[Context: On September 25, Citla Energy, backed by ACON Investments and the China-Mexico Fund, announced signing three E&P contracts in Mexican shallow waters with other upstream operators. Further details and related links are below.]
Citla Energy signs three contracts for hydrocarbon exploration and production in Mexican shallow waters
Mexico City, September 25, 2017. Citla Energy (“Citla” or “the Company”), an independent Mexican oil & gas exploration and production company, announced that it has signed three hydrocarbon exploration and production contracts as part of Mexican Round 2.1.
The blocks were awarded under production sharing contracts with a duration of up to 40 years (30 years plus two 5 year extensions) and are located in the south east of the Gulf of Mexico, one of the most prolific and under explored shallow water basins in the world, covering ca. 1,500km2, in water depths of 100-500 meters and approximately 50 kilometers offshore, in good proximity to Pemex’s existing infrastructure and close to areas where recent significant discoveries have been announced. The contracts Citla has signed are associated with the following blocks in consortiums with ENI of Italy and Cairn Energy PLC:
o Block 7: Citla (25%), ENI (45%, operator), Cairn (30%)
o Block 9: Citla (35%), Cairn (65%, operator)
o Block 14: Citla (40%), ENI (60% operator),
Citla’s success in Round 2.1 is a major step towards the Company’s strategy to build a robust portfolio of highly selected offshore and onshore assets in Mexico through active participation in the Mexican Energy Reform, both independently and in partnership with other industry participants. With these contract awards, Citla has strengthened its position as a leading local player in the nascent Mexican oil & gas industry and as an institutional partner of choice for a select group of international oil and gas operators.
Citla is an independent Mexican oil and gas company founded in 2015, with strong institutional investors led by the International Finance Corporation (IFC), a member of the World Bank Group, and by ACON Investments, including capital from the China Mexico Fund and some of the largest Mexican pension funds.
Alberto Galvis, CEO of Citla said, “Signature of these contracts is a fundamental milestone in our business plan. We are proud and optimistic being part of the partnership we formed with high quality operators such as ENI and Cairn. We are excited about both the potential of these assets and the Mexican Energy Reform in general and look forward to working together with our partners in developing these and other assets in the future”.
Citla Energy is a Mexican independent exploration and production company. With offices in Mexico City and Houston, Citla is an active participant in the opening of Mexico’s oil & gas sector, where it is building a portfolio of selected onshore and offshore assets both independently and in partnership with other industry participants.
About ACON Investments
ACON Investments, L.L.C. is a Washington, DC-based international private equity investment firm that manages private equity funds and special purpose partnerships that make investments in the United States and Latin America. Founded in 1996, ACON has responsibility for managing approximately $5.5 billion of capital. ACON has professionals in Washington, DC, Los Angeles, Mexico City, São Paulo and Bogotá. Its portfolio firms employ approximately 43,000 globally.
About China-Mexico Fund
The China-Mexico Fund is a $1.2 billion fund managed by the IFC Asset Management Company which aims to support the reforms introduced in Mexico by the Government. The Fund makes equity, equity-like and mezzanine investments mainly in infrastructure, oil and gas and in other sectors, including manufacturing, agribusiness, services and banking.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most.