Mexico’s troubled state oil firm Pemex announced a deal with US private equity fund KKR whereby Pemex will sell some of its infrastructure assets for $1.2bn but then lease them back, according to Reuters.
Among the assets covered in the deal are pipelines, subsea cables, non-drilling platforms and a gas-compression facility.
Ideally, Pemex would then buy back the assets after the lease period.
Pemex, properly known as Petroleos Mexicanos, has been under-performing for years and is in the process of shedding its seven-decade monopoly position in Mexican oil production as part of the government’s reform of the energy sector, which began in 2013.
Bidding for oil site leasing rights has been opened up to private and foreign bidders, ending Pemex’s privileged position.
Pemex’s budget has been slashed by $5.4bn for 2016. Earlier this month the company put on offer an $11bn stake in the Trion field in the Gulf of Mexico.
New York City-based KKR (Kohlberg, Kravis, Roberts) is a multinational private equity firm specializing in leveraged buyouts.