EOC forms JV to execute $1bn Chim Sao project in Vietnam

EOC Limited, an Asian-based provider of offshore oil and gas support services, has inked a joint venture (JV) agreement with three partners to co-own the floating production, storage, and offloading vessel (FPSO) that is slated to serve the Chim Sao oilfield project in Vietnam.

EOC will team up with Ezra Holdings Limited (Ezra), PetroVietnam Transportation Corporation (PVTrans) and KSI Production Pte Ltd (KSI) to execute the high-profile project contracted with Premier Oil Vietnam Offshore B.V.. Under the terms of the Shareholders’ Agreement, EOC, Ezra and KSI have agreed to inject an initial amount of US$1 million in the share capital of JV Company of which EOC shall subscribe for such number of shares in the capital of the JV Company, at an issue price of US$1 per share, representing 43.3% of the Initial Equity Amount (being US$433,333), the remainder of which will be held by the other initial shareholders.

By 31 December 2010, Ezra, EOC, KSI and PV Trans agree to subscribe for such number of new shares at an issue price of US$1 per share in cash, in accordance with the terms and subject to the conditions of the Shareholders’ Agreement so as to increase the aggregate investment amount to US$150 million, of which a total of up to US$65 million shall be contributed by EOC representing 43.3%, subject to a minimum contribution amount of US$40 million or representing 26.67%, of the ultimate investment amount. The final contribution amount will be dependent on the status of regulatory approvals required by certain JV partners.