BG Deal Lifts EIG-Backed Brazil Port Venture to 7-Month High

by Juan Pablo Spinetto (Bloomberg) Prumo Logistica SA, the Brazilian port developer managed by non-public fairness buyers EIG Global Energy Partners LLC, rose to the best since October after signing a cope with BG Group Plc for oil operations.

Rio de Janeiro-based Prumo rose 14 p.c to 67 centavos at 11:54 a.m. in Sao Paulo on Friday, after earlier gaining 19 p.c.

Prumo on Wednesday signed a 20-year contract with BG Group to ship as a lot as 200,000 barrels a day via Prumo’s Acu port in Rio state, the corporate stated in a assertion. Markets had been closed Thursday in Brazil for a vacation.

The settlement permits the London-base crude producer to switch oil between ships on the port starting in August 2016. BG Group is Acu’s first shopper for such operations.

The 8.1 billion-reais ($2.6 billion) Acu port undertaking, began by former billionaire Eike Batista in 2007, started operations in October after years of delays and value overruns. Short of capital to complete his initiatives, Batista in late 2013 surrendered management to EIG, the $21 billion private-equity fund based mostly in Washington, which now owns about 74 p.c of Prumo.

Prumo, previously often known as LLX Logistica SA, has been looking for an oil deal since at the very least 2010.