LONDON (Alliance News) - The UK government Thursday signed numerous memorandums with the President of Mexico in relation to strengthening co-operation relating to energy between the two countries.
In addition, both BP PLC and Royal Dutch Shell PLC have signed an agreement with the Mexican government in an attempt to try and stimulate Mexico's oil and gas supply chain.
Mexico?s energy system is undergoing significant reform and Mexican President Peña Nieto visited Aberdeen on Wednesday to speak to energy leaders across the business and education sectors, as well as signing agreements with the UK government for greater collaboration in the areas of energy and climate change.
UK Energy Minister Matthew Hancock said the government of Mexico is expecting USD50 billion of investment by 2018 in the wake of the country's energy reforms aimed at boosting the economy whilst rejuvenating production, and added that the UK's "wealth of experience" offers "unparalleled opportunities" for partnerships between the two countries.
"The UK has much to offer. Our oil and gas industry is seen as the gold standard across the globe with an exemplary safety record and cutting edge innovation in some of the most challenging conditions in the world," said Hancock.
Whilst in Aberdeen, President Nieto also met Secretary of State for Scotland Alistair Carmichael and senior representatives of UK oil and gas companies, including oil giants BP and Shell.
According to a statement from the Department of Energy and Climate Change, both BP and Shell have signed an agreement this week with Mexico?s investment promotion agency, ProMexico, to stimulate Mexico?s oil and gas supply chain.
"The memorandums with Mexico I signed in Aberdeen today are a further helpful step for the industry as it looks to deliver services in overseas markets. Mexico is a key partner in this and the recognition of our industry and academic skills are important for both countries as they work together for mutual benefit," said Carmichael on Thursday.
The UK and Mexican governments will also work together to tackle climate change, and work together toward a "global deal" at "crunch climate talks" due to be held in Paris toward the end of 2015, said Hancock.
In addition, a demonstration of the Mexico 2050 Calculator was held, which is a "user-friendly model that allows you to explore different scenarios and mitigation options to 2050 that helps plan the country's energy system," it said.
The 2050 Calculator was jointly developed between Mexico and the UK, and is based on the UK's 2050 Calculator.
"This is why it is important that, through tools like the 2050 Calculator, Mexico and the UK are able to plan and communicate to the public the need to go low-carbon and avoid the worst effects of climate change," said Hancock.
BP shares were down 0.8% to 449.05 pence per share on Friday morning whilst Shell shares were down 0.5% to 2,030.00 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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