OREANDA-NEWS. June 21, 2013. State-owned Petroleos Mexicanos, or Pemex, signed two agreements with Chinese firms covering ships, equipment and technology for Mexico's oil industry.

The state-owned oil giant said in a statement that Pemex CEO Emilio Lozoya signed the agreements on Tuesday during Chinese President Xi Jinping's visit to Mexico.

Under the terms of the first agreement, state-owned Export-Import Bank of China will provide a \\$1 billion line of credit "for the acquisition of ships and equipment for offshore maritime activities", Pemex said.

The line of credit includes an option for financing the overhaul of the Pemex fleet, as well as the modernization of maritime equipment, the state-owned oil giant said.

The agreement "will have a term of three years and represents the first contact with this institution", Pemex said.

The second agreement will be governed by a memorandum of understanding signed by Pemex and Xinxing Cathay International Group April 6 in the Chinese city of Saya and aims to "identify options for joint work in the area of pipelines", Pemex said.

Pemex, the world's No. 5 oil producer, is the biggest contributor to Mexico's federal budget and is one of the few oil firms worldwide that handles all aspects of the production chain, from exploration to distribution and the marketing of end products.