Carlyle has agreed to acquire an FPSO business from Altera Infrastructure, an offshore energy infrastructure company owned by Brookfield Asset Management. The transaction is subject to customary closing conditions and regulatory approvals.
The acquired business includes ownership of several FPSOs and one FSO, which are used for floating production, storage, and offloading. The portfolio includes the Petrojarl Kong FPSO and FSO Yamoussoukro, which are deployed in the Ivory Coast with Eni. The portfolio also contains the Piranema FPSO, as well as a fifty per cent stake in the Altera and Ocyan joint-venture asset Pioneiro de Libra FPSO, which is deployed in Brazil with Petrobras.
Equity for the acquisition will come from Carlyle International Energy Partners II, a private equity fund that focuses on energy opportunities. Carlyle stated it would leverage its experience in successful carve-outs of energy assets, citing previous investments in Neptune Energy, Assala Energy, and SierraCol.
Bob Maguire, Co-Head of Carlyle International Energy Partners, said the FPSO business benefited from long-term contracts and strong market fundamentals.
Chris Brett, President at Altera Production, and Arne Hygen Tørnkvist, Executive Vice President - Projects, said that partnering with Carlyle would allow them to optimize the performance of the assets. They added that the investment would help them, "execute on growth initiatives to scale the business."