Petroleos Mexicanos (PEMEX) will have access to a credit line of $1 billion from China's Export-Import Bank to buy vessels and offshore oilfield equipment, the company announced Tuesday after signing the agreement with the bank.
PEMEX stated that this loan is an important financing option for the renewal of its fleet and the modernization of its marine equipment in its exploration and production division. The loan is valid for three years.
The agreement will back about $1.2 billion in the U.S. exports for projects that include the Cantarell oil field, new exploration and production development, and a new gas development program. It is estimated that about $200 million of funding for those three projects will be reserved for exports from small businesses.
This deal comes on the heels of PEMEX's April announcement that it will begin increasing exports to China by 30,000 barrels of oil per day. The two-year agreement between PEMEX and China's Sinopec was signed in January.
"This represents a landmark in the history of PEMEX, since it is the first long-term contract of its kind signed with a Chinese company," PEMEX Chief Executive Emilio Lozoya said at a press conference in China, reported Reuters.
The amount of exports to China could increase over time as part of the agreement.
Currently, PEMEX sends most of its oil to the United States. The company exported about 1.26 million barrels a day in 2012, according to the U.S. Energy Information Administration.
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