EMAS Offshore Switches Gears from Leased FPSO to EPC Business

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EMAS Offshore changes tack in its floating production business by targeting engineering, procurement and construction contracts instead of focusing on leasing deals.

EMAS Offshore Ltd. (EOL), the newly consolidated subsidiary of Singapore-based Ezra Holdings Ltd., is switching gears on its floating production business from chasing after multi-year leases to engineering, procurement and construction contracts, Group Chief Executive Lionel Lee said at the full-year results briefing held over the weekend.

EOL is the enlarged subsidiary in which Ezra holds over 75 percent interest, comprising the then Oslo-listed EMAS Offshore Construction and Production and offshore support services provider, EMAS Marine.

Lionel Lee, CEO of Ezra Holdings
Lionel Lee, <br> CEO of Ezra Holdings Source: Ezra Holdings

Changed Priorities for Floating Production Business

In December 2012, EOC Ltd. (EOCL) entered into an asset swap with its Malaysian affiliate, Perisai Petroleum Teknologi Bhd, as part of a move to divest its stake in the Lewek Arunothai floating production, storage and offloading (FPSO) vessel, subsequently renamed Perisai Kamelia. The FPSO has been under a three-plus-three year term charter with Hess Exploration and Production Malaysia B.V. in the North Malaya basin off Peninsular Malaysia since November 2013.

When the consolidation of EOC and EMAS Marine was mooted in July, EOL was the 49 percent owner of Perisai Kamelia FPSO and had a 42 percent stake in the Lewek Emas FPSO, which is under contract with UK independent Premier Oil Vietnam.


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