UK Export Finance backs Scottish in Brazil Oil Decommissioning
UK Export Finance (UKEF) has achieved a significant milestone by facilitating its inaugural transaction in support of overseas oil and gas decommissioning. This landmark deal, valued at $7.5 million, not only benefits Brazilian contractor Ocyan but also underscores the prowess of Scottish innovation in the global energy sector.
The Transaction:
UKEF issues a $7.5 million guarantee to Ocyan, enabling financing from ABC International Bank plc for equipment procurement from Scottish firm Maritime Developments Ltd (MDL). MDL, based in Aberdeen, specializes in subsea pipelaying and won the prestigious Queen’s Award for Enterprise in International Trade in 2022. The guarantee empowers Ocyan to secure financing for MDL's equipment, enhancing its access to working capital and facilitating the execution of a decommissioning contract in Brazil.
Scottish Expertise in Action:
MDL's Wheeled Horizontal Lay System, entirely developed in Scotland, plays a pivotal role in the decommissioning project, showcasing the country's cutting-edge technology. Over 70 Scottish businesses benefit from MDL's primarily local supply chain, emphasizing the collaborative nature of the endeavor.
Impact and Sustainability:
The partnership exemplifies UKEF's commitment to supporting global decommissioning and renewable energy initiatives, fostering sustainable practices worldwide. Andrew Blaquiere, MDL Managing Director, emphasizes the innovative nature of the wheeled HLS, providing cost-effective solutions for deep-water operations and promoting more sustainable end-of-life practices. Charlotte Wiltshire of ABC International Bank plc highlights the importance of the transaction in promoting UK expertise in oil and gas decommissioning and renewable energy sectors, signaling future opportunities for energy transition projects.
Governmental Perspective:
Martin Whalley, Director of Trade and Investment for Brazil, Department for Business and Trade, praises UKEF's role in supporting Brazil's sustainability journey and aiding companies in transitioning away from traditional energy sources. With £5 billion allocated to projects in Brazil, UKEF stands at the forefront of promoting sustainable practices and clean energy transition globally.
