Pipeline specialist ShawCor has finalised a deal to sell one of its Brazilian divisions held through a Socotherm joint venture for net proceeds of US $28.5 million to Tenaris.
The Socotherm division, which operates a pipe-coating plant at the Confab welded pipe mill in Pindamonhangaba, Brazil already is operated by Tenaris.
ShawCor said the sale – for which a further payment of approximately $1.2 million is also due to be received later this year – is part of its strategy to concentrate on pipe coating investments which it both manages and controls.
It did add that it will continue to provide deepwater pipe coating services to the Latin American market through its Thermotite do Brasil business unit, a Bredero Shaw facility which is currently completing the coating of subsea flowlines and risers for the Sapinhoa North development operated by Petrobras.
At the same time ShawCor is anticipating a $30 million impairment “...relating primarily to goodwill and intangible assets that arose from the 2010 purchase of the company’s joint venture partners in Thermotite do Brasil Ltd,” ShawCor said. This impairment is anticipated because of expected changes in development plans for the pre-salt Santos basin by Petrobras.
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