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    Deep Sea Supply and BTG Pactual establish JV in Brazil

    News // January 18, 2013

    Deep Sea Supply (DESS) Plc and BTG Pactual Oil & Gás Participações (BTG Pactual) have announced that they have agreed  to enter into a joint venture (JV) for the ownership and operation of PSVs and anchor handlers in Brazil.

    The JV will be owned 50/50 by BTG Pactual and DESS, and will initially own and operate a fleet of 15 vessels.  

    The JV will also acquire six large PSVs currently under construction at Sinopacific Shipbuilding Group in China and will look to acquire additional PSVs and AHTS.

    "We see big advantages in developing the business in Brazil together with a strong,  local partner and  we consider BTG Pactual an excellent strategic partner," said Finn Amund Norbye, CEO of DESS.

    BTG  Pactual will acquire a  50 per cent ownership interest in each of Deep Sea Supply Navegação  Marítima Ltda and  Deep Sea Supply Serviços Marítimos Ltda from DESS.

    Deep Sea Navegação and Deep Sea Serviços  have an organization of 20 Brazilian employees conducting the  chartering and technical and crew management of DESS' fleet of vessels operating  in  Brazil.

    Deep  Sea  Navegação owns the 2012-built PSV Sea  Brasil which was recently delivered from STX Offshore do Brasil and has an 'EBN' license to operate and charter vessels in the Brazilian market.

    DESS will transfer nine AHTS and five PSVs to the JV. In exchange, the JV will make  a cash  payment equal  to the equity value of the vessels and will take over the vessels' current financing.

    The JV will acquire six large PSVs currently under  construction at Sinopacific. The PSVs, which  are  expected  to  be delivered in 2013, are of Ulstein  PX105 design and are well suited to operation in the Brazilian  market. The vessels will be acquired from PSV Holding Inc, an affiliate of Hemen  Holding Ltd, the largest  shareholder in DESS. PSV Holding Inc will be responsible  for the completion of each vessel including supervision costs.

    The transactions imply an enterprise value of the JV on delivery of all the vessels of approximately US$852 million. The JV partners will  also make an equity injection of US$48, with 50 per cent from each, to meet working capital requirements.

    The vessels to be  owned and operated  by the JV will be managed by Deep  Sea Navegação together with certain DESS  subsidiaries.


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