Mumbai, Dec. 5: Reliance Industries (RIL) has signed an oil exploration-to-refining deal with Mexico's Petroleos Mexicanos (Pemex) as it looks at overseas opportunities to overcome disenchantment back home.

Under a memorandum of understanding (MoU) signed by the companies, the duo will assess potential reserves in Mexico and tap the international markets for value-added opportunities.

Reliance and Pemex will also exchange expertise and skills, including in deep-water exploration and production. According to RIL, its cooperation with Pemex is part of a strategy to expand its international asset base in countries offering attractive business terms.

RIL's tie-up with Pemex comes after ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation, entered into a similar arrangement with the Latin American company.

Mexico is the largest crude producing country in Latin America and the tenth-largest globally.

The nation recently opened up its oil and gas sector, allowing participation by foreign firms. It permitted private investment in the industry to help reverse a decade-long drop in output.

Pemex plans to establish 10 joint ventures in mature, onshore and offshore areas by December next year. It has fields holding an estimated 20.6 billion barrels of reserves.

RIL, which entered the oil and gas business in the 1990s, is re-orienting its hydrocarbon business after encountering several challenges.

Out of the 45 oil and gas exploration areas or blocks it acquired in India since 1999, Reliance has surrendered as many as 38 after having sunk $2.09 billion. In spite of 52 oil and gas discoveries since 2002, it has managed to bring only three into production to date as it ran into regulatory hurdles, pricing and cost recovery disputes and delays in getting critical approvals.

RIL is, therefore, looking for opportunities overseas - from Myanmar to Mexico. In May this year, it bagged two shallow water blocks in Myanmar and is in talks to take properties in Venezuela, Brazil and Gulf of Mexico.