Riverstone, EnCap Investments, and Infraestructura Institucional are all part of a recent $525 million commitment to Sierra Oil & Gas S. de R.L. de C.V., Mexico’s first independent exploration and production company.
As part of the transaction, Riverstone and EnCap have each committed $225 million to the company, alongside Infraestructura Institucional, which is committing $75 million. Infraestructura Institucional is Mexico’s largest infrastructure private equity firm.
Additionally, all three investors have retained the option to double their existing commitment once the initial equity has been deployed.
Sierra, headquartered in Mexico City, is led by Ivan Sandrea an experienced oil executive. Sandrea has previously worked with Statoil, BP, OPEC and Energy Intelligence.
The company plans to participate in exploration, development and production optimization opportunities made possible by Mexico’s recent energy reform. Additionally Sierra may consider opportunities in hydrocarbon transportation, storage and processing.
Juan Alberto Léautaud, partner at Infraestructura Institucional, said of the deal -“for us in Infraestructura Institucional, the investment in Sierra represents an important opportunity for Mexico’s institutional capital, particularly the pension funds (Afores) that invest in our Development Capital Certificates (CKDs), to help finance the development of the nascent Mexican private energy sector by participating in the E&P projects unlocked by the energy reform. We are delighted to partner with such a strong management team and distinguished fellow investors in fully realising these opportunities.”