Chiyoda, Xodus Unite in Energy Development Projects (UK)

Colin Manson CEO of Xodus Group (left) and Keiichi Nakagaki, Representative Director & Senior Executive Vice President Offshore & Upstream Project Operations with Chiyoda Corporation pictured in Aberdeen’s Union Terrace

Chiyoda Corporation and Xodus Group Limited announce that they have formed a strategic capital alliance, with Chiyoda having acquired the majority of shares in Xodus Group from the previous investors, Sunrise Xodus B.V. and Simmons Parallel Private L.P.

The increase in global demand for oil & gas has served to accelerate energy development projects all over the world including those in deep water and stranded areas. The need for consultancy and engineering services for the rejuvenation, optimization, debottlenecking and modification of brownfield projects and for decommissioning of the existing facilities, as well as for greenfield projects, is also growing.

Chiyoda announced, in its medium-term management plan in May 2013, that it would put a priority on the expansion of its business fields to offshore and upstream projects as one of its growth strategies and, in line with this strategy, established a new “Offshore & Upstream Project Operations” organization on July 1, 2013.

As an integrated engineering company aiming for harmony between energy and the environment and wishing to contribute to the sustainable development of society, Chiyoda is seeking vertical expansion and diversification of its business fields towards upstream and downstream in the value chain of energy development projects. While US and European engineering companies have many experiences in offshore and upstream projects, Chiyoda believes that a capital alliance with Xodus Group will complement and enhance Chiyoda’s competence, which is necessary to be a player in offshore and upstream projects.

By integrating Chiyoda’s engineering capability and Xodus Group’s specialized knowledge and expertise in offshore and upstream, Chiyoda will expand its business fields and will provide integrated services to enhance the value for customers in energy development projects.

Colin Manson, CEO of Xodus Group said there are exciting times ahead. “The combination of Xodus and Chiyoda will bring synergies and benefits to both companies.  Each will maintain their own core identities including vision, culture and people, however, when needed we can work together to deliver an integration of services from front-end service through to detailed engineering, procurement and construction service.  With Xodus’ strength in Europe and our global aspirations, combined with a more structured approach to business development activities, while utilising Chiyoda’s global network and industry experience throughout Asia Pacific, Middle East and South America, means we will be in a truly remarkable position moving forward.”

[mappress]

July 4, 2013