Ezra Holdings forms subsea JV with Chiyoda CorporationNews // August 28, 2015
Ezra Holdings Limited and Chiyoda Corporation have signed a binding Memorandum of Understanding (MOU) that will see Chiyoda invest in Ezra’s Subsea Services business, EMAS AMC, to form a new 50/50 joint venture (JV), EMAS Chiyoda Subsea. Chiyoda is a leading front end engineering design (FEED) and engineering, procurement and construction (EPC) company in the oil and gas industry.
In a statement, Ezra Holdings said: "Through this partnership, EMAS Chiyoda Subsea will be able to undertake larger and more complex offshore EPCI projects." The companies aid they would benefit from a combination of capabilities and resources such as project management, backed by technologically advanced assets; the provision of a global network of engineering centres; supply chain management capability and global vendor networks; wider global client networks; research and development capabilities in engineering and construction technologies; and greater financial strength.
Chiyoda’s involvement will begin early in the concept development phase of offshore projects together with EMAS Chiyoda Subsea, where the ability to influence cost is the greatest. EMAS CHIYODA Subsea will then use its fleet and operational expertise to deliver these solutions offshore.
Shogo Shibuya, President and CEO of Chiyoda, said: “This is a very important milestone for us. It has been Chiyoda’s corporate strategy to strengthen the offshore upstream portfolio as Chiyoda’s next core business.
“With the establishment of EMAS Chiyoda Subsea, we are in a position to provide comprehensive services to our clients, from early phase concept study to EPCI, throughout the lifecycle of any offshore oil and gas project. Chiyoda is excited about this new opportunity and glad that we can jointly work with an excellent subsea player,
Lionel Lee, Group CEO and Managing Director of Ezra, said: "This JV will allow us to realise our vision of being a trusted partner and leader in the subsea construction business. It will enable us to undertake large complex EPCI projects, as well as full field developments, which combine onshore and offshore facilities. Chiyoda will be able
to lend tremendous support in many areas of our business operations.”
The closing of the joint venture transaction is subject to the approval of Ezra’s shareholders and the satisfaction of other customary closing conditions. Assuming these conditions are met, the transaction is expected to close by the end of 2015.