada and the government in Alberta had signed an energy deal. The Albertan government said that a minimum of 25 enterprises from the region are working in Mexico in areas such as energy pipeline, drilling and service sectors. According to the some researchers, the two main areas that define the relationship between Canada and Mexico are mining; there are almost 300 mining industries from Canada in Mexico; and agriculture.
As per Alberto Amador Leal, Energy Commission and Institutional Revolutionary’s member, President Calderon is supporting deals allowing the international companies to give them technical help for drilling deep-water oil wells without providing them any rights to the crude stuffs in Mexico. Bloomberg published this news.
A Senior Research Analyst at RNCOS opined, “The energy industry in Mexico is rich, as it has many resources. But the government has not yet been able to make profits out of it. These deals should help the country to grow its energy sector. Mexico’s energy industry faces a big challenge- the constitutional ban for 70 years on direct private investments in its energy industries. And this is also stopping the foreign investments in the country. But now, the new government has done away with the ban”
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