DEMAREST AND CAMPOS MELLO HELP GERMAN POWER GENERATOR ACQUIRE BRAZILIAN ASSETS
Source: Latin Lawyer
By Christina McKeon Frutuoso
Demarest Advogados has advised the Brazilian arm of German power generator Steag Energy Services on its acquisition of operation and maintenance (O&M) agreements from the Brazilian subsidiary of Norwegian energy operator Enex.
Campos Mello Advogados advised Enex on this deal.
Enex assigned Steag most of the O&M agreements it was party to for several wind farms and hydroelectric power stations in Brazil. It also transferred employees working under the agreements to Steag.
Steag takes on eight O&M contracts for small and medium-sized hydroelectric power plants, and 10 O&M contracts for wind farms located in Brazil. Around 80 employees will transfer to Steag, which operates power stations in Spain, South America, Africa, and India.
The deal marks Steag’s first active involvement in the operational management of hydroelectric power stations and is evidence of the company’s expansion into the Brazilian power supply industry. In February, Steag took over management of Brazilian gas treatment plant Parnaiba Gas Natural. The company manages the production of over 5,000 megawatts globally.
Hydroelectric power is Brazil’s largest energy source and supplies the country with around 65% of its total energy consumption. Following a drought between 2014 and 2017, Brazil has sought to promote alternative sources of energy and consequently wind and biomass power are on the rise. Wind projects currently supply 10.5% of Brazil’s total energy – a figure expected to double in the next few years.
Enex is a subsidiary of Norwegian hydroelectric company Statkraft Energias Renováveis. In February Steag acquired energy services contracts from a local subsidiary of Statkraft in Norway.
Counsel to Steag Energy Services do Brazil
Partners João Almeida, Renato Canizars and Rodrigo Campos, and associates Eliane Nery, Marcus Brumano, Ana Schedel, Ramon Abreu and Adriano Nery
Counsel to Enex
In-house counsel – Patricia Candido and Rafael Knop
Campos Mello Advogados
Partner Fabiano Gallo and associate Flavia Cerutti Alves Pinto