Petrofac has entered into a Framework Agreement with First Reserve to create PetroFirst Infrastructure Partners. The new venture intends to deploy capital both in purchasing a number of existing assets from Petrofac's Integrated Energy Services (IES) division, as well as in new energy infrastructure projects that utilise Petrofac's development capability.
The new venture is anticipated to be funded 80% by First Reserve and its investors, with Petrofac retaining the balance of ownership. Up to US$1 billion is expected to be committed by the First Reserve Energy Infrastructure Funds and its investors and Petrofac expects to contribute up to a maximum of US$250 million in the form of existing assets and cash. The gross investment capacity of the new venture is expected to be significantly increased through debt leverage available to infrastructure investments.