EMAS Chiyoda Subsea Commences Business Ops

Ezra Holdings Limited (Ezra) and Chiyoda Corporation (Chiyoda) announced Friday that Chiyoda has completed its investment into Ezra’s Subsea Services business, EMAS AMC, to form EMAS CHIYODA Subsea – a 50:50 Joint Venture.

About Ezra and Chiyoda

Founded in 1992, Ezra is a leading contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry. Under the EMAS branding, Ezra operates in more than 16 locations across six continents spanning Africa, the Americas, Asia, Australia and Europe.

Chiyoda is a world leading Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) company in the oil and gas industry, with a history of almost 70 years of project experiences worldwide.

Background

On Aug. 27, 2015, Ezra and Chiyoda signed a binding Memorandum of Understanding (MOU) for Chiyoda to invest in EMAS AMC. This was followed by the entry into a binding share sale and subscription agreement on Sept. 29, 2015. Ezra and Chiyoda have completed the transaction and launched the Joint Venture today. EMAS CHIYODA Subsea will commence operations with effect from April 1, 2016.

Value Proposition

By leveraging on Ezra’s and Chiyoda’s combined capabilities and global experience, EMAS CHIYODA Subsea will be able to offer better client support and service offerings, thereby strengthening its position as a global leader in the offshore upstream oil and gas industry, especially in the Engineering, Procurement, Construction and Installation (EPCI) segment. The expanded capabilities and diverse project execution track record will provide the crucial platform for the Joint Venture to participate in and successfully execute larger ground-breaking subsea construction projects to expand its historical business portfolio.

Furthermore, Chiyoda’s engineering and project management capabilities as well as wide network of global clients, including Japanese clients, will allow EMAS CHIYODA Subsea to extend its current geographical reach, and derive synergies across the subsea value chain, including integration from concept phase to execution for EPCI projects.

In the midst of prevailing market conditions, the successful completion of the Joint Venture signals commitment from both Ezra and Chiyoda to participate in the long-term prospects of the subsea services business.

Shogo Shibuya, president and CEO of Chiyoda, said, “The formalization of this joint venture with Ezra 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. This transaction also demonstrates our commitment towards the future of the subsea business.”

Lionel Lee, Group CEO and managing director of Ezra, said, “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. 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 networks, we are confident that this Joint Venture will better equip us to navigate the changing industry landscape.”

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