Singapore-listed offshore contractor, Ezra, and EMAS Offshore Production Service, a wholly-owned subsidiary of EMAS Offshore, have accepted a non-binding letter of intent (LOI) to sell at least their current combined 78,4 per cent in PV Keez to a global infrastructure investment firm.
PV Keez is a single purpose company that owns the FPSO Lewek EMAS, which is chartered to Premier Oil Vietnam Offshore BV (POVO) as operator of the Chim Sao field offshore southern Vietnam.
Ezra and EOPS are expected to receive an aggregate consideration of a combination of cash and sellers credit, upon successful closure of the transaction.
Lionel Lee, Group CEO and managing director of Ezra, said: “This transaction is fully in line with the Group’s strategy to move away from ownership of FPSO assets and will allow us to streamline our resources. Furthermore, it will allow us to move towards capitalising on the capabilities and experience we have harnessed from FPSO conversions and to build a franchise based on providing higher value-added services.”
Captain Adarash Kumar, EMAS Offshore’s CEO, added: “This transaction will enable us to strengthen our financial position and refocus the company’s business in the offshore support sector during the current challenging times in the oil and gas sector.”
Ezra said it expects the transaction to be completed by no later than the end of June 2016.