EIG to acquire Ocyan for US$390 mln

EIG announced that it has entered into definitive agreements with Novonor and Brazilian Development Bank (BNDES) to acquire Ocyan, a Brazilian-based solutions provider to the offshore oil and gas industry, for a total amount of US$390 million.

As part of the transaction US$283 million will be for Novonor’s 100% equity interest 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 BNDESPAR, in accordance with the fiduciary agreement previously executed by the parties, in order to settle a portion of Novonor’s debt.

The completion of the transaction is subject to certain customary closing conditions and is expected to occur in the first quarter of 2024.

EIG has invested more than US$2 billion in Brazil since 1998. The acquisition of Ocyan reflects EIG’s long-term, comprehensive Brazilian strategy focused on infrastructure supporting high-quality deepwater crude oil production, responsible decommissioning activities and investments in renewables and low carbon projects. Following the completion of the transaction, Ocyan will benefit from EIG’s technical expertise in FPSOs and potential synergies with Prumo Logística, an EIG portfolio company, and its subsidiary, Port of Açu.

“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,” said R. Blair Thomas, EIG’s Chairman and Chief Executive Officer.

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, added: “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, noted: “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.”