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
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:BlackRockNew YorkTara
McDonnell,
212-810-5337BlackRockTara.McDonnell@blackrock.comorMexico
CityAnabel LopezBurson·MarstellerAnabel.Lopez@bm.comorFirst
ReserveCaroline Harris-Gibson, 212-279-3115 ext. 222Prosek
Partnerscgibson@prosek.com
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