Ezra and Chiyoda Launch Subsea Joint Venture
Japan’s ECS player Chiyoda and Ezra’s subsea service business EMAS AMC have launched a joint venture EMAS CHIYODA Subsea, following the completion of the announced transaction.
The 50:50 joint venture will start operations effective from April 01, 2016.
The companies signed a binding memorandum of understanding (MoU) in August 2015 when it was agreed that Chiyoda would invest in EMAS AMC.
According to the MoU, the transaction implies an aggregate deal value for EMAS CHIYODA Subsea of approximately USD 1.25 billion.
Furthermore, the companies agreed that Chiyoda will pay Ezra a USD 150 million cash consideration and inject additional USD 30 million capital into EMAS CHIYODA Subsea.
Shogo Shibuya, President and CEO of Chiyoda, said, “The formalization of this joint venture with Ezra is a significant step towards strengthening Chiyoda’s offshore upstream portfolio. With our combined expertise and resources, EMAS CHIYODA Subsea is well-positioned to provide services throughout the life cycle of any offshore oil and gas project. This transaction also demonstrates our commitment towards the future of the subsea business.”
Lionel Lee, Group CEO and Managing Director of Ezra, said, “With the completion of this joint venture, we are able to increase our scope of services and provide more value to our clients and partners. We are delighted by the strong show of support from Chiyoda and our stakeholders in this partnership, which is a testament to our capacity to conquer the current headwinds in the sector. With the benefits of an expanded operational expertise and networks, we are confident that this joint venture will better equip us to navigate the changing industry landscape.”