Northcote and its joint venture partner Gaia Ecologica have invested in their first new facility as they look to expand their reach in Mexico’s energy sector.
The companies purchased a 22-acre property for the development of an environmental waste remediation facility based in the southern state of Tabasco.
The strategic location of the base means it could benefit from the considerable activity being undertaken in the region by Mexican state-owned Pemex.
Oil fields services will be provided to both onshore and offshore wells at the facility, which will also be used to recycle oil cuttings.
Northcote managing director Randall J Connally said: “This is the first exciting step towards building what we believe will become a substantial, revenue generative business focused on supporting the increased activity in Mexico’s energy sector which is expected over the coming years.
“We are delighted to be aligned with Gaia Ecologica which brings 17 years of experience in the environmental remediation and drilling fluids businesses in Mexico to the table.
“We plan to deliver an integrated service which will ultimately provide oil cutting and waste water recycling, provision of oil based drilling mud and other services.
“The opportunity in Mexico is vast and as foreign investment increases, we are excited to be delivering on our strategy to develop services which will be critical to support increased drilling activity and further we are exploring the possibility of entering directly into the process of securing concessions directly, along with our partner Gaia.
“We look forward to providing updates on our progress in due course.”
As part of the move, and in line with original joint venture framework, Northcote said it had already advanced $125,000 to Gaia Ecologica pursuant to a letter of intent to develop the facility.
Northcote said it expects the facility to support higher levels of future drilling activity in the region which is predicted as Mexican provides further opportunities for foreign investment.
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