Ezra unit achieves first oil in Vietnam with Lewek EMAS

The FPSO commences on US$1b charter to Premier Oil for up to 12 years.

Ezra Holdings Limited (Ezra), a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry has announced that Lewek EMAS, the floating production, storage and offloading (“FPSO”) vessel for Vietnam’s high-profile Chim Sao oil project, has successfully achieved first oil on 10 October 2011.

The vessel is the latest and largest FPSO vessel co-owned by EOC, the 46.5% owned associate company and production division (EMAS Production) of the Group. This milestone marks the commencement of the vessel’s US$1 billion charter contract with Premier Oil Vietnam Offshore B.V. (“Premier”). EOC expects revenue from this contract to contribute positively to its stream of recurrent earnings from 1Q FY2012, according to an EZra report.

The contract, which was one of a handful of FPSO contracts awarded globally in 2009, comprises of a primary term of six years, with six renewable one-year extension options. Ezra, EOC, KSI Production Pte Ltd and PetroVietnam Transportation Corporation previously formed a joint venture company, PV Keez Pte. Ltd., (“PV Keez”) to serve as the main operating company to supply Lewek EMAS and related services in connection with the contract.

Mr Lionel Lee, Ezra’s Managing Director, said: “Working with Premier is a proud moment for the Ezra Group as we had the opportunity to involve our key divisions to support the Chim Sao project. The Group was able to provide an integrated solution from the provision of the FPSO through EMAS Production and the fabrication of modules at TRIYARDS in Vietnam, to the installation and commissioning of the vessel. This demonstrates how Ezra aims to serve clients globally across the entire life-of-field.”

Lewek EMAS, which underwent conversion in Singapore’s Keppel Shipyard from a 168,000 deadweight tonne Suezmax oil tanker, has a storage capacity of about 660,000 barrels of oil and can produce up to 50,000 barrels of oil per day. EOC has a 41.7% interest in Lewek EMAS while Ezra has an interest in the vessel through its holdings of 36.7% in the share capital and 28,000,000 redeemable cumulative preference shares in PV Keez. The day-to-day operations and maintenance, during the contract period, is being undertaken by PVTrans EMAS Company Limited (a newly-incorporated Vietnamese Joint Venture company owned by PetroVietnam Transportation Corporation and EOC).

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