(Bloomberg) -- EIG Global Energy Partners is looking at 20 potential deals in Brazil after completing the acquisition of offshore oil equipment contractor Ocyan, a top executive said in an interview. 

The Washington, DC-based private equity group is focusing its acquisitions on renewable energy and midstream oil, which includes storage and transportation of oil products, Flavio Valle, EIG’s head in Brazil, said in an interview. EIG is also considering selling its 76% stake in Prumo Logistica SA, a holding company for infrastructure projects including Porto do Acu Operacoes SA, a Manhattan-sized port in Rio de Janeiro state that is one of Brazil’s main oil and natural gas hubs. 

“Our core business is to divest from the invested companies over time,” Valle said. 

EIG’s efforts to expand in Brazil underscore the potential for growth in both oil and renewable energy in Latin America’s largest economy. State-controlled oil giant Petrobras is investing $102 billion in the five years through 2028, offering opportunities for equipment and service suppliers, and the country leads Latin America in wind and solar energy. 

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EIG is interested in opportunities to bid for natural gas pipelines and regasification terminals, and would be interested in buying back a stake it sold in Transportadora Brasileira Gasoduto Bolivia-Brasil SA, or TBG. It is also looking at fuel storage operations and wind and solar projects, he said. 

The investment firm is also looking to sell as much as a 40% stake in oil logistics company Vast, which is based at Porto do Acu and handles about 30% of Brazil’s oil exports, he said.  

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EIG announced Tuesday that it completed the acquisition of Novonor’s offshore services unit Ocyan, formerly known as Odebrecht Oil and Gas, in a $390 million deal. EIG and its partner Lake Capital raised part of the funds for the purchase from local investors in a strategy they could repeat in the future. EIG and Lake identified a shortage of financial investors in the country’s oil and gas sector.

The plan for Ocyan, the only Brazilian operator of offshore production vessels known as FPSOs, is to consolidate it as a major national player in the offshore oil services industry in five to seven years. Valle sees the industry in a strong position with oil at $90 a barrel, and with state-controlled oil producer Petrobras planning to add 14 new FPSOs between 2025 and 2028. Ocyan also plans to provide services to offshore wind companies.

With $23 billion of assets under management, EIG has been looking for deals not only in Brazil but throughout Latin America. In February, the firm’s liquefied natural gas company MidOcean entered into a definitive pact to acquire a 20% stake in Peru LNG. EIG should allocate around 20% of a new $1.5 billion equity fund, that is expected to be closed in mid-April, to countries outside of the Organisation for Economic Co-operation and Development, or OECD, Valle said.

Since 1998, EIG has invested $2 billion in Brazil where it is “resilient” and has no plans to leave like many of its competitors have, Valle said. 

 

 

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