Singapore’s oilfield services provider Ezra Holdings Limited has entered into a joint venture deal with Japan’s Chiyoda Corporation.
Under the agreement, the two firms will establish a new entity named, Emas Chiyoda Subsea, through Chiyoda investing into Ezra’s subsea services business, Emas AMC. The new company will be jointly (50:50) controlled by the two partners. The transaction implies an aggregate deal value for Emas Chiyoda Subsea of approximately $1.25 billion.
Providing rationale for the transaction, the companies said that the new firm Emas Chiyoda Subsea, will be able to carry out larger and more complex offshore EPCI projects through a combination of capabilities and resources.
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.”