BG Deal Lifts EIG-Backed Brazil Port Venture to 7-Month High
by Juan Pablo Spinetto (Bloomberg) Prumo Logistica SA, the Brazilian port developer controlled by private equity investors EIG Global Energy Partners LLC, rose to the highest since October after signing a deal with BG Group Plc for oil operations.
Rio de Janeiro-based Prumo rose 14 percent to 67 centavos at 11:54 a.m. in Sao Paulo on Friday, after earlier gaining 19 percent.
Prumo on Wednesday signed a 20-year contract with BG Group to ship as much as 200,000 barrels a day through Prumo’s Acu port in Rio state, the company said in a statement. Markets were closed Thursday in Brazil for a holiday.
The agreement allows the London-base crude producer to transfer oil between ships at the port beginning in August 2016. BG Group is Acu’s first client for such operations.
The 8.1 billion-reais ($2.6 billion) Acu port project, started by former billionaire Eike Batista in 2007, began operations in October after years of delays and cost overruns. Short of capital to finish his projects, Batista in late 2013 surrendered control to EIG, the $21 billion private-equity fund based in Washington, which now owns about 74 percent of Prumo.
Prumo, formerly known as LLX Logistica SA, has been seeking an oil deal since at least 2010.
©2015 Bloomberg News
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