Service & Supply | Deals - Joint Ventures | Oilfield Services | Offshore

Schlumberger, Aker Solutions Ink Subsea-Focused JV

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   |    Wednesday,August 31,2022

Schlumberger, Aker Solutions and Subsea 7 announced an agreement to form a joint venture focused on subsea optimization.

The proposed joint venture will combine Schlumberger’s and Aker Solutions’ subsea businesses, which include deep reservoir domain and engineering design expertise, an extensive field-proven subsea production and processing technology portfolio, world-class manufacturing scale and capabilities, and a comprehensive suite of life-of-field solutions for customers all over the world.

Subsea 7 will be an equity partner in the new joint venture.

Schlumberger Chief Executive Officer Olivier Le Peuch commented: “As investment in the offshore market—particularly in deepwater—continues to increase, our customers will benefit from enhanced services that leverage digital and technological innovation to drive improved subsea asset performance while increasing energy efficiency and reducing CO2 emissions. We look forward to collaborating with both Aker Solutions and our subsea integration partner Subsea 7 on this new venture.”

Øyvind Eriksen, President and Chief Executive Officer of Aker ASA, added: “Aker Solutions, Schlumberger and Subsea 7 are complementary businesses, both in terms of products and services, as well as customers and geographical presence. Furthermore, Schlumberger shares our commitment to innovation, such as deploying digital solutions and decarbonization technologies."

Upon closing of the proposed transaction, the existing Subsea Integration Alliance (SIA) between Schlumberger and Subsea 7, will be amended so that the new joint venture will assume Schlumberger’s role in the Alliance, which will be renewed for a ten-year term.

Subsea 7 Chief Executive Officer John Evans said: “We are excited to build on our highly successful alliance with Schlumberger and partnership with Aker Solutions. This new joint venture is a critical step as we collaborate on integrated subsea projects that drive maximum value for our customers."

In addition to contributing its subsea business to the joint venture, at closing Schlumberger will issue to Aker Solutions shares of Schlumberger common stock valued at USD 306.5 million in a private placement. Concurrently, Subsea 7 will purchase its 10% interest in exchange for USD 306.5 million in cash to Aker Solutions. The joint venture also will issue a promissory note to Aker Solutions for USD 87.5 million. At closing of the joint venture, Schlumberger will own 70%, with Aker Solutions owning 20% and Subsea 7 owning 10%.

The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the second half of 2023.