Mexico's state oil monopoly Petroleos Mexicanos has signed an agreement with the Navy Secretariat for the construction of tugboats, barges and other vessels in its fleet.

"The agreement is part of Pemex's strategy to promote the development of Mexican shipyards in order to strengthen the national naval shipbuilding industry," the company said in a press release.

"The letter of intent signed Friday is aimed at renewing (Pemex's) so-called 'minor fleet' in the coming years," the company said.

Navy Secretary Francisco Saynez and Pemex CEO Juan Jose Suarez Coppel inked the deal. EFE