EIG to acquire Brazilian oil and gas solutions provider Ocyan for $390m

EIG, a global leader in energy and infrastructure investments, has officially declared its entrance into a definitive agreement to acquire Ocyan Participações S.A., a prominent Brazilian offshore oil and gas solutions provider. The deal, valued at $390 million, includes a $283 million payment for Novonor S.A.’s complete equity interest in Ocyan, with the remaining sum allocated for settling outstanding non-voting securities.

Details of the Strategic Acquisition

This significant transaction involves EIG taking over a company with a 23-year history of excellence in offshore oil and gas maintenance, including FPSO (Floating Production Storage and Offloading) operations. Ocyan’s unique position as the sole Brazilian operator in the FPSO industry, combined with its joint venture with Altera Infrastructure, positions it as a key player in servicing major contracts with entities like the Libra Consortium, Karoon Energy, and 3R Petroleum.

EIG’s Deepening Footprint in Brazil

With over $2 billion invested in Brazil since 1998, EIG’s acquisition of Ocyan aligns with its comprehensive strategy to focus on infrastructure supporting deepwater crude oil production and renewable energy projects. The transaction, expected to finalize in the first quarter of 2024, will integrate Ocyan into EIG’s broader portfolio, including synergies with Prumo Logística, another EIG entity.

Executive Perspectives on the Deal

EIG’s CEO, R. Blair Thomas, expressed admiration for Ocyan’s resilience and business strength, particularly in overcoming economic challenges while maintaining a healthy balance sheet. Flavio Valle, EIG’s Managing Director and Head of Brazil, highlighted the attractiveness of FPSO as an asset class and Ocyan’s capability in developing ambitious projects.

Closing and Advisors Involved

The completion of the deal is contingent on standard closing conditions, with Lakeshore Partners serving as EIG’s exclusive financial advisor. Mattos Filho and White & Case provided legal counsel, with additional advisory roles filled by EY for BNDES and VMB Jurídica for Novonor.

Conclusion: A Strategic Step Forward for EIG

EIG’s acquisition of Ocyan marks a significant step in its expansion within the offshore oil and gas sector, underscoring its commitment to innovative energy solutions and infrastructure development in Brazil and beyond.