Japan's Chiyoda and Singapore-based Ezra's EPCIC service provider EMAS AMC officially launched a 50-50 joint venture called EMAS Chiyoda Subsea, which will begin operations on 1 April 2016.
The companies signed a binding memorandum of understanding (MoU) in August 2015 when it was agreed that Chiyoda would invest in EMAS AMC.
According to the MoU, the transaction implies an aggregate deal value for EMAS Chiyoda Subsea of approximately US$1.25 billion.
Furthermore, the companies agreed that Chiyoda will pay Ezra a $150 million cash consideration and inject additional $30 million capital into EMAS Chiyoda Subsea.
"The formalization of this joint venture with Ezra is a significant step towards strengthening Chiyoda’s offshore upstream portfolio," said Shogo Shibuya, president and CEO, Chiyoda.
Lionel Lee, Group CEO and managing director, Ezra, said through the new joint venture EMAS is able to increase its scope of services. "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," he said.