Keppel Corp. Ltd. reported Thursday that its wholly owned subsidiary Keppel Offshore & Marine (Keppel O&M) has entered into a shareholders’ agreement with Russian national oil company, Rosneft Oil Company (Rosneft), and Norwegian drilling equipment firm, MHWirth, to set up a Singapore incorporated Joint Venture Company (JVCO). The shareholding of Keppel O&M, Rosneft and MHWirth in the JVCO will be 45 percent, 45 percent and 10 percent respectively.
The JVCO will establish a wholly-owned Design and Engineering Centre (DEC) in the Russian Federation, and its principal business activities will be in relation to the design and engineering of mobile offshore drilling units (MODUs) for shallow waters to cater to the region. Both the JVCO and the DEC will, in the conduct of its business and activities, adhere to the prevailing U.S. and European Union sanctions imposed on the Russian offshore oil and gas sector.
The initial projects undertaken by the DEC will be from Rosneft for design and engineering work related to shallow water platforms. It will also look to take on work from other Russian and international customers.
The abovementioned transaction will not have any material impact on the net tangible assets and earnings per share of Keppel Corp. Ltd. for the financial year ending Dec. 31, 2016.
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