Pemex and First Reserve sign $1bn agreement for energy projects

Mexican oil company Pemex and US private equity firm First Reserve have signed a $1bn agreement to build energy infrastructure, transportation and processing projects.

In March, First Reserve and BlackRock secured a $900m joint stake in the second phase of Mexican pipeline project Los Ramones.

The country has recently opened the energy sector to attract investments.

First Reserve stated: "Pemex and First Reserve plan to invest capital in energy infrastructure projects throughout Mexico, combining the financing, structuring and industrial and operational experience needed to bring these critical projects to fruition.

"Through formal collaboration with Pemex, we feel we have gained substantial access to a region with strong supportive macro dynamics alongside a motivated and accomplished partner."

First Reserve also owns a wind-power project in Oaxaca, the southern state of Mexico.

This deal will enable Pemex to secure access to financing and exchange of technical and operational experience, reports The Wall Street Journal.

Since the country made changes to the energy laws, Pemex has been increasingly facing competition in oil and gas production for the first time in its almost 80-year history.

This year, the company cut this year’s budget by approximately $4bn due to a decline in global oil prices.