Mexico's oil company Pemex along with Spain's Sacyr-Vallehermoso have increased their share in Spain's Repsol, an oil and gas company to 9.5%.

The oil company, Pemex has already 4.88% stake in Repsol and has announced that it has purchased 4.62% shares which would cost them 1.2 billion euros ($1.7 billion) and the investment would be done through issuing debt.

The mutual agreement between Pemex and Sacyr has notified that both the companies will organize their shares and the decisions over Repsol Sacyr-Vallehermoso would be taken by conducting polls.

The companies will be maintaining their stake in Repsol by less than 30%, as in case they exceed that limit then they will be bound to purchase a great share of Repsol.

The shares of Repsol ended at 19.795 euros.

The planning ministry department of Argentina will call up a meeting, where the head officials of the three companies will participate "to explain whether this ownership change will impact or alter investment or production plans ... at YPF".

Argentina has been facing a downtrend in the oil and gas production and the government will have to increase the investment to bring back stability.