Air carrier First Officer reported an engine failure on a B-747 during cruise in oceanic airspace. The crew elected to continue in oceanic airspace and planned a diversion to an alternate airport on the mainland.

Narrative

Boeing 747 LCF In-Flight Engine Failure - #2 EngineAircraft Type: Boeing 747 Large Cargo Freighter (LCF)Phase of Flight: Cruise (Coasting Out over Ocean)Time Since Departure: Approximately 3.5 hoursCrew Action: Immediate response and diversion planningAt approximately 3.5 hours into the flight during cruise over the ocean; we experienced a failure of engine #2. A loud bang was heard; accompanied by momentary airframe vibrations. Engine instrument indications showed N1 rolling back to near idle; with a corresponding loss of thrust. EGT (Exhaust Gas Temperature) spiked to redline (650°C+) when the thrust lever was retarded to idle.We executed the immediate action items and subsequently moved the fuel control switch for engine #2 to cutoff. We completed the Engine Severe Damage or Separation checklist and secured the engine accordingly.ATC was notified; and we [requested priority handling]. Due to our inability to maintain cruise altitude with the degraded performance; we requested and received clearance to descend to FL270; our engine-out drift-down altitude.After stabilizing the situation; we contacted dispatch and maintenance control via SATCOM. At the time; we were approximately 100;000 lbs over max landing weight; owing to high remaining fuel. A diversion plan was discussed and developed in coordination with dispatch.It was determined that we had sufficient fuel to continue safely across the Atlantic with one engine inoperative. We elected to proceed with a planned diversion to ZZZ; continuing at our most efficient engine-out cruise speed and altitude. The flight proceeded uneventfully from that point forward.