Repsol YPF, and Petróleos Mexicanos said Wednesday they entered into a term-sheet by virtue of which they commit “to negotiate an industrial strategic alliance that will contribute to the better development of their respective strategic plans and that will establish channels for mutual collaboration.”
The main rules that would govern the alliance include it being “based on the principles of reciprocity, benefit and mutual collaboration, long-term basis and non-exclusivity.”
Additionally they said, “The scope of the Alliance will cover the Upstream and GNL business in America and the Downstream business in America, Spain and Portugal. Each party will evaluate offering to the other party the business opportunities that may arise.”
The companies said that within the constitutional and legal framework that regulates the oil and gas sector in Mexico, Pemex will have Repsol as allied partner, in the terms of the Alliance, for evaluating and promoting those business opportunities that may be of interest for both parties.
To promote and monitor the alliance, there will be a Strategic Committee, an Upstream and GNL Committee and a Downstream Committee. Pemex and Repsol will be represented equally in all of the Committees which will have consultation and reporting functions, the companies said.
Pemex said that it renews its commitment with Repsol ensuring the stability of its shareholding (which will not be reduced below 5% nor increased over 10% of the share capital) and its support to the strategic plan and the current governing structure of Repsol.
The alliance will have an initial term of 10 years.
The development and execution of the negotiation process provided under the term-sheet are subject to the fulfilment of the relevant internal procedures established in the appropriate internal rules for the approval of a strategic alliance and, specifically, to its approval by the relevant corporate bodies.