Ezion inks US$298m deal with Kim Seng

2 service rigs are under way.

According to an SGX release, the Board of Directors of Ezion Holdings Limited announced that the Company has entered into a joint venture (“JV”) with Kim Seng Holdings Pte Ltd and the JV has secured contracts with an approximate value of up to USD 298 million to provide 2 Service Rigs over a 7 year period to support the oil & gas activities of a national oil major in Central America.

The Service Rigs which will be deployed in the Bay of Campeche are expected to be working in the 1st Quarter of 2013.

The JV will acquire and own 2 Service Rigs to meet the requirements of the contracts upon the finalization of the definitive sale and purchase agreements.

The above mentioned acquisitions will be funded through internal resources as well as bank borrowings.

The above mentioned charters are not expected to have a material impact on the Group’s earnings per share or net tangible assets per share for the financial year ending 31st December 2012.

None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the abovementioned transactions, save for their shareholdings in the Company.