Pacific Radiance has decided to transfer its Mexico operations to a joint venture with Axis Capital Management, as it looks to bolster its presence in the region.
The Singapore-listed company has clinched a deal that will see Navigatis Radiance – its JV with Axis – take control of the company’s ship management and vessel leasing operations in the region.
Pac Rad’s partner has pledged to invest up to $40m in the joint company.
Pang Yoke Min, executive chairman of Pac Rad, said: “Navigatis Radiance, with its enlarged operations and balance sheet as well as a modern and efficient fleet of support vessels will sharpen our overall competitive edge in the Gulf of Mexico.”
Mexico has made an opening to the private sector as it looks to exploit its hydrocarbon resources.
Pang said: “We are positive on the long-term prospects which are being driven by the government efforts to quickly liberalise Mexico’s energy market.
“Our JV is expected to grow with the pickup in E&P activity in the Gulf of Mexico now that foreign companies are allowed greater participation to develop the country’s large and potentially accessible hydrocarbon resources.”