Repsol to align with Pemex on downstream work in Americas, Spain, Portugal
By ENZA TEDESCO
Spain-based Repsol said Wednesday it signed a strategic industrial alliance with Petroleos Mexicanos, or Pemex, for 10 years, looking for synergies and profits in the short and medium term.
In a filing to the Spanish stock market regulator, the company said the accord confirms a preliminary agreement reached at the end of January, according to which Pemex's stake in Repsol won't fall below 5% and won't exceed 10%.
The agreement involves cooperation in upstream operations and liquefied natural gas in the Americas and downstream operations in the Americas, Spain and Portugal.
However, under the agreement, Pemex could opt to cut its stake in the Spanish oil company below 5% one year after signing the agreement, in which case Repsol could dissolve the alliance.
Tuesday's agreement comes after the two companies fought a boardroom battle in which Pemex sided with Repsol shareholder Sacyr-Vallehermoso over top Repsol officials.
Dow Jones Newswires
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