EIG, a private investment firm focused on global energy and energy-related infrastructure investments, is to acquire Ocyan Participações (Ocyan), a Brazil-based solutions provider to the offshore oil and gas industry, for $390m.
Underrate the terms of the transaction, Ocyan will pay $283m acquire 100% of Novonor’s equity interest in the company as well as an additional $107m to liquidate the outstanding balance of non-voting securities related to the company.
The transaction’s proceeds related to Novonor’s equity interest will be paid directly to Brazilian Development Bank (BNDES) in accordance with a fiduciary agreement previously executed by the parties, to settle a portion of Novonor’s debt.
Ocyan is the only Brazilian operator in the Floating Production Storage and Offloading (FPSO) industry, and 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.
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.
The completion of the transaction, which is subject to certain customary closing conditions, is expected to occur in the first quarter of 2024.
Lakeshore Partners (Lakeshore) has acted as EIG’s exclusive financial advisor, with Lakeshore’s newly established affiliate, Lake Capital, providing asset management services. Mattos Filho and White & Case served as transaction legal advisors and Stocche Forbes as fund counsel. EY has acted as BNDES’ exclusive financial advisor and Lacaz Martins as transaction legal advisor. VMB Jurídica served as transaction legal advisor to Novonor.
