Schlumberger, Aker Solutions and Subsea 7 today have announced an agreement to form a joint venture which will help customers unlock reserves, reduce time to first oil and lower development costs while simultaneously delivering on their decarbonisation objectives.
The proposed joint venture will comprise the subsea businesses of Schlumberger and Aker Solutions, with Subsea 7 purchasing 10% of the joint venture for US$306.5mn. This combination brings together 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 to customers all over the world.
The transaction is subject to regulatory approvals as well as other customary closing conditions, and is expected to close during the second half of 2023.
The board of directors of the joint venture will consist of three representatives from Schlumberger, two from Aker Solutions and one from Subsea 7. As part of the transaction, the new joint venture will form part of Subsea Integration Alliance, currently an unincorporated alliance between Schlumberger and Subsea 7.
Olivier Le Peuch, Chief Executive Officer of Schlumberger, said, “This joint venture will bring together world-class businesses that are uniquely positioned to provide subsea technologies to help our customers improve recovery and reduce overall subsea development costs. Customers will benefit from enhanced services that leverage digital and technology innovation to drive improved performance while increasing energy efficiency and reducing CO2 emissions.”
Kjetel Digre, Chief Executive Officer of Aker Solution, commented, “By combining our strong and complimentary competence and technologies, this compelling combination will deliver an industry step change that will benefit our customers, employees and significantly increase shareholder value. The offshore market activity is increasing, and this joint venture will drive enhanced offerings both in terms of subsea production economics and low-carbon solutions.”
John Evans, Chief Executive Officer of Subsea 7, added, “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 the integrated subsea projects that drive maximum value for our customers.”