NYK dives deep into offshore market

The Japanese ocean carrier will acquire a 25 percent stake in EMAS Chiyoda Subsea, a construction firm specializing in offshore and subsea oil and gas facilities, from Singapore’s Ezra Holdings and Japan’s Chiyoda Corporation.    Nippon Yusen Kaisha (NYK) is diving into the offshore oil and gas sector by acquiring a minority stake in subsea construction firm EMAS Chiyoda Subsea Limited (ECS), according to a statement from the company.
   NYK’s purchase of a 25 percent stake in ECS, which is jointly owned by Ezra Holdings of Singapore and Japan’s Chiyoda Corporation, makes it the first Japanese shipping company to enter subsea industry.
   ECS is a global player in the engineering, procurement, construction, and installation of subsea facilities and components in offshore oil and gas field development. Following completion of the deal, the Ezra will own an approximate 40 percent share of ECS and Chiyoda a 35 percent share.
   NYK said the purchase is part of the company’s “More than Shipping 2018” medium-term management plan, which emphasizes market differentiation as a way to reduce risk exposure.
   “NYK currently offers seismic, drilling, production, and shuttle transportation services, and entry into the subsea EPCI segment will enable the company to further extend its service range in the offshore oil and gas value chain,” it said.
   Japan’s “Basic Plan on Ocean Policy,” legislation approved by the Cabinet of Japan in April 2013, lays out “a vision of Japan as an oceanic state and encourages the promotion, creation, and development of maritime industries and marine resources, in addition to human resources having maritime technological capabilities,” said NYK.
   “We believe that we can further support the government initiatives through this new partnership with ECS,” the company added. “NYK will strive to enhance its capabilities in offshore resource development, including those in the exclusive economic zone of our home country.”