Mercuria Energy Group’s Investment in Seacrest Petróleo

In UK Herbert Smith Freehills, advised on the matter.

Herbert Smith Freehills advised Mercuria Energy Group with a team including Laura Hulett (Corporate M&A), William Breeze (Picture – Finance), Isaac Zailer (Tax M&A and Deal Advisory).

Mercuria Energy Group made a debt and minority equity investments in the international oil investment business Seacrest Petróleo.  Mercuria is one of the world’s largest privately held energy and commodities companies.

The investments support Seacrest’s acquisitions of the Cricare and Norte Capixaba onshore oil assets for USD 155 million and USD 544 million, respectively.  Located in the state of Espírito Santo in south-eastern Brazil, the Cricare oil cluster has 27 onshore exploration and production fields, while the Norte Capixaba cluster comprises four producing fields.

Mercuria has made a minority equity investment into Seacrest and taken a position in a convertible loan note.  Mercuria provided debt financing for the Cricare and the Norte Capixaba transactions and is also an off-taker from the assets.  Financial close for the transactions was achieved on 23 December 2021 (Cricare) and 23 February 2022 (Norte Capixaba).

Herbert Smith Freehills’ London team was led by finance partner William Breeze (Picture) and corporate partner Laura Hulett, supported by senior associates Edgar Monteiro and Nicholas Rutter and associate Charlotte Croney on the debt financing aspects and associate Becky Wee on the equity investment and corporate aspects.  Additional support was provided by partner Isaac Zailer on tax matters.

Involved fees earner: William Breeze – Herbert Smith Freehills; Charlotte Croney – Herbert Smith Freehills; Laura Hulett – Herbert Smith Freehills; Edgar Monteiro – Herbert Smith Freehills; Nicholas Rutter – Herbert Smith Freehills; Becky Wee – Herbert Smith Freehills; Isaac Zailer – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: Mercuria Energy Group;

Author: Giulia Di Palma