Singapore-listed Ezion receives letter of intent worth up to $80.4m over three years

An oil service rig. Rig owner and offshore services company Ezion Holdings said on Monday it has received a letter of intent to provide a service rig to an oil major for use in South-east Asia. -- FILE PHOTO : EZION HOLDINGS  
An oil service rig. Rig owner and offshore services company Ezion Holdings said on Monday it has received a letter of intent to provide a service rig to an oil major for use in South-east Asia. -- FILE PHOTO : EZION HOLDINGS  

Rig owner and offshore services company Ezion Holdings said on Monday it has received a letter of intent to provide a service rig to an oil major for use in Southeast Asia.

The letter of intent has a contract value of up to about US$65 million (S$80.4 million) over a three-year period, Ezion said. The rig is expected to be deployed and working in Southeast Asian waters by the third quarter of 2015.

Ezion is currently forming a joint venture company to order and own an additional service rig in conjunction with this project, which will be funded by internal resources and bank loans, the company said.

This project is not expected to have a material impact on the group's earnings per share or net tangible assets per share for the current financial year.