Sinagpore-based Kim Heng Offshore & Marine Holdings has signed a Memorandum of Understanding (MOU) with the Taiwan-based Hung Hua Construction (HHC) to collaborate on the offshore wind sector.
Kim Heng said in a statement: "Our wholly owned subsidiary Kim Heng Marine & Oilfield Pte Ltd (KHMO) had signed a Memorandum of Understanding (MOU) with Hung Hua Construction Co. (HHC) and Thaitan Drilling to establish a long term business cooperation."
HHC is a marine construction company participating in dredging and maritime construction projects. For more than 30 years, HHC has been engaging in dredging of waterways, navigation channels, constructing of dykes, foundation piles, breakwaters, projects of large reclamation and port construction.
Thaitan is a company specialising in the provision of leading Horizontal Directional Drilling (HDD) services.
The MOU is in relation to the operations between KHMO, HHC and Thaitan relating to HDD projects and marine construction projects.
As per the MOU, KHMO and Thaitan will, as a consortium or joint venture, provide design, engineering, drilling equipment and project technical support to HHC’s HDD projects onshore and offshore. KHMO and Thaitan will support HHC technically and operationally as a preferred subcontractor for its future projects in Taiwan.
HHC will also tender for future HDD projects and marine construction projects in Taiwan on behalf of KHMO and Thaitan. HHC, KHMO and Thaitan will explore forming a joint venture through a subsidiary registered in Taiwan for future HDD projects and marine construction projects.
KHMO, HHC and Thaitan will work towards signing a formal contractual agreement and charter party agreements.
The MOU will remain in force for a period of one year, and renewable as mutually agreed by the parties. The MOU is not expected to have a material financial impact on the Group’s net tangible assets per share and earnings per share for the financial year ending 31 December 2019.
The MOU is subject to, amongst other things, the execution of the definitive agreements in relation to the above and there is no certainty or assurance that the definitive agreements will be entered into.
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