Engineering and construction company Clough Limited today announced that it has completed the sale of its Marine Construction business to SapuraCrest Petroleum Berhad for gross proceeds of approximately AUD 127 million and on the terms agreed and announced on August 8.
Clough’s offshore Marine Construction Division includes the derrick lay barge, Java Constructor, and associated marine construction equipment. Also included will be Clough’s interest in the Clough Helix Joint Venture, which operates the chartered Normand Clough vessel, and its investments in specialist engineering businesses, OFI and Peritus. Relevant contracts including the Chevron Gorgon Domestic Gas pipeline project are proposed to be novated.
Clough CEO, John Smith said, “Whilst Clough has enjoyed a long history of successfully executing marine construction projects, it is a sector where significant capital investment is required to compete with the larger regional and global players. Our results have been lumpy in this division and consistency requires scale, flexibility of assets and broad geographic coverage. We believe SapuraCrest will bring these characteristics and we wish them and the skilled workforce who will transfer every success for the future. Opportunities abound in the Australian gas and mineral sectors. Our strategy remains that of Engineering led EPC and this transaction leaves Clough with significant net cash and with capacity for further investment.”
[mappress] Offshore Energy Today Staff, December 22, 2011; Image: Clough