Petroleos Mexicanos and private-equity firm First Reserve Corp. are finalizing terms on a sale and leaseback agreement intended to provide the beleaguered state-owned oil producer with much needed capital, according to two people with knowledge of the discussions.Pemex and First Reserve are set to sign an agreement valued at more than $500 million as soon as this week, according to one person familiar. As part of the agreement, First Reserve will buy midstream assets from Pemex and then lease them back to the Mexican producer, which will continue to operate the sites, according to the people, who asked not to be identified because they were not authorized to speak publicly. The person also said Pemex has closed its similar $1.2 billion sale-leaseback deal with KKR & Co. and that the funds entered Pemex’s accounts as of last week. Reuters had reported Thursday that the KKR deal was close but not yet finalized. The KKR deal was also mainly for midstream assets, as well as a non-drilling oil platform in Tabasco, the source said, declining to name other specific facilities included in either agreement.The two deals come as Pemex looks to raise immediate capital to pare debt during a difficult period. Pemex has recorded 14 straight quarterly losses, seen oil production decline for 11 straight years and had $93 billion in debt excluding pension liabilities as of the first quarter.
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