Ezra Holdings and Emas Offshore have accepted a non-binding letter of intent to sell at least their current combined 78.4% equity interest in PV Keez to a global infrastructure investment firm.
PV Keez is a single purpose company who owns the FPSO Lewek EMAS, which is chartered to Premier Oil as operator of the Chim Sao field offshore southern Vietnam. Terms of the deal and the name of the buyer were not revealed.
Ezra and Emas are expected to receive an aggregate consideration of a combination of cash and sellers credit, upon successful closure of the transaction, Ezra said.
Commenting on this transaction, Lionel Lee, Group CEO and Managing Director of Ezra, said, “This transaction is fully in line with the Group’s strategy to move away from ownership of FPSO assets and will allow us to streamline our resources. Furthermore, it will allow us to move towards capitalising on the capabilities and experience we have harnessed from FPSO conversions and to build a franchise based on providing higher value-added services.”
Captain Adarash Kumar, Emas Offshore’s Chief Executive Officer, added, “This transaction will enable us to strengthen our financial position and refocus the company’s business in the offshore support sector during the current challenging times in the oil and gas sector.”
According to Ezra’s press release, barring any unforeseen circumstances and subject to the entry into a formal and binding agreement and obtaining the requisite approvals, the transaction is expected to be completed by no later than the end of June 2016.