Chiyoda Bites into EMAS AMC

0
24


Singapore’s Ezra Holdings and Japan’s Chiyoda have signed a binding memorandum of understanding (MOU) for Chiyoda to invest in Ezra’s subsea services business, EMAS AMC, to form a 50:50 joint venture EMAS CHIYODA Subsea.

Chiyoda headquartered in Yokohama, Japan is a front end engineering design (FEED) and engineering procurement and construction (EPC) company.

The transaction implies an aggregate deal value for EMAS CHIYODA Subsea of approximately USD 1.25 billion.

As part of the joint venture, Chiyoda will pay Ezra a USD 150 million cash consideration and inject additional USD 30 million capital into EMAS CHIYODA Subsea. Ezra will also capitalise part of its existing intercompany debt owed by EMAS.

According to Ezra, through this partnership, EMAS CHIYODA Subsea will be fit to undertake projects in the following areas:

– Project management capability backed by technologically advanced assets;

– Global network of engineering centres;

– Supply chain management capability and global vendor networks;

– Wider global client networks;

– Research and development capabilities in engineering and construction technologies;

– Financial strength.

Chiyoda’s involvement will begin early in the concept development phase of offshore projects, after which EMAS CHIYODA Subsea will use its fleet and operational expertise to deliver these solutions offshore.

Shogo Shibuya, President and CEO of Chiyoda, said: “This is a very important milestone for us. It has been Chiyoda’s corporate strategy to strengthen the offshore upstream portfolio as Chiyoda’s next core business.

“With the establishment of EMAS CHIYODA Subsea, we are in a position to provide comprehensive services to our clients, from early phase concept study to EPCI, throughout the lifecycle of any offshore oil and gas project. Chiyoda is excited about this new opportunity and glad that we can jointly work with an excellent subsea player EMAS AMC.”

Lionel Lee, Group CEO and Managing Director of Ezra, said: “This JV will allow us to realise our vision of being a trusted partner and leader In the subsea construction business. It will enable us to undertake large complex EPCI projects, as well as full field developments, which combine onshore and offshore facilities. Chiyoda will be able to lend tremendous support in many areas of our business operations.”

 

 

 

 

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.