Singapore’s Ezra Holdings and Chiyoda Corp of Japan have finalised the formation of their 50:50 joint venture EMAS Chiyoda Subsea, which will begin operations on Friday.
The JV aims to be a “global leader and facilitate involvement in larger ground-breaking subsea construction projects”, a statement said today.
The partners signed a memorandum of understanding (MOU) in August 2015 in which Chiyoda agreed to buy half of Ezra’s existing subsea services unit to form the new JV. The deal at that time was valued at around $1.25bn.
Chiyoda paid $180m for a 50% stake in Ezra’s UK-registered subsidiary EMAS-AMC Holdings on September 29 last year as part of a binding share sale and subscription agreement.
“The formalisation of this joint venture with Ezra is a significant step towards strengthening Chiyoda’s offshore upstream portfolio,” Shogo Shibuya, president and CEO of Chiyoda, said in a release. “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, added: “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.”