Ezra consortium clinches US$1.6b contract from Saudi Aramco

SINGAPORE - Mainboard-listed Ezra Holdings, a contractor and provider of offshore services, announced that Emas CHiyoda Subsea1, a 50:50 joint venture company owned by Ezra and Chiyoda Corporation, has in partnership with Larsen & Toubro Hydrocarbon Engineering (LTHE) been awarded a contract by Saudi Arabian oil giant, Saudi Aramco.

The contract, valued at over US$1.6 billion (S$2.17 billion), will see Emas Chiyoda Subsea and LTHE provide integrated engineering, procurement, construction and installation services for the development of the second phase of the Hasbah Offshore Gas field, Ezra said in a statement on Friday (July 22).

Emas Chiyoda Subsea's scope takes up close to 40 per cent of the contract value.

Situated off the coast of Saudi Arabia, the project is scheduled to be completed over a period of three and half years and will serve Saudi Aramco's strategy to supply clean natural gas through the Fadhili Gas Plant to meet Saudi Arabia's growing domestic energy demand.

This is the first major contract awarded by the oil giant to the Emas Chiyoda Subsea-LTHE consortium. The consortium has entered into a six year long term agreement, with exercisable options to extend for another six years, with Saudi Aramco in June last year to execute offshore projects with the oil company.

The onshore engineering and fabrication component of the project has commenced and the offshore execution phase is expected to commence in the fourth quarter of 2017.