Export credit agency UK Export Finance (UKEF) will be supporting Brazilian contractor Ocyan's decommissioning drive with a US$7.5mn guarantee.
After initial discussions with UKEF, Ocyan onboarded Scottish business Maritime Developments Ltd in 2022 who would take care of the equipment needs for the decommissioning project in Brazil. This was made possible using the UKEF grant which helped Ocyan procure financing from ABC International Bank to successfully set off the MDL deal. The grant will be applicable on a reimbursement basis, boosting its access to working capital.
Charlotte Wiltshire, European Head of Wholesale Banking, ABC International Bank plc said, "We are delighted to continue our support of UK businesses in conjunction with UKEF, leveraging off Bank ABC Group’s MENA and international footprint. This is an important milestone transaction, promoting the UK’s expertise in the oil and gas decommissioning and renewable energy arena. Bank ABC is looking forward to enabling similar energy transition projects in future."
Removing subsea cables and pipes
A subsea pipelaying specialist from Aberdeen, MDL's wheeled horizontal lay system technology will be deployed by Ocyan to remove hundreds of kilometres of subsea cables and pipes from defunct FPSO oil and gas rigs in Brazilian waters.
Andrew Blaquiere, MDL Managing Director, said, "MDL is known worldwide for our forward-thinking technology that enables challenging scopes to progress on time and on budget, and this delivery to a Brazilian indigenous company is proof of that. 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.
"In a true MDL ‘We Build Innovation’ style, we put our heads together, brainstormed alternative approaches – and delivered the Wheeled HLS. As a result, the client – and the Brazilian market – gained a cost-effective way to kit-out a vessel of opportunity to handle high loads and tackle recovery projects – this way enabling more sustainable end-of-life operations."
The first-ever overseas grant from UKEF also stands to benefit more than 70 Scottish businesses which are responsible for the entirely local MDL model.
