There are plans and talks underway that could unite two oil and energy giants that are looking to join forces in a new global energy venture according to a recent article on the Boomberg.com website. Miguel Galuccio, an oil executive and CEO with over twenty five years’ experience around the word and the largest energy private equity firm in the world, Riverside Holdings Ltd., under the leadership of founders David Leuschen and Pierre Lapeyre, are the two powerhouses said to be in private talks.
Both parties have their representatives talking with worldwide investors that would be interested in the opportunity to join this new venture in lucrative markets around the globe like Mexico and others.
Mexico is a very hot commodity in the energy market and Riverside is already aware of that. They have over 17% of their capital invested in the countries Gulf of Mexico region already and this latest move appears to show they like how the future looks there.
Galuccio is no stranger to operating energy production companies in that area either. The 48-year young CEO spent thirteen years in Latin America with Schlumberger. While overseeing operations Mexico when the country first began to open up to private capital and explode it’s production and growth.
The expectations in Mexico are high, for the first time in over a decade they are seeing an increase in oil production instead of continuous decline that has occurred. Recently companies like Exxon and Chevron have been awarded auction blocks for deep water drilling and production. A very positive sign and one that probably had an impact on the decision between Galuccio and Riverstone to join forces and inject the positive directions Mexico is going in with some expertise and capital.
For nearly seventy five years the Mexican oil market was monopolized by Mexican company Pemex. Now that the reserves are abundant and overflowing, it has opened the doors to eliminate that monopoly and bring in investors from around the globe. Riverstone has been apart of creating that abundance by producing over 85K barrels of oil per day in the shallow section of the Gulf of Mexico, making them the largest operator in that area.
When you combine the political reform and changes made by the Mexican government in the energy sector, with the abundance of reserves and production in the Gulf of Mexico, with Galuccio bringing in operational expertise and Riverside bringing global investment capital. This appears to be a very promising venture in the making. Stay tuned.