UK Export Finance (UKEF) has closed its first ever transaction supporting overseas oil and gas decommissioning, securing finance for a contract which benefits more than 70 Scottish firms.
The export credit agency has issued a $7.5m guarantee which allows Brazilian contractor Ocyan to secure financing from ABC International Bank for new equipment from Scottish business Maritime Developments.
Based in Aberdeen, Maritime Developments provides consultancy, equipment and personnel to the energy sector, specialising in pipe laying.
Supported by early-stage discussions with UKEF, Ocyan ordered Maritime Developments equipment in 2022 so that it could deliver a decommissioning contract in Brazil. It has since used the Scottish company’s Wheeled Horizontal Lay System technology to remove hundreds of kilometres of subsea cables and pipes from defunct oil and gas rigs in Brazilian waters.
The newly-agreed guarantee means that Ocyan can now finance the Maritime Developments contract on a reimbursement basis, boosting its access to working capital.
The Wheeled Horizontal Lay System is entirely designed, manufactured and commissioned in Scotland, supported by its primarily local supply chain – meaning that the contract has supported around 70 Scottish businesses.
Martin Whalley, director of trade and investment for Brazil at the Department for Business and Trade, said: “With £5bn allocated to projects in Brazil, UKEF is at the forefront of supporting Brazilian enterprises in adopting more sustainable practices.
“This deal exemplifies the ongoing collaboration between the UK and Brazil in advancing clean energy transition across various industries, including offshore wind and hydrogen.“
Andrew Blaquiere, managing director at Maritime Developments, said: “Our engineering studies identified limitations with existing technology on the market when it came to recovery capability from deep waters like those in Brazil.
“The alternative for these operations would be to use a specialist construction vessel, resulting in high cost and scheduling challenges.
“So we put our heads together, brainstormed alternative approaches – and delivered the Wheeled HLS.“
Charlotte Wiltshire, European head of wholesale banking at ABC, added: “This is an important milestone transaction, promoting the UK’s expertise in the oil and gas decommissioning and renewable energy arena.”
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