The newly-enlarged EMS Group, formed as a result of EMS Energy Limited’s acquisition of the Koastal Group, has signed a binding Letter of Intent (LOI) worth $570 million for the supply, testing and commissioning of up to six sets of Major Equipment Package for rigs, worth $95 million per set, totalling to $570 million.
EMS said the LOI was signed with a shipyard based in Asia.
“Given the weak oil price, having this LOI translate into a firm contract will be a major milestone win for us.
“With the consolidation of Koastal in the Enlarged Group, we are strengthening our business model – one that stays resilient amid a low oil price regime,” said Ting Teck Jin , Executive Chairman and Chief Executive Officer, EMS Energy Limited.
According to EMS, the group is expected to enter into formal contracts with the buyer before December 31, 2015, subject to the outcome of exclusive negotiations between the two parties. The delivery schedule for the first set of equipment is expected to be before June 30, 2017.