Brazil's massive oil discovery isn't just spurring deals for offshore oil companies. For $174 million, Bristow Group Inc. (NYSE:BRS) is
acquiring 42.5% of Lider Aviacao Holding SA, Brazil's largest provider of helicopter and executive aviation services.
Bristow, with its major operations in the U.S. Gulf of Mexico and the North Sea, provides helicopter services to the worldwide offshore energy industry. Bristow president and CEO William Chiles said in a statement: "We view Brazil as the next 'North Sea' in terms of its potential for growth in offshore services requirements. This investment in Lider represents our most attractive entry point into a new market that is a critical part of our long-term growth strategy."
As we
previously reported, Brazil's offshore oil discovery, which the AP said could be worth as much as $5 trillion, will be difficult to extract but if they're able to tap the oil reserves efficiently, we could see a rush of investment to that sector. Houston-based Bristow's deal highlights that notion.
And don't expect state-run oil company Petroleo Brasileiro SA -- which is being
encouraged to invest overseas -- to go it alone, despite its decades of experience in deep-water drilling. Brazilian officials said any new oil company would not actually drill, but negotiate production-sharing agreements between oil giant Petrobras SA and private partners, which already include Royal Dutch Shell plc, BG Group plc and a division of Galp Energia, Portugal's biggest energy company. -
Baz Hiralal
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