US-based institutional investor in the global energy and infrastructure sectors, EIG, has sealed a deal with Novonor and Brazilian Development Bank to acquire Brazilian offshore service provider Ocyan for $390m.
The deal includes $283m for Novonor’s 100% equity interest and the remaining amount for liquidation of its outstanding balance of non-voting securities related to Ocyan.
Ocyan is the only Brazilian operator in the floating production storage and offloading (FPSO) sector and currently operates four units through a 50/50 joint venture with Altera Infrastructure, holding long-term contracts with Libra Consortium, Karoon Energy and 3R Petroleum.
The company completed its restructuring in June 2023, which included the spin-off of its former drilling unit into a company called Foresea, and recently established a new energies division that is focused on the digitalisation of the oil and gas industry and engineering, procurement, and construction contracts for renewable energy projects.
EIG has invested more than $2bn in Brazil since 1998, and following the completion of the latest transaction expected to be completed in the first quarter of 2024, the company said Ocyan would benefit from its deep technical expertise in FPSOs and potential synergies with Prumo Logística, an EIG portfolio company, and its subsidiary, Port of Açu.
“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 R. Blair Thomas, EIG’s chairman and CEO.
Ocyan has built and operated more than $4bn of drilling rigs, pipelaying support vessels and FPSOs, alone or in joint ventures. This acquisition will not impact the company’s current contracts and operations with clients and suppliers.
