Lukoil announced it signed an exploration and production agreement with Petroleos Mexicanos, known also as Pemex. Russian news agency RT reported Monday it's the first such deal since the Mexican government last year broke the oil company's 75-year-old monopoly.
RT reported Lukoil is taking a risk by trying to expand to the Latin American market, where it could face problems with gaining a foothold in the regional supply market.
The deal was signed on the sidelines of the World Economic Forum in Davos, Switzerland, last week.
Mexican legislators in December approved a measure to open the energy sector up to private investors.
Mexican President Enrique Pena Nieto outlined his privatization proposal in August to revive the oil and natural gas sector by bringing in more foreign investments.
The U.S. Energy Department's Energy Information Administration reported Mexican oil production declined 2004-09 because of natural maturation.