UK-based offshore operator Bibby Offshore has filed a case in the Texas Southern District Court against Emas Chiyoda Subsea, the subsea entity controlled by Singapore’s Ezra Holdings.
Bibby Offshore says it is owed around $14.7m from $18.1m worth of contracts performed in Trinidad in 2016. It has requested a demand for arbitration after it said Emas Chiyoda withdrew an agreement to mediate which was scheduled for January 12.
A spokesperson for Emas Chiyoda Subsea told Splash: “Emas Chiyoda Subsea have investigated the facts surrounding the case and believe the case has no legal merit. ECS have also engaged outside legal counsel to challenge it in court.”
Bibby Offshore said they will “not be providing any comment at this stage” when contacted by Splash.
Emas Chiyoda Subsea is 40% owned by Ezra Holdings while Japan’s Chiyoda Corporation holds a 35% stake and NYK holds a 25% stake.
Chiyoda Corporation says today that it is downgrading its overall financial forecasts, with Emas Chiyoda set to deliver much lower profitability than forecast. It anticipates risks of up to JPY 38 billion ($333.6m) stemming from the subsea jv.
NYK has announced today that having reassessed the future recoverable value of its stock holdings and loans to Emas Chiyoda, it has recorded an extraordinary loss of around JPY13.0 billion ($114.1m) in its third quarter results.