GE Buys into Brazil Oil Drilling

GE Energy Financial Services plans to invest $54m and co-finance the acquisition of a ship drilling for oil in deep water off the coast of Brazil. GE says this is its first equity investment in offshore drilling. GE Capital Markets is an MLA on $259m in associated senior debt facilities along with WestLB, which is also an MLA. GE Transportation Finance joined with GE Energy Financial Services in underwriting the debt. The funds will facilitate Mike Mullen Energy Equipment Resource’s acquisition of Peregrine I, a deepwater drill ship under contract with Petrobras, from a subsidiary of Houston-based Transocean. A subsidiary of Etesco Construcoes E Comercio, an experienced Brazilian offshore rig operator, will operate the vessel under a contract with Petrobras. Mike Mullen Energy Equipment Resources, a Dallas-based offshore assets investor, and Pareto World Wide Offshore, a Norwegian private equity fund, are also investors in Peregrine I. The Peregrine I is drilling in the Atlantic Ocean off the coast of Brazil and rated to drill in 5,200 feet of water to a depth of 25,000 feet.