The state-run oil giant has taken a 51% slice in Barreras shipyard, confirming reports earlier this year that the deal was imminent.

Mexico City-headquartered Pemex said the deal was aimed at reviving the Spanish shipbuilding industry as well as servicing the Mexican oil industry.

Spanish daily El Pais reported before the summer that Pemex was considering signing a letter of intent to take the 51% stake in Barreras.

Pemex said last September its PMI unit had signed two contracts for flotels, one to be built at the Hijos de J Barreras shipyard in Vigo and state-owned yard Navantia in north-western Spain. The reported value at the time was $392 million.

The company added last year that it also planned to contract 14 tugs, seven to be built in Galicia and seven in Mexican yards.

The plans are part of a broader programme of at least $800 million for the company to revamp its fleet.

On 15 April, Mexican president Enrique Pena Nieto and Galician government president Alberto Nunez Feijoo met to “strengthen a strategic alliance” between the two entities with an eye to investment of up to $240 million in the state oil company’s fleet, according to Galicia.

The arrangement could help lead to the contracting of new vessels, Conde said at the time.

Founded in 1892, the Barreras shipyard is mainly concerned with the construction of offshore vessels, ferries and roll on-roll off vessels.

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