Riverstone Holdings, now set for the Gulf of Mexico
Riverstone Holdings is the largest private energy-focused equity firm in the world. It is now partnering with Miguel Galuccio, a 48-year-old oil executive, in launching a venture that is set to be on an international scale. Talks are in high gear regarding the opportunities that may present themselves in the energy sector once Galuccio and Riverstone merge. Sources from a private source state that, the plan behind the merger is to pursue investments mainly in Mexico.
Riverstone Holdings was founded by David Leuschen and Pierre Lapeyre in 2000. They have managed to raise over $34 billion since the company’s conception, for buyout and growth purposes in the energy sector. Galuccio has experience going over 25 years in the energy sector in five continents. Last month the company was nominated as a member of the Schlumberger Ltd. Board.
Schlumberger Ltd. is the largest oil and gas company in the world. Galuccio previously worked for Schlumberger Ltd. He has also worked for YPF SA, an Argentinian company, as their CEO. Galuccio was known for turning Argentina to the worlds largest producer of shale after the United States. He managed to do this by initiating Vaca Muerta deposits to be explored. Galuccio was also key in the talks with Repsol SA in compensating them after their holdings were nationalized by Argentina in 2012.
Riverstone Holdings is already actively participating in the Mexican energy market. The company deployed 17 percent of its entire capital to the Gulf of Mexico, that is according to their last earnings call. These funds have been used by Sierra Oil and Gas and Fieldwood Energy LLC in their exploration exercises. Fieldwood Energy is currently the largest oil and gas company in the Gulf of Mexico. They produce an equivalent of over 85,000 barrels of oil a day. Riverstone Holdings managed funds through local pensions funds of a sum over $750 million.
The move has come after the Mexican government reforming the energy sector in a bid to attract international investors. The government has for 75 years only allowed Petroleos Mexicanos, also known as Pemex, to conduct oil and gas excavation exercises in the country. Mexico is rich in oil and gas reserves that are essential for use in other parts of the world.
During the 13 years at Schlumberger, Galuccio created a successful production model that linked the company’s output to the payment of customers. This model was first tested in Latin America. He also initiated new incentives that went into service contracts that became vital in opening the enormous oil and gas sectors in Mexico to become private capital.