By the OGJ Online Staff
HOUSTON, Sept. 17 -- Clough Engineering Ltd., Perth, and Mermaid Marine Australia Ltd. have signed a memorandum of understanding to form a joint venture for shallow water pipeline installation.
Shareholders must approve the proposal. Deloitte Corporate Finance will release a guiding report for shareholders soon, said Clough.
The proposed joint venture intends to specialize in projects off the north coast of Western Australia and the Northern Territory, but will consider other projects on a case-by-case basis.
Clough will provide management and engineering resources and transfer its current Australian shallow water business to the JV, while Mermaid will provide management resources and preferred access to its pipe stringing and tow facilities. Mermaid will also transfer its current business opportunities to the JV.
The JV will be able to both bottom-tow pipe from shore and lay pipe at sea.
Mermaid will acquire a 50% interest in Clough's specialist lay barge Challenge by issuing 6.5 million shares to Clough in return for the $5 million (Aus.) stake.