SBM Offshore closes buy of Constellation’s shares in five FPSOs

  • Exploration & Production

Dutch FPSO provider SBM Offshore has completed an acquisition of Constellation’s shares in five Brazilian FPSOs.

SBM Offshore’s twin FPSOs pass in Guanabara Bay as Cidade de Maricá departs from and Cidade de Saquarema arrives at Brasa shipyard December 2015 / Image source: SBM Offshore

This follows SBM Offshore being chosen as the successful bidder in the public auction for equity ownership in five FPSOs back in October.

Under the acquisition, SBM Offshore bought minority interests held by Constellation in entities related to the Cidade de Paraty (20%), Cidade de Ilhabela (12.75%), Cidade de Marica (5%), Cidade de Saquarema (5%), and Capixaba (20%) FPSOs.

SBM Offshore was already the majority shareholder of the related entities and operator of these FPSOs before the transaction was completed.

SBM said on Friday that it paid the total cash consideration of $149 million upon completion of the transaction.

According to the company, the completion of the transaction concludes a long-term partnership between the companies that was established in 2004.

It is worth noting that Brazil is SBM Offshore’s biggest market. At year-end 2018, the company had 13 FPSOs in total, seven of which were FPSOs deployed in Brazil.

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