Partnership marks first foreign investment in Pemex midstream asset
BlackRock expands its presence in Mexico to include local
infrastructure investing capabilities
First Reserve extends its Mexican energy infrastructure investment
footprint
NEW YORK & MEXICO CITY & GREENWICH, Conn. & LONDON--(BUSINESS WIRE)--
BlackRock and First Reserve have entered into a definitive agreement
with P.M.I., a wholly owned subsidiary of Petroleos Mexicanos (“PEMEX”),
to acquire approximately forty-five percent equity interest in two
natural gas pipelines, Los Ramones Phase II North and Los Ramones Phase
II South (together the “Los Ramones II Projects”). Upon closing, these
will be the first major PEMEX-sponsored midstream assets to be built in
partnership with foreign capital since the approval of Mexico’s historic
Constitutional Energy Reform in 2013.
The Los Ramones II Projects consist of the construction and operation of
744km of natural gas pipelines which will serve as critical energy
infrastructure and is part of a broader initiative to transport
abundant, natural gas from the Eagle Ford shale in South Texas to meet
central Mexico’s growing demand for natural gas. Construction of the
Projects began in 2014, with full commercial operations expected in
mid-2016.
This transaction represents the first infrastructure investment for
BlackRock in Mexico. BlackRock intends to establish a local
infrastructure investment platform in Mexico, leveraging its global
infrastructure investing capabilities and its existing Latin American
business. BlackRock Infrastructure currently manages over $6 billion of
invested and committed assets globally.
The investment will expand First Reserve’s existing Mexican
infrastructure investment footprint. First Reserve is the largest global
private equity and infrastructure investment firm exclusively focused on
energy with over $4 billion dedicated to energy infrastructure
opportunities worldwide.
CEO of Pemex, Emilio Lozoya, noted that with this investment by two
reputable financial firms, the Energy Reform becomes a step closer to
materializing into an economic driver for the country. He also mentioned
that this project shows that international investors have confidence
that the changes propelled by President Enrique Pena Nieto are
delivering benefits to the Mexican people.
“Private sector participation in infrastructure is going to be crucial
in Mexico and around the globe – I’m excited about prospects in Mexico
for BlackRock and our clients, and we are pleased to partner with PEMEX
on these initial projects,” said Jim Barry, Global Head of BlackRock
Infrastructure Investment Group. “The opportunity for infrastructure in
Mexico given recent reforms, positive demographics and economic
stability and resilience in Mexico has definitely drawn our attention
and we look forward to exploring other opportunities in the near future.”
William Macaulay, Chairman and Co-CEO of First Reserve, commented, “As
global investors in both Mexican energy infrastructure as well as
throughout the energy infrastructure value chain worldwide, First
Reserve is excited to announce this important partnership with Pemex. We
are supportive of the Mexican government’s focus on energy reforms and
believe the Los Ramones projects will be a cornerstone to these efforts.
We anticipate the relationship with Pemex will be fruitful for both our
organizations and look forward to continuing to broaden our exposure to
the Mexican energy market.”
"There are incredible economic and social changes taking place in
Mexico, which are positioning the country for strong, long-term economic
growth and we are excited to grow our footprint in the country,” said
Armando Senra, head of Latin America & Iberia at BlackRock. “Building
upon the well-established track record of our business in Mexico, an
expansion of our infrastructure investment footprint will offer
BlackRock’s local and international clients access to previously
untapped investment opportunities.”
Mark Florian, Managing Director and Head of Infrastructure Funds for
First Reserve added, “For First Reserve, this investment is a
continuation of our model of working with strong counterparties under
long-term capacity contracts on behalf of our investors. We value our
direct relationship with Pemex and are pleased to be partnering together
to contribute to the expansion of Mexican energy infrastructure, which
should drive substantial benefits for the broader Mexican economy.”
Both Projects will benefit from a 25 year take-or-pay Transport Services
Agreement (“TSA”) with Pemex Gas y Petroquímica Básica (“PGPB”).
Transaction closing is contingent upon required anti-trust and other
regulatory approvals.
BNP Paribas and Santander acted as advisors to the syndicate of banks
providing project finance to Los Ramones Phase II South. Santander also
acted as underwriter for debt financing of 80% of construction costs in
Los Ramones Phase II North.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide.
At December 31, 2014, BlackRock’s AUM was $4.652
trillion. BlackRock helps clients meet their goals and overcome
challenges with a range of products that include separate accounts,
mutual funds, iShares® (exchange-traded funds), and other pooled
investment vehicles. BlackRock also offers risk management, advisory and
enterprise investment system services to a broad base of institutional
investors through BlackRock Solutions®. Headquartered in New York City,
as of December 31, 2014, the firm had approximately 12,200 employees in
more than 30 countries and a major presence in key global markets,
including North and South America, Europe, Asia, Australia and
the Middle East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com |
Twitter: @blackrock_news | Blog:www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock
BlackRock Mexico
BlackRock has $109 billion in investments and 100+ employees dedicated
to Latin America with offices in Mexico, Brazil, Chile and Colombia. The
firm’s Mexico office consists of a 27 person team who deliver the firm’s
institutional and wealth clients a comprehensive range of local and
international investment solutions and services across asset classes,
geographies and investment strategies.
BlackRock Infrastructure
BlackRock, the largest investment manager in the world with $4.65
trillion of AUM, sits at the intersection of global capital and
infrastructure investing opportunities. With deep industry expertise,
demonstrated access to proprietary deals and a purely fiduciary mindset,
our experienced investment professionals leverage BlackRock’s
unparalleled risk management capabilities and global reach to deliver
compelling investment opportunities to meet our clients’ needs.
BlackRock provides investors with infrastructure equity and debt
investments via Funds, Co-Investments, Managed Accounts and Multi
Manager strategies and currently has $6 billion in invested and
committed assets. Our team of 50 professionals is based in New York,
London, Dublin, Paris and Zurich.
About First Reserve
First Reserve is the largest global private equity and infrastructure
investment firm exclusively focused on energy. With over 30 years of
industry insight, investment expertise and operational excellence, the
Firm has cultivated an enduring network of global relationships and
raised more than USD $30 billion of aggregate capital since inception.
Putting these to work, First Reserve has completed more than 550
transactions (including platform investments and add-on acquisitions) on
six continents. Its portfolio companies span the energy spectrum from
upstream oil and gas to midstream and downstream, including resources,
equipment and services and infrastructure. Visit us at www.firstreserve.com
for more information.
Media Inquiries:
BlackRock
New York
Tara
McDonnell, 212-810-5337
BlackRock
Tara.McDonnell@blackrock.com
or
Mexico
City
Anabel Lopez
Burson·Marsteller
Anabel.Lopez@bm.com
or
First
Reserve
Caroline Harris-Gibson, 212-279-3115 ext. 222
Prosek
Partners
cgibson@prosek.com
Source: BlackRock