Another subsea tie-up, although not quite on the scale of Schlumberger/Cameron also was done recently, with Ezra Holdings subsidiary EMAS AMC and Japan’s Chiyoda Corp. teaming up to create EMAS Chiyoda Subsea, a 50:50 joint venture (JV).
The companies said the rationale behind the deal is that EMAS Chiyoda Subsea will be able to undertake larger and more complex offshore engineering, procurement, construction and installation (EPCI) projects through a combination of capabilities and resources.
Chiyoda, which is an important provider of onshore engineering to the likes of Shell and Exxon Mobil, said its involvement will begin early in the concept development phase of offshore projects together with EMAS Chiyoda Subsea, where the ability to influence cost is the greatest.
EMAS Chiyoda Subsea will then use its technologically advanced fleet and operational expertise to deliver these solutions offshore.
Chiyoda wants to boost its profile in its home market where a position in the subsea market is seen as a sign of importance. There is little in the way of offshore developments in home waters now, but the coming development of methane hydrate deposits off Japan could be an area of expansion.
Chiyoda already is a majority shareholder in Xodus Subsea, a JV with Xodus Engineering and Saipem so how the new tie-up will impact on this triumvirate is yet to be seen.
The new EMAS Chiyoda JV will benefit from project management capability backed by technologically advanced assets; a global network of engineering centres; supply chain management capability and global vendor networks; wider global client networks; R&D capabilities in engineering and construction technologies; and financial strength, the company said.
Under the EMAS branding, Ezra operates in more than 16 locations across six continents spanning Africa, the Americas, Asia, Australia and Europe.
Lionel Lee, group CEO and managing director of Ezra, said, “This JV will allow us to realise our vision of being a trusted partner and leader in the subsea construction business. It will enable us to undertake large complex EPCI projects as well as full field developments, which combine onshore and offshore facilities. Chiyoda will be able to lend tremendous support in many areas of our business operations.”
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