Singapore-listed oilfield supply and services provider KS Energy is tying up with Mexican conglomerate Empresas ICA to set up a joint venture, which will provide drilling services and heavy capital equipment for Mexico's offshore oil and gas exploration market.

The two firms signed a Memorandum of Agreement to establish the venture, KS Energy said in a statement on Monday.

The joint venture entity will be jointly owned by ICA and KS Drilling, an 80 per cent-owned subsidiary of KS Energy.

The venture is expected to initially require two new high specification jack-up drilling rigs valued at about US$240 million (S$299 million) each, KS Energy said.

"This is only the start for our joint venture entity and a new milestone for KS Drilling," said Mr Kris Wiluan, KS Energy's executive chairman and chief executive officer.

"We are confident that there are many more opportunities where, together with ICA, we can offer our drilling capabilities to the oil and gas industry in Mexico," he added.

Founded in 1947, ICA is Mexico's leading construction and infrastructure operation company. It is engaged in the construction, infrastructure, concession and homebuilding markets in Mexico and Latin America.