Subsea 7 to Discontinue of SapuraAcergy Joint Venture

  • Oct 17, 2017
  • Gulf Oil & Gas

Subsea 7 S.A. announced an agreement with Sapura Energy Berhad to discontinue the SapuraAcergy joint venture. SapuraAcergy’s heavy-lift and pipelay vessel, Sapura 3000, has been sold to a subsidiary of Sapura Energy Berhad.

The decision by Subsea 7 and Sapura Energy Berhad to discontinue the joint venture reflects the evolution of both companies’ long-term strategic priorities. Subsea 7 remains committed to the Asia Pacific region, with offices located in Malaysia, Australia, Indonesia and Singapore.

Additional information:

- SapuraAcergy comprises two jointly owned entities, SapuraAcergy Assets Pte Ltd and SapuraAcergy Sdn Bhd.

- All SapuraAcergy’s projects have been completed and its entities will be liquidated in due course.

- SapuraAcergy is an equity accounted joint venture in which Subsea 7 holds a 50% interest.

- Subsea 7’s share of net income of SapuraAcergy is reported within Subsea 7’s SURF and Conventional Business Unit and is included in Adjusted EBITDA.

- In 2016 Subsea 7’s share of net income from SapuraAcergy was USD 6 million and at 31 December 2016 the carrying amount of the investment was USD 129 million.

- As a result of the discontinuation of the joint venture and the sale of Sapura 3000, Subsea 7 expects to receive approximately USD 100 million in cash dividends, and recognise a loss of approximately USD 10 million in the third quarter.