U.S. private equity fund KKR and Mexico’s Pemex are wrapping up details on a $1.2 billion sale and leaseback agreement, according to sources familiar with the operation, as the distressed state-owned oil company scrambles for extra cash.

Pemex [PEMX.UL], which has suffered from a prolonged oil rout, will sell some of its infrastructure assets to the fund, but will continue to operate and maintain them for 15 years and pay rent to KKR.

Pemex plans to repurchase the assets after the lease ends, one of the sources said, speaking on condition of anonymity.

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