JAPANESE oilfield services contracting firm Chiyoda Corporation has sealed the acquisition of a 50 per cent stake in Ezra Holdings' subsea business unit Emas AMC.
The acquisition, pegged at US$180 million under a binding memorandum of understanding signed between Chiyoda and Ezra, saw the former forking out US$150 million in cash consideration paid to the latter in addition to pumping in US$30 million into the newly formed 50:50 joint venture (JV), Emas Chiyoda Subsea.
Emas Chiyoda Subsea will commence operations with effect from April 1, 2016. The new JV, which is registered as a private business entity in the United Kingdom, will leverage Ezra and Chiyoda's combined capabilities and global track records.
Shogo Shibuya, Chiyoda's president and chief executive, said: "The formalisation of the joint venture 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."
Lionel Lee, Ezra's group chief executive and managing director, said: "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 network, we are confident that the joint venture will better equip us to navigate the changing industry landscape."
The new joint venture, EMAS Chiyoda Subsea, is registered as a private business entity in the United Kingdom, not the United States. We apologise for the error.