Andrews Kurth Represents COOEC in Strategic Fabrication Joint Venture with Fluor

(Beijing, China)—Andrews Kurth is pleased to announce representation of Offshore Oil Engineering Co., Ltd. (COOEC), a subsidiary of China National Offshore Oil Corporation (CNOOC), in negotiations to form a strategic fabrication joint venture with Fluor; the agreement on the joint venture was announced on August 20, 2015.

The new joint venture company is called COOEC-Fluor Heavy Industries Co., Ltd., which will own, operate and manage the Zhuhai Fabrication Yard in China’s Guangdong province. The Zhuhai Fabrication Yard, located near Hong Kong in the Zhuhai Gaolan Port Economic Development Zone, is a world-class, state-of-the-art facility, which is already establishing a reputation for serving fabrication needs in the Asia-Pacific region. Across an area of 2.07 square kilometers, the yard can accommodate fabrication modules weighing more than 50,000 tons. It has three slipways and four workshops, and is currently constructing one of the four platforms for Thailand’s state-owned PTT Public Company’s Zawtika 1B gasfield development offshore Myanmar.

COOEC-Fluor Heavy Industries Co., Ltd. provides Fluor with the capability to produce large modules for onshore projects and gives the company access to the long-term strategic capacity to deliver offshore fabrication services for clients globally.

As part of the joint venture, Fluor will make two stages of investments: an initial cash investment of US$350 million after all regulatory approvals are received, which is targeted for late 2015, and an approximately US$139 million investment in the third quarter of 2016. Fluor will hold 49 percent ownership in the joint venture, with COOEC holding 51 percent.

The joint venture will reap synergies from the corresponding strengths of both its parent companies. While Fluor brings a solid track record of completing large and sophisticated projects, COOEC is renowned for its cost-competitive proficiency and a solid customer base in Asia-Pacific and globally.

The Andrews Kurth team from the Beijing office was led by Tim Unger and Jerry Li with the involvement of Ben Swift and Dora Luo, and the assistance of Jane Jiang and Yanchen Wang. Eric R. Markus and Eric G. Osborne handled compliance provisions negotiations.

As released by the former Andrews Kurth Kenyon LLP