Ezra eyes Arctic region to further develop its deepwater subsea services arm
Ezra Holdings Limited, Asia‟s leading integrated support and marine services provider in the offshore oil & gas (O&G) sector, will soon be able to operate in the Arctic region, following its recent purchase of all the equipment, engines and thrusters from the Ice Maiden project at „distressed‟ prices. This shipset – which allows vessels to operate under harsh and demanding conditions, even in glacier-filled areas – will further develop the Group‟s range of deepwater subsea capabilities.
The Ice Maiden – a high-profile project begun in early 2007 – was tied to a Shell contract for the Gannet and Shearwater oilfields, to execute deepwater subsea work in the North Sea. The project was later abandoned in 2008.
Ezra‟s Managing Director, Mr Lionel Lee, said: “The scarce supply of ice-class flexlay construction accommodation vessels in the industry and their ability to operate even in the harshest of environments mean they command a considerable premium in terms of charter rates. We are confident that entering the Arctic region will not only boost our margins, but also raise our profile as an integrated solutions provider in this technologically demanding arena.”
Ezra‟s decision to tap the Arctic region for growth is backed by statistics that indicate immense potential for the O&G market in the Arctic Circle. According to a news release1 by the United States Geological Survey (USGS), the area north of the Arctic Circle isestimated to hold about 22% of the world‟s undiscovered, technically recoverable O&G resources. Thus, this move will open up brand-new opportunities for Ezra in a large market where there is signifcantly less competition.
The Group‟s engineering and fabrication yard in Vietnam will design and build an ice-class flexlay vessel using the acquired shipset. With the costs locked in at a highly competitive rate, Ezra will enjoy a sharp cost advantage over its peers. The ice-class vessel will have a reel lay system and a fully mechanised Pipeline End Termination Handling system.
“The addition of ice-class capabilities will place us in a higher playing field and underpin our leading position in Asia as the only provider of integrated solutions across the offshore O&G value chain,” noted Mr Lee.
Ezra has been steadily putting in place the building blocks that will help it drive the Group‟s future earnings growth. Having identified the deepwater subsea segment as an area of high growth, it set up its deepwater subsea services division in July and recently awarded a US$23 million contract to build five remotely operated vehicles which will be deployed alongside its three incoming subsea-capable vessels.
