Petroleos Mexicanos, or Pemex, is seeking to expand its operations globally via a greater presence in Repsol, getting a bigger say in the Spanish oil company's management and gaining access to technology, production expertise, refining and marketing channels, a new report prepared by the state-owned oil monopoly says.

The report, "Contexto del Aumento de Participacion de Pemex en Repsol" (Context of the Increased Stake by Pemex in Repsol), to which Efe had access, lays out the Mexican company's strategy.

"The bigger stake in Repsol is part of Pemex's strategy in the international market and represents an opportunity to expand a relationship of more than 30 years," the report says.

The report, portions of which were recently published by the Jornada newspaper, notes that Pemex's business plan is looking at "bolstering the stake in Repsol along with other shareholders to improve the company's management and take advantage of new opportunities."

The business plan discusses Pemex's recent decision to increase its stake in Repsol from 4.8 percent to 9.8 percent and vote with Spain's Sacyr in a block, as well as the move to implement changes that will "promote its profitable international growth."

An alliance with Repsol will allow Pemex to gain access to seismic-imaging technology that would be useful in complex projects, such as the deepwater Chicontepec project, the report says.

A closer working relationship with the Spanish oil company will open the way for exchanges of personnel in similar fields and ensure Repsol's participation in new exploration and production projects, thanks to joint venture agreements, the report says.

Pemex will gain access to refining technology from Repsol, which has the capacity to process 800,000 barrels per day (bpd) of crude, as well as exploiting synergies in gas-fired cogeneration projects and other business opportunities.

An alliance, moreover, opens the way for the "possibility of reaching business agreements in the region that benefit both companies; for example, a swap of petroleum (products)," the report, which is dated Sept. 1, says.

Pemex could possibly gain access to addtional reserves and direct production via stakes in international projects in Colombia, the Gulf of Mexico and Brazil, among other areas, the report says.

The Mexican oil company expects to reduce its operating costs by $105 million annually in the areas of exploration, production and marketing, thanks to technology from Repsol.

An alliance with Repsol will allow Pemex to take advantage of synergies in refining Mexican crude instead of Russian petroleum, and in the production and sale of different grades of gasoline, the report says.

A larger stake in Repsol will open the way for Pemex to align its vision and interests with other shareholders, such as Sacyr, as well as to bolster its role as the sole oil company shareholder, assuring that in the event of a sale of the shares there will be "a greater possibility of earning a premium," the report says.

Pemex plans to spend up to $1.6 billion on the deal, with $600 million coming from its own resources and $1 billion from a bond issue, whose costs will be financed with Repsol dividends.

An expanded Repsol stake is a great opportunity because an alliance with a similar firm could require an investment of between $10 billion and $30 billion, the report says.

The business plan lays out other international strategic goals, including the acquisition and stockpiling of assets in the Americas to expand refining and storage capacity, especially in the United States, Pemex said.

Pemex plans to export crude to India and China, and it expects to open an office in Singapore and to sign agreements for the construction of oil tankers with South Korean shipyards to make this possible, the report says.