BEIJING, Nov. 13, 2014 /PRNewswire/ -- Honghua Group Limited (HKEx stock code: HK0196, hereinafter called "Honghua") -- the world's largest manufacturer of land drilling rig -- announced on November 13, 2014 that it has committed to invest USD 150 million in Sino-Mex Energy Fund and becomes a limited partner of the Fund. The Sino-Mex Energy Fund will mainly invest in projects in energy infrastructural facilities, exploration and production of oil and natural gas area.
On the same day, China and Mexico announced "Outline of Promoting Comprehensive Strategic Partnership between People's Republic of China and The United States of Mexico". Article Eleven defines that "Both sides stress taking following actions to promote mutual investment". "(4) Promote investment in energy sector. Make good use of energy fund to support investment and financing cooperation on infrastructural facilities projects between Chinese enterprises and PEMEX".
One of the limited partners in the Sino-Mex Energy Fund, P.M.I. Holdings B.V. is a subsidiary of PEMEX. The latter is a holding company which manages petroleum, natural gas and basic petrochemical interests of the Mexican government. P.M.I. Holdings B.V. will subscribe to the Fund and will partner with Chinese enterprises through the Fund. The Fund is at once a result of Mexico's energy reform and an important showcase of Sino-Mexican collaboration in the energy sector.
Energy reform and related investments in Mexico have been put in place by the Mexican government through the announcement of "National Energy Strategy 2014-2028" and "2014-2018 Planning of National Infrastructural Facilities". Energy reform will not only become a powerful economic growth point but will bring significant investment opportunities for Mexican and foreign enterprises. According EIA data, the Gulf of Mexico is the largest petroleum belt yet to be developed next to the Arctic Circle. After the reform, Mexican energy sectors shall officially open to private and foreign investment.
Honghua's participation in the Sino-Mex Energy Fund enables the company to have an opportunity to procure orders for land drilling rigs and offshore platforms from Mexico and relevant businesses. It will also facilitate Honghua's product layout and sales in the Mexican and North American markets. As a limited partner of the Fund, Honghua will have positive opportunities to obtain orders from PEMEX for land-based drilling machines and modular drilling machines purchased from the Fund, as well as land and marine equipment such as offshore drilling platform, offshore drilling package and marine-support ships.
SOURCE Honghua Group