EIG, an institutional investor in the global energy and infrastructure sectors, has entered into definitive agreements to acquire a Brazilian-based offshore oil and gas solutions provider and the country’s only FPSO operator Ocyan for $390 million.
The agreements were made with Novonor and Brazilian Development Bank (BNDES), and covers EIG’s acquisition of Novonor’s 100% equity interest in Ocyan for $283 million, and the remaining amount for liquidation of its outstanding balance of non-voting securities related to the company.
The transaction’s proceeds related to Novonor’s equity interest will be directly paid to BNDES in accordance with the fiduciary agreement previously executed by the parties, in order to settle a portion of Novonor’s debt, the companies said.
The completion of the transaction is subject to certain customary closing conditions and is expected to take place in the first quarter of 2024.
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.
As the only Brazilian operator in the floating production storage and offloading (FPSO) sector, Ocyan currently operates four offshore units through a 50/50 joint venture with Altera Infrastructure, holding long-term contracts with Libra Consortium, Karoon Energy and 3R Petroleum.
The company, with more than 3,000 dedicated employees, 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.
“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,” said Blair Thomas, EIG’s Chairman and Chief Executive Officer.
Roberto Prisco Paraiso Ramos, Ocyan’s Chief Executive Officer, added:“Ocyan has built and operated more than $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.”