EIG to Acquire Brazilian O&G Services Firm for $390M
EIG, a Washington-based energy and infrastructure investor, has agreed to purchase Brazilian offshore services provider Ocyan Participações SA from Novonor SA and Brazilian Development Bank for $390 million, as part of a major move into floating production storage and offloading (FPSO) operations.
EIG said $283 million would go to Novonor for its 100% equity stake, while the remaining cash would go to liquidating debt that Novonor owes to development bank BNDESPAR.
As the only Brazilian operator in the FPSO industry, Ocyan currently operates four offshore units through a 50/50 joint venture with Altera Infrastructure, holding contracts with Libra Consortium, Karoon Energy and 3R Petroleum.
The company, with more than 3,000 employees, recently established a new energies division that is focused on the digitalization of the oil and gas industry and engineering, procurement, and construction contracts for renewable energy 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,” said R. Blair Thomas, EIG’s Chairman and CEO.
EIG, which manages $23 billion in energy and energy-related infrastructure assets, has invested more than $2 billion in Brazil since 1998. The deal is expected to close in the first quarter of 2024.