Seatrium inks deal to sell AmFELS Yard for US$50M

Singapore’s Seatrium has entered into a binding agreement with an affiliate of Karpowership to sell its AmFELS Yard, Brownsville, Texas, for S$65M (US$50M). The deal is being executed by Seatrium’s subsidiary, Seatrium AmFELS and Karpower Valley.

Seatrium said the deal would allow the company “to enhance capital and operational efficiencies, while unlocking value from one of its surplus facilities.”

Despite the divestment of the Texas shipyard, Seatrium chief executive, Chris Ong, said, “The US market remains important to us. We will continue to leverage our global footprint and integrated ‘One Seatrium Delivery Model’ to deliver world-class solutions to our US- based and global customers in the offshore and energy sectors.”

Once the sale is complete, Seatrium plans to support the US with its engineering innovation and technology capabilities, through its operations in Houston, Texas, and Vicksburg, Mississippi.

The Singapore marine engineering and technology company said the all-cash consideration was arrived at after arm’s length negotiations with Karpowership. S$50M (US$39M) of the transaction will be deferred and paid one year after closing.

The book value of the divested assets as of 30 June 2025, sold on an “as is, where is” basis, is approximately S$39M (US$30M), according to Seatrium.

The completion of the sale is subject to customary closing conditions, including the transfer of the lease to the new owner by the Port of Brownsville.

Seatrium said the group remains committed to completing all ongoing projects at AmFELS Yard by the end of 2025, “ensuring a smooth and responsible transition for its customers and partners.”

The shipyard recently delivered Charybdis, the first wind turbine installation vessel built in the United States, to Dominion Energy.