Scottish firms win in 1st UKEF deal for oil & gas de-re?-commissioning

(UKEF, London, 1 May 2024) UK Export Finance (UKEF) has closed its first ever transaction supporting overseas oil and gas decommissioning, securing finance for a major contract which benefits over 70 Scottish firms. The export credit agency has issued a $7.5 million guarantee which allows Brazilian contractor Ocyan to secure financing from ABC International Bank plc for new equipment from Scottish business Maritime Developments Ltd (MDL).  However in another online article, it turns out that this contract could be to remove old pipelines so as to re-commission idle oil rigs! UKEF does not name the rigs to be decommissioned. Yahoo Finance notes that "The contract [with Ocyan] will help Petrobras maintain a reliable supply of natural gas to its customers. The revitalized pipelines [eg Jorge Mitidieri and Renato Duque] will be able to transport additional gas, which will help meet the growing demand for natural gas in Brazil. Cost Savings: The deal will also help Petrobras in reducing costs. The new [recommissioned] pipelines will be more efficient than the old ones, which will help PBR save money on energy costs." It is not clear whether the decommissioned rigs are to be revamped or abandoned. Brazil is home to over 25% of the global FPSO fleets. At any rate, Brazil is clearly not leaving the offshore oil/gas rig industry thanks to UKEF, as implied by their press release.