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Key Energy Services CEO Dick Alario. Image courtesy of Key Energy Services/Youtube.

Houston-based Key Energy Services won a two year well services contract with Mexico’s Pemex worth $48 million.

The company said Tuesday that work at Pemex sites began in October.

Key Energy will provide rigs, coiled tubing, nitrogen service, wire line and additional third party services.

The company expects to initially put two to three rigs to work but additional rigs can be mobilized if needed.

The contract includes an additional one year option with a maximum increase of 25 percent of the contract’s value.

“This is an important milestone for Key as we believe it’s indicative of the improvement of the oil and gas landscape in Mexico,” CEO Dick Alario said during an investor conference call.

In August the Mexican Congress passed sweeping reforms that opened up the country’s oil and gas industry to private investment.

The reforms ended the 75-year monopoly held by Mexico’s state-owned Pemex and was the center piece of President Enrique Peña Nieto’s economic agenda.

The legislation is meant to revive the country’s flagging energy industry and make it more competitive globally and in the Gulf of Mexico.

Key Energy posted a $62.2 million net loss in the third quarter, a significant spike over the $4.6 million third quarter loss reported last year.

Third quarter revenue also dropped from $389.6 million in 2013 to $365.7 million in 2014.

Some of the loses were connected to charges including a $16.1 million charge tied to a Foreign Corrupt Practices Act investigation and a $60.8 million asset impairment.

Key is currently being investigated by the Security and Exchange Commission and Department of Justice for alleged bribery in Mexico.