Subsea 7 and Sapura Energy have agreed to end their Asia Pacific focused SapuraAcergy joint venture (JV), with the JV's heavy-lift and pipelay vessel, Sapura 3000, sold to a subsidiary of Sapura Energy.
The JV was set up in 2006, with SapuraCrest Petroleum, to take over the build and operation of Sapura 3000, a then new heavy lift and pipelay vessel designed for the Asia Pacific region.
Subsea 7 says the decision to end the JV "reflects the evolution of both companies' long-term strategic priorities."
SapuraAcergy comprises two jointly owned entities, SapuraAcergy Assets and SapuraAcergy, both 50% owned by Subsea 7 and SapuraCrest Petroleum.
In 2016, Subsea 7's share of net income from SapuraAcergy was US$ 6 million and at 31 December 2016 the carrying amount of the investment was $129 million.
As a result of the discontinuation of the joint venture and the sale of Sapura 3000, Subsea 7 expects to receive $100 million in cash dividends, and recognize a loss of about $10 million in Q3.
All SapuraAcergy's projects have been completed and its entities will be liquidated in due course.
Subsea 7 says it remains committed to the Asia Pacific region, with offices in Malaysia, Australia, Indonesia and Singapore.