Ocyan Separates And Transfers Its Offshore Drilling Business To New Company, Migrating Its Five Rigs

Written by Roberta Souza

Published on 05/04/2023 at 11:38

Plataforma de perfuração da Ocyan. (Foto Divulgação Diário do Porto)

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Offshore Services Company Debt Falls From US$ 2.6 Billion to US$ 300 Million With Separation of Drilling Business

Ocyan, a provider of offshore equipment and services for oil and gas, completed last week, in Brazil, the transfer of the drilling business to a new company, still unnamed, which will receive its five rigs. With this, the company expects to reduce the financial debt of the drilling unit, which is expected to drop by more than 85%. However, the platform operation, underwater construction, maintenance, and offshore services will remain with Ocyan.

The reorganization of the offshore services company was made possible by an out-of-court recovery, where creditors propose or agree to the process right from the start and can also make investments. The process was filed on December 12 in the Court of Justice of Rio de Janeiro (TJ-RJ) and approved last week.

The operation will now take place in the U.S. court, with a completion deadline of 45 days. The plan will be presented in the New York court complying with the “Chapter 15” of the U.S. Bankruptcy Code, for the recognition of the impacts in the United States. The new company has been referred to as DrillCo and was created in Luxembourg.

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Financial Debt of Offshore Services Company and New Investments

The reconfiguration of the offshore services giant will address the financial debt of the drilling unit, which will decrease from US$ 2.6 billion to US$ 300 million. Ocyan also announced that creditors will convert the debt into equity and use an additional US$ 197 million for new investments in the operation. According to Microsoft Start, the company will contribute part of the executive and technical team.

“The debt holders are investment funds that purchased the bonds in mid-2010 to finance the construction of the rigs. These bonds will be converted into equity, and the new company will have a very low level of indebtedness. We were paying a mountain of money in interest, which we can pay as dividends,” said Ocyan’s president, Roberto Prisco Paraíso Ramos.

Brazilian Offshore Services Company Will Hold Less Than 10% of New Business Equity

The shareholder structure of the new company will consist of the debt holders backed by drilling assets, in addition to Ocyan, and the executive team of the new company. The partners are investment funds and investors from Luxembourg, who will provide the majority of the capital needed to carry out the operation.

As announced by Ramos, despite the large investments that will be made, the Brazilian offshore services company will hold less than 10% of the capital of the new business, but will maintain a seat on the Board of Directors. “This way we preserve our participation in the directions of the new company,” justifies Ramos.

Ocyan Separates And Transfers Its Offshore Drilling Business To New Company, Migrating Its Five Rigs

Offshore Services Company Debt Falls From US$ 2.6 Billion to US$ 300 Million With Separation of Drilling Business

Financial Debt of Offshore Services Company and New Investments

Brazilian Offshore Services Company Will Hold Less Than 10% of New Business Equity

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Ocyan Separates And Transfers Its Offshore Drilling Business To New Company, Migrating Its Five Rigs

Offshore Services Company Debt Falls From US$ 2.6 Billion to US$ 300 Million With Separation of Drilling Business

Financial Debt of Offshore Services Company and New Investments

Brazilian Offshore Services Company Will Hold Less Than 10% of New Business Equity

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