EIG to acquire Ocyan for $390m

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.