Carlyle moves into FPSO market with Altera acquisition

Global investment powerhouse Carlyle has officially entered into an agreement to acquire Altera Infrastructure’s entire Floating Production Storage and Offloading (FPSO) business. This strategic move aims to enhance Carlyle’s presence in the offshore energy infrastructure sector. The deal, pending the usual regulatory approvals and closing conditions, encompasses multiple FPSOs, an FSO, and a 50% interest in the Altera&Ocyan joint venture.

Key Assets and Strategic Vision

The acquisition includes significant assets such as the Petrojarl Kong FPSO, the FSO Yamoussoukro—recognized as Africa’s first net-zero upstream project—and the Piranema FPSO. These assets are secured by long-term contracts with reputable oil and gas giants, including Petrobras and Eni, ensuring a stable revenue stream for Carlyle. This strategic investment will be executed through Carlyle’s Carlyle International Energy Partners II (CIEP II) fund.

Bob Maguire, co-head of CIEP, emphasized that this acquisition represents a unique opportunity to acquire an established FPSO business with robust cash flows and connections to top-tier operators. Adding to this, Bendik Dahle, a managing director on the CIEP team, noted that Carlyle plans to expand the business on a global scale. The firm aims to leverage partnerships, pursue mergers and acquisitions, and support operators in their efforts to decarbonize.

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Altera’s Leadership Welcomes the Partnership

The leadership team at Altera Infrastructure expressed enthusiasm about the partnership. Chris Brett, president of Altera Production, along with Arne Hygen Trnkvist, executive vice president of projects, stated that Carlyle’s extensive sector expertise and vast global network will be instrumental in optimizing asset performance, enhancing operational efficiencies, and scaling the business effectively.

Altera Infrastructure, which falls under the umbrella of Brookfield Asset Management’s private equity arm, manages a substantial portfolio valued at $3 billion. This portfolio includes offshore infrastructure assets across the North Sea, Brazil, and West Africa, primarily comprising FPSOs and FSOs on medium-term contracts, complemented by additional units through joint ventures.