One of the key attractions of the transaction, according to Subsea 7’s CEO Jean Cahuzac, is the connections it brings to the upstream market in the Middle East.
The transfer of assets is said to include people, local presence and client relationships; and a long-term agreement (LTA) and three current projects in Saudi Arabia, inconsortium with L&T Hydrocarbon Engineering (L&T).
Under the LTA, Subsea 7 would be invited to bid for future projects off Saudi Arabia.
Subsea 7 and Chiyoda, one of the plan of reorganization sponsors and a former shareholder of ECS, have opened discussions on collaborating in engineering and technology initiatives.
The transaction, valued at under $100 million, includes the Ingleside spoolbase and around 850 former ECS personnel in Houston, Singapore, and Saudi Arabia.
Subsea 7 has secured a multi-year bareboat charter for the former ECS-owned pipelay vesselLewek Champion in the Middle East, and a short-term charter for the pipelay vessel Lewek Constellation to complete work in hand elsewhere.
The company has also as a result acquired an approximate $850-million order backlog, with five exceeding $50 million in value:
- Hasbah, in consortium with Laursen & Toubro (L&T), offshore Saudi Arabia
- Four decks, in consortium with L&T, offshore Saudi Arabia
- 17 cranes, in consortium with L&T, offshore Saudi Arabia
- OCTP project offshore Ghana
- TVEX in the US Gulf of Mexico.