Energy and infrastructure industry investor EIG has signed a definitive agreement with Novonor and Brazilian Development Bank (BNDES) to acquire Ocyan Participações (Ocyan) for $390m (1.8bn reais).
The consideration includes $283m for Novonor’s equity stake and the remaining amount for settling non-voting securities related to Ocyan.
Ocyan is a Brazilian oil and gas solutions provider delivering maintenance solutions to the offshore industry.
With 23 years of experience, it specialises in subsea construction and decommissioning projects.
As the sole Brazilian operator in the floating production storage and offloading (FPSO) industry, Ocyan collaborates with Altera Infrastructure in a 50/50 joint venture, managing four offshore units and holding long-term contracts with clients such as the Libra Consortium, Karoon Energy, and 3R Petroleum.
The company, with a workforce exceeding 3,000, has recently initiated a New Energies division, aiming at the digitalisation of the oil and gas industry, and engineering, procurement, and construction contracts for renewable energy projects.
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Post-acquisition, Ocyan is expected to benefit from EIG’s FPSO expertise and potential synergies with Prumo Logística, an EIG portfolio company, and its subsidiary, the Port of Açu.
EIG managing director and head of Brazil Flavio Valle 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.”
Ocyan CEO Roberto Prisco Paraiso Ramos said: “Ocyan has built and operated more than $4bn 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.”
Subject to standard closing conditions, the acquisition is anticipated to be finalised in the first quarter of 2024.