The largest energy-centered private equity firm, Riverstone Holdings Ltd., is negotiating with oil executive Miguel Galuccio to create a global initiative according to an insider with knowledge of the deal who has requested to remain anonymous.
Galuccio and Riverstone are now in negotiations with international investors and sovereign-wealth funds that are seeking opportunities in the energy sector according to Bloomberg’s anonymous source. Their goal is to seek energy investments in lucrative markets such as Mexico.
The Mexican government is moving ahead with its plans to reform its energy market. After 75 years of monopoly, reforms will loosen the iron grip Pemex has had on Mexico’s energy sector. Their burgeoning market is rich in oil and gas reserves which can be developed through advanced technology and processes.
Riverstone, under the leadership of founders Pierre Lapeyre and David Leuschen (http://www.tuck.dartmouth.edu/news/articles/an-uncommon-energy), is already a well-known competitor in Mexico’s energy sector, is set to reap the benefits of its insights. Through capital investments in the Gulf of Mexico made through companies such as Fieldwood Energy. Furthermore, they have raised a farther 750 million dollars from local pension funds. Making them the ideal partner for oil executive Galuccio.
Galuccio was the chief executive officer at Argentina’s YPF_SA until YPF_SA where he helped transform Argentina into the world’s largest shale producer outside the US. He worked with Chevron Corp. Dow Chemical Corp., and Petroliam Nasional Bhd. To exploit the Vaca Muerta deposit.
Furthermore, he spent 13 years working at Schlumberger where he created a production model in Latin America. Galuccio was instrumental during his stint at Schlumberger in Mexico in launching new incentivized services (CIEP) that helped open Mexico’s oil and gas sector to private capital.
In December, Mexico exceeded all expectations in their first deep-water oil auction awarding 8 out of 10 blocks to companies such as Chevron Corp and Exon Mobile ushering in a new era for Latin America’s second-largest economy.