First Reserve lays down $1bn in joint venture with Petrofac


petrol-60714-mEnergy-focused private equity giant First Reserve has agreed to commit up to $1bn to a joint venture with the UK’s largest oil and gas company Petrofac.

First Reserve will provide 80 per cent of the total capital to PetroFirst Infrastructure Partners, which has already been tapped to pick up Petrofac’s floating production facilities in a $450m deal.

The firm said PIP would be used to pick up further assets from Petrofac’s Integrated Energy Services division as well as new energy infrastructure projects.

Bill Macaulay, First Reserve Chairman and CEO, said, “The creation of PIP represents an exciting opportunity to invest in energy infrastructure alongside a partner with a proven track record for project execution.

“The Fund will benefit from an investment in long-term contracted assets with strong support from Petrofac and its leading energy sector customers.”

Petrofac Group chief executive Ayman Asfari added, “We are seeing a clear shift in the industry to contracted and shared infrastructure models and this initiative will facilitate our ability to support our clients with this offering.”

The partnership comes just a week after First Reserve closed its second infrastructure fund on its $2.5bn hard cap after just eight months in the fundraising market.

The private equity firm bought Utility Services Associates (USA), a service provider focused on transmission and distribution infrastructure across the Mid-Atlantic and Eastern US in September 2013.

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