Milbank, Tweed, Hadley & McCloy’s leading Latin American practice began the new year with a major corporate transaction in Brazil’s energy sector. The firm is advising BTG Pactual Oil & Gás Participações S.A. (“BTG Oil & Gas”), a unit of the preeminent Brazilian investment bank BTG Pactual, in its $852 million joint venture with offshore supply vessel operator Deep Sea Supply Plc (DESS).
BTG Oil & Gas will purchase a 50% ownership stake in two DESS subsidiaries that operate platform supply vessels and anchor handling tug supply vessels in Brazil. DESS will transfer a total of 14 platform supply and anchor handling tug supply vessels to the joint venture, which will take over the financing of these and another six ships under construction by Shanghai-based Sinopacific Shipbuilding. The parties intend to expand the joint venture beyond the 20 vessels included in the current transaction. The deal is expected to close in the first quarter of 2013.
Milbank partner Andrew Jánszky, head of Milbank’s São Paulo office, led the team representing BTG Oil & Gas. Mr. Jánszky said, “This is a very significant development for the Brazil offshore sector, given DESS’s extensive experience in drilling operations in the North Sea and around the world. Milbank is delighted to play a role in this key transaction boosting Brazil’s offshore energy efforts.”
DESS, registered in Cyprus and listed on the Oslo Stock Exchange, has been involved in drilling operations in the North Sea, Southeast Asia, Africa, and Brazil. BTG Pactual, with operations in Chile, Colombia, Peru, China, the UK, and the US in addition to Brazil, is a leading investment bank in Latin America, and is one of Brazil’s largest wealth managers, with $21.4 billion under management; it has more than $72 billion under management globally.
In addition to Mr. Jánszky, the Milbank team on behalf of BTG Oil & Gas Pactual includes New York associates Matthew Thiel and Aaron Stine, and New York-based international attorney Andre Iglesias Marujo.
