White & Case guides first reserve-based loan in Mexico’s upstream sector

Global law firm White & Case has advised a syndicate of lenders to Petrolera Cárdenas Mora, a wholly owned subsidiary of Egypt-based Cheiron Petroleum Corporation, on the first reserve-based lending transaction in the upstream oil and gas sector in Mexico. 



Cheiron Petroleum Corporation is an independent exploration and production company focused on the development of mature oil and gas fields with upside potential, and is developing the onshore Cárdenas and Mora fields in conjunction with Mexico’s state oil firm Pemex. 



The bank syndicate was led by Natixis, with support from their reserve-based lending teams in Paris, Mexico City and New York.

The loan proceeds will be primarily applied to refinance the existing acquisition bridge facility as well as towards the payment of the remaining acquisition costs for working interests in the Cárdenas and Mora fields, located in Tabasco state, which were awarded to Petrolera Cárdenas Mora in a 2017 farm-out auction. 



The transaction is based on the EMEA reserve-based lending model, which has many features that are distinct from the North American reserve-based lending structure.

“The successful conclusion of this financing is a landmark transaction for the Mexican oil and gas sector, paving the way for future similarly structured financings for other independent oil and gas companies operating in Mexico and opening the door to certain liquidity options that were not previously available in the upstream space,” according to White & Case.

The White & Case team was led jointly out of the Houston, Mexico City and London offices by partners Tom Bartlett and Juan Ruenes, associates Fern Han and Juan Pablo Ortiz, and also included partner Sabrena Silver, counsel Eduardo Barrachina and associates Bettina de Catalogne and Tom Wilkinson.



White & Case lawyers in Houston, Mexico City, London, New York and Paris provided support throughout the transaction.