Rio de Janeiro, October 19, 2010. Odebrecht Óleo e Gás (OOG), an Odebrecht Organization company that offers integrated solutions for the upstream oil industry, announced its capitalization with the entry of shareholder Temasek Holdings, an investment company with a US$ 133 billion portfolio and head office in Singapore.
Temasek invested US$ 400 million in OOG. The funds will be used for new investments and will consolidate OOG’s position as an integrated oil industry service company, expanding its operations in Brazil and in international markets, primarily Angola and Latin America. The investment represents yet another step in the growth strategy being developed by OOG, which plans to invest US$ 3.5 billion next quarter.
“There is a strong sense of identity between the Temasek and Odebrecht business cultures,” said Miguel Gradin, CEO of Odebrecht Óleo e Gás. “This long term partnership is consistent with the OOG growth strategy in that it increases the company’s financial strength and helps us better serve our Clients in Brazil and the rest of the world, including the great demands associated with the exploration, development and production of pre-salt,” said Gradin.
“The discovery and exploration of large oil and gas reserves in deep waters, including those along the Brazilian coast, will have a major economic impact and will create important opportunities over the medium and long terms,” explained Matheus Villares, General Director of Temasek in Brazil. “We believe that OOG, with its extremely qualified team and client focus, is well positioned to assume a position of leadership in the sector in Brazil and worldwide,” said Villares.
With the investment, Temasek will hold a minority stake in the company. Marcelo Odebrecht will continue to serve as Chair of the new OOG Board of Directors.
Odebrecht Óleo e Gás
Odebrecht has been working as a service provider for the Brazilian oil industry since 1953, when it began its relationship – long term and built on trust – with Petrobras. In 1979, it began to work in the area of offshore drilling, becoming the first national private company to provide this type of service in Brazil. In the 1990s, it expanded its operations internationally, including to the Northern Sea, with a focus on providing services and operating FPSOs for new Clients. In 2006, Odebrecht concentrated its oil and gas investment in a new company, Odebrecht Óleo e Gás (OOG). Working on the upstream chain of the oil industry and serving its Clients in Brazil, the United Kingdom, Angola and Latin America, OOG provides integrated solutions that range from engineering design to the operation of drilling rigs and offshore production, and is ready to serve the oil industry by facing the new challenges associated with deep waters and pre-salt
Founded in 1974, Temasek Holdings is an investment company with head office in Singapore. Temasek has 12 offices worldwide and, as of March 31, 2010, it has owned a sector-diversified portfolio of US$ 133 billion, contracted primarily in Singapore, Asia and in emerging economies.
Temasek’s investments are focused on economies undergoing transformations; the growth of the middle class; increased comparative advantages and the emerging champions. Its portfolio covers several different sectors: financial services; telecommunications, media & technology; transportation & industry; biosciences, consumption & real estate market; and energy & natural resources. Since its foundation in 1974, Temasek has presented a Total Return on Investment of 17%, compounded annually. The company holds a corporate credit rating of AAA/Aaa with the agencies Standard & Poor’s and Moody’s, respectively.
Founded in 1944, Odebrecht is a Brazilian company with international operations that has 87,000 Members of 25 different nationalities. In 2009, its gross revenues totaled US$ 23 billion. Today, the Odebrecht Organization is composed of the following companies, besides Odebrecht Óleo e Gás: Odebrecht Energia, Odebrecht Engenharia Industrial, Odebrecht Infraestrutura, Odebrecht Latin America and Angola, Odebrecht Venezuela, Odebrecht International, Odebrecht Realizações Imobiliárias, Odebrecht TransPort, Foz do Brasil, Braskem, ETH Bioenergia e Odebrecht Participações e Investimentos.