Infrastructure investor EIG entered into definitive agreements with Novonor SA and Brazilian Development Bank to acquire offshore service company Ocyan Participações SA for $390 million, EIG said in a Dec. 28 press release.
The deal includes $283 million for Novonor’s equity interests and the remainder to liquidate Ocyan’s non-voting securities.
The transaction’s proceeds related to Novonor’s equity interest will be directly paid to Brazilian development bank BNDESPAR to settle a portion of Novonor’s debt.
Ocyan has a 23-year track record delivering maintenance solutions to the offshore oil and gas sector, including the operation of subsea construction and decommissioning projects. The company is Brazil’s only FPSO operator, running four offshore units through a 50/50 joint venture (JV) with Altera Infrastructure. The JV holds long-term contracts with Libra Consortium, Karoon Energy and 3R Petroleum.
The company recently established a New Energies division that is focused on the digitalization of the oil and gas industry and engineering, procurement, and construction (EPC) contracts for renewable energy projects.
EIG has invested more than US$2 billion in Brazil since 1998. The acquisition of Ocyan reflects EIG's long-term, comprehensive Brazilian strategy focused on infrastructure that supports deepwater crude oil production, decommissioning activities and investments in renewables and low carbon projects.
“Brazil is home to over 25% of the global FPSO fleets, and we believe the future market dynamics for oil and gas infrastructure in Brazil are very favorable, underscoring our dual commitment to supporting growth and development in this important region while creating value for our investors,” said R. Blair Thomas, EIG’s chairman and CEO. “We are also excited to support Ocyan’s ventures in the renewables space to help drive the energy transition forward.”
Following the completion of the transaction, EIG said Ocyan will benefit its deep technical expertise in FPSOs and potential synergies with Prumo Logística, an EIG portfolio company, and its subsidiary, Port of Açu.
The transaction, subject to certain customary closing conditions, is expected to close first-quarter 2024.
Lakeshore Partners acted as EIG’s exclusive financial adviser, with Lakeshore’s newly established affiliate, Lake Capital, providing asset management services. Mattos Filho and White & Case served as transaction legal advisers and Stocche Forbes as fund counsel.
EY has acted as BNDES’ exclusive financial adviser and Lacaz Martins as transaction legal adviser. VMB Jurídica served as transaction legal adviser to Novonor.
Recommended Reading
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.