Newly Created Player Seeks the Right Partners
Much of the talk on the restructuring of the oil and gas industry involves the creation of local operators. However, the risky and capital intensive exploration sector does not come up in conversation as often. ACON Investments saw the potential of the exploration segment and decided to fund Citla Energy, which was created to participate and invest in the national exploration and production sector. “The Energy Reform brings huge opportunities for the private sector, as the government structured a way for investment to flow in an orderly and organized fashion. An event of this magnitude happens every couple of decades in the global oil and gas industry, and we created Citla as a vehicle to be part of it,” shares Alberto Galvis, CEO of Citla Energy.
So far, Citla has secured significant funds from reputable institutions, including the World Bank, through the IFC, the China-Mexico Fund, and Mexican pension funds, as well as ACON Investments, its sponsor private equity firm. In addition, Citla is working on building its operating capabilities, for which it is negotiating with potential partners that have had activities in Mexico for a considerable time. “We will soon have proven operational capabilities through our partners that will provide us with the necessary knowledge and experience. This will be added to the skills and assets that we already have within our company, such as our financial muscle,” says Galvis, who also highlights his 15 years of experience in several countries as an asset that will serve his company.
Galvis lists the reasons why companies should consider partnering with Citla, “Firstly, we have a strong and robust financial backing, which many local companies are lacking. Secondly, we are contributing international standards that will help the industry operate in a responsible manner and with higher technical capabilities. Finally, we will bring international experience that will contribute to the industry, as this was closed for 75 years and will benefit from new ideas and ways of doing business.” Galvis hopes that these capabilities and assets will allow his company to participate in R1-L05. “We find those onshore blocks are quite attractive, given the large volume of resources.” He also mentions once the timing of the farm-outs is confirmed, Citla Energy will look into this opportunity seriously.