Seatrium divests AmFELS yard in South Texas

Seatrium has announced the divestment of its AmFELS Yard located at Brownsville, Texas, for a consideration of S$65 million (US$50.6 million).

The asset sale is being executed through Seatrium’s subsidiary, Seatrium AmFELS, Inc., which has entered into a binding agreement with Karpower Valley LLC, a related party of Karpowership.

Commenting on the sale, Chris Ong, Chief Executive Officer of Seatrium, said: “We have a strong and longstanding relationship with Karpowership, and are pleased to entrust the yard to a partner with whom we will continue to deepen our collaboration. Notwithstanding the divestment, the US market remains important to us. We will continue to leverage our global footprint and integrated One Seatrium Delivery Model to deliver world-class solutions to our US-based and global customers in the offshore and energy sectors.”

Following the asset divestment, Seatrium will transition its strategic presence in the US to focus on engineering innovation and technology capabilities, through its technology centers and offices located in Houston, Texas, and service center in Vicksburg, Mississippi, to support the evolving needs of its customers.

The completion of the divestment is subject to customary closing conditions, including the transfer of the lease to the new owner by the Port of Brownsville.

Seatrium says that it remains committed to completing all ongoing projects at AmFELS Yard by the end of 2025 to ensure a responsible transition for its customers and partners.