Global investment firm Carlyle has agreed to acquire a diversified FPSO (Floating Production, Storage and Offloading) business from Altera Infrastructure Group, a leading offshore energy infrastructure company owned by Brookfield Asset Management’s private equity business. The transaction is subject to customary closing conditions and regulatory approvals.
The acquired business includes ownership of multiple FPSOs and one FSO (Floating Storage and Offloading), which are underpinned by long-term contracts with major oil and gas companies. The portfolio includes the Petrojarl Kong FPSO and FSO Yamoussoukro, deployed in the Ivory Coast with Eni, which represents the first net zero emission upstream project (Scope 1 and 2) in Africa, the Piranema FPSO, as well as 50% of the Altera&Ocyan joint-venture asset Pioneiro de Libra FPSO, deployed in Brazil with Petrobras. Additionally, the business benefits from a strong pipeline of future growth and redeployment opportunities.
Carlyle’s investment will support the Altera FPSO business through its sector-specific investment team and available follow-on equity capital for accretive growth and M&A, building on the company’s track record in redeployments.
Equity for the transaction will come from Carlyle International Energy Partners II ('CIEP II'), a private equity fund that focuses on energy opportunities globally. Carlyle will leverage its strong track record and experience in successful carve-outs of energy assets, following previous investments in Neptune Energy, Assala Energy and SierraCol.
Bob Maguire, Co-Head of CIEP, said: 'This is a rare opportunity to acquire an established and high-quality FPSO business with a strong management team, operating track record and long-term cashflows. This portfolio benefits from long-term contracts, strong FPSO market fundamentals, and exposure to world-class operators which position it well for success.'
Bendik Dahle, Managing Director on the CIEP investment team, said: 'We are delighted to partner with Altera FPSO to further build out the business’ scale and operations. We look forward to working closely with their strong management team to support the business in becoming a leading FPSO player globally through unlocking organic growth opportunities, M&A, partnering with operators on the delivery of their flagship upstream projects and supporting their decarbonization plans.'
Chris Brett, President at Altera Production, and Arne Hygen Tørnkvist, Executive Vice President - Projects, said: 'Partnering with Carlyle marks an important step forward in our journey. Carlyle’s deep sector expertise and global network in the energy space, combined with its scale and resources, will allow us to further optimize the long-term performance of our assets, identify efficiencies across the portfolio and execute on growth initiatives to scale the business. We are excited to partner with Carlyle and look forward to delivering for our clients in a rapidly evolving energy landscape.'
Source: Carlyle
