Bogotá, Colombia, December 17, 2014
—IFC, a member of the World Bank Group, and a consortium of investors led by IFC, including the IFC Global Infrastructure Fund, will invest $320 million in Pacific Midstream Ltd., a growing company that will play an important role in Colombia’s efforts to improve its oil and gas pipeline network.
The investment represents the largest-ever IFC-led consortium in Colombia’s infrastructure sector. The funding is being provided to help Pacific Midstream increase Colombia’s energy infrastructure. An additional $60 million will be provided in the coming months as added capitalization for the company.
With this investment, IFC and the consortium are acquiring a stake in Pacific Midstream, which will continue to be an affiliate of Pacific Rubiales Energy Corp., the largest independent oil producer in Colombia.
In recent years, the country has seen a surge in oil production that has overrun Colombia’s oil pipeline network. Pacific Rubiales has played a leading role in developing pipelines and other hydrocarbon infrastructure to address this gap. Through Pacific Midstream, this investment will improve the logistics of Colombia’s oil and gas sector and help to solve the bottlenecks that have constrained growth in the industry.
Improving Colombia’s pipeline network will result in lower transportation costs for oil and gas producers, fostering new investments in the sector. In addition, the expansion of pipeline infrastructure will also replace oil trucking with safer and cleaner transportation alternatives, thus reducing the environmental footprint of the oil and gas industry in Colombia.
“We are excited to continue our relationship with IFC. Their investment in Pacific Midstream underlines the strategic importance and value of our infrastructure assets to the oil and gas sector in Colombia,” said Ronald Pantin, Chief Executive Officer of Pacific Rubiales Energy Corp.
IFC has partnered with Pacific Rubiales in the past to strengthen Colombia’s oil infrastructure. In 2013, IFC and two funds managed by the IFC Asset Management Company invested $150 million in Pacific Infrastructure Venture Inc., an affiliate of Pacific Rubiales, which is building a new port terminal designed for the shipment of Colombia’s crude exports.
“This investment is a new example of IFC’s efforts to reduce infrastructure bottlenecks that are hampering the oil and gas sector in Colombia. Our collaboration with Pacific Rubiales and its affiliates will play an important role in strengthening the oil and gas sector by improving environmental and safety standards and the reliability of Colombia´s oil infrastructure,” said Irene Arias, IFC’s Director for Latin America and the Caribbean.
Lance Crist, IFC’s Global Head of Oil and Gas, said, “This transaction strengthens our partnership with a leading player in the sector, building a well-capitalized platform that would be able to grow through investment in midstream opportunities in the region.”
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. It manages $6.3 billion of capital across six investment funds. For more information, visit
About the IFC Global Infrastructure Fund
The IFC Global Infrastructure Fund, LP invests alongside IFC in equity and equity-related investments in infrastructure projects and companies in developing countries.