EIG to buy Brazilian offshore oil and gas company Ocyan for US$390 million

EIG, a global energy and infrastructure investor, announced today that it has agreed to buy Ocyan, a Brazilian offshore oil and gas solutions provider, from Novonor and BNDES for US$390 million. The deal will help Novonor pay off some of its debt to BNDES, the Brazilian development bank.

Ocyan operates four floating production units in partnership with Altera Infrastructure and has contracts with Libra Consortium, Karoon Energy and 3R Petroleum. The company also has a new division focused on digitalization and renewable energy projects.

EIG, which has invested more than US$2 billion in Brazil since 1998, said the acquisition is part of its long-term strategy to support deepwater crude oil production, responsible decommissioning and low carbon initiatives in Brazil. Ocyan will benefit from EIG’s technical expertise and synergies with Prumo Logística and Port of Açu, two of EIG’s portfolio companies.

The transaction is expected to close in the first quarter of 2024, subject to customary conditions. EIG was advised by Lakeshore Partners, Lake Capital, Mattos Filho, White & Case and Stocche Forbes. BNDES was advised by EY and Lacaz Martins. Novonor was advised by VMB Jurídica.

“I have known and respected Ocyan for decades,” said R. Blair Thomas, EIG’s Chairman and Chief Executive Officer.

“The company’s resilience and the strength of its business have helped it overcome significant economic headwinds while maintaining a healthy balance sheet, positioning Ocyan for long-term growth. 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. We are also excited to support Ocyan’s ventures in the renewables space to help drive the energy transition forward.”

Flavio Valle, EIG’s Managing Director and Head of Brazil, said, “FPSO is an attractive asset class for both equity and debt opportunities, and we are pleased to deepen our presence in the industry. We have admired Ocyan for many years and have been impressed by their ability to develop ambitious projects through challenging economic environments. With our global footprint and local capabilities, which are now enhanced by meaningful capital commitments from local clients, we believe that EIG is uniquely positioned to deliver on this complex transaction and to usher Ocyan into a new phase of growth.”

Héctor Nuñez, Novonor´s Chief Executive Officer, said, “This is another important milestone for the Novonor Group in fulfilling its commitments to its stakeholders as it aims to reestablish the company’s focus on diversified operations in the engineering sector, where it was established almost 80 years ago. We are very proud of Ocyan and its team, who are recognized for their operational and technical excellence, and are certain that their successful trajectory will continue.”

Roberto Prisco Paraiso Ramos, Ocyan’s Chief Executive Officer, said, “Ocyan has built and operated more than US$4 billion of drilling rigs, pipelaying support vessels and FPSOs, alone or in joint ventures, always enjoying the very strong support of its shareholders and Novonor. This acquisition does not impact current contracts and operations with our clients and suppliers. This is another important chapter in our history and one that will undoubtedly create new opportunities for Ocyan.”

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