NYK Enters Subsea Industry
Japanese shipping company Nippon Yusen Kaisha (NYK) has agreed with Ezra Holdings (Ezra) and Chiyoda Corporation (Chiyoda) to acquire a 25 percent share of a UK-based joint venture company EMAS Chiyoda Subsea (ECS).
ECS is a global player in the engineering, procurement, construction and installation (EPCI) of subsea facilities needed in offshore oil and gas field development.
Its shareholding structure will now be changed to Ezra 40 percent, Chiyoda 35 percent and NYK 25 percent.
NYK said it has been expanding its business in offshore oil and gas exploration/development as a part of its ‘More than Shipping 2018’ medium-term management plan. In addition, the company said that the entry into the subsea EPCI segment is to enable it “to further extend its service range in the offshore oil and gas value chain”.
“I am delighted that we can offer another range of service in offshore segment by joining into ECS. With reliable partners, I believe this opportunity would create strong alliance and I am excited that we would be able to contribute to worldwide offshore development, including that in our home country,” Tadaaki Naito, President Corporate Officer of NYK said.
“After the establishment of EMAS CHIYODA Subsea in March 2016, today, I am excited that Ezra, Chiyoda and NYK reached the agreement for NYK to join into ECS,” Shogo Shibuya, President and CEO of Chiyoda Corporation commented.
In March this year, ECS was established as a 50:50 joint venture between Ezra and Chiyoda.
The joint venture transaction is expected to close by the third quarter of 2016, according to Chiyoda.