Oil

First Reserve forms partnership with Hainan Zhenghe Industrial Group

Energy-focused private equity firm First Reserve’s Fund XIII has entered into a strategic cooperation with Hainan Zhenghe Industrial Group.

The parties plan to pursue oil and gas investment opportunities in China and Central Asia.
 
In addition, Zhenghe will act as a potential source of capital in support of First Reserve's participation in North American oil and gas upstream projects and will invest as a limited partner in First Reserve Fund XIII.
 
Zhenghe is a publicly listed company in China and focused on oil and gas exploration and production operations.
 
Financial terms of the agreement were not disclosed.
 
The two organisations will advise and support each other on upstream transaction strategies and financing, and will share research on upstream projects.
 
Alex Krueger, president of First Reserve, says: "We recognise and value Zhenghe's role as an important oil and gas investor in China and Central Asia and are delighted to have formed this partnership. We look forward to the strategic enhancement Zhenghe will provide to the execution of First Reserve's business model and the proliferation of our already diverse portfolio in upstream oil and gas."
 
Joe Ning, CEO of Zhenghe, says: "We are very pleased to establish a strategic partnership with First Reserve. Zhenghe is committed to expand its exploration and production interests into North America and other continents and we believe that the cooperation between Zhenghe and First Reserve will create strategic and financial synergies in multiple aspects."

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