Schlumberger, Aker Solutions and Subsea 7 will form a joint venture that will comprise the subsea businesses of Schlumberger and Aker Solutions, with Subsea 7 purchasing ten per cent of the joint venture. Together, they hope to unlock reserves, reduce time to first oil, lower development costs while delivering on decarbonisation objectives.
Subsea 7 lays down USD 306.5 million for its participation in the joint venture. The 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.
The transaction is subject to regulatory approvals as well as other customary closing conditions, and is expected to close during the second half 2023. Following completion of the transaction, Schlumberger will own sevevnty per cent of the joint venture, with Aker Solutions and Subsea 7 owning twenty and ten per cent, respectively.
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The Board of Directors of the joint venture will consist of three representatives from Schlumberger, two from Aker Solutions and one from Subsea 7. The new joint venture will form part of Subsea Integration Alliance, currently an unincorporated alliance between Schlumberger and Subsea 7. The alliance will be extended by ten years from the transaction completion date.
Aker Solutions will receive USD 306.5 million from Schlumberger, which will be settled in the form of shares in Schlumberger. Subsea 7 purchase of its ten per cent interest will be settled in cash, fifty per cent will be settled upon closing of the transaction and the remainder will be settled, with interest, by June 30, 2024. Aker Solutions will receive USD 87.5 million in proceeds from a vendor note from the joint venture. Of this, at least fifty per cent will be paid, with interest, one year after the transaction closes and the remainder within two years.
‘Offshore market activity is increasing’
Olivier Le Peuch, CEO of Schlumberger: ‘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.’
‘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,’ adds Kjetel Digre, CEO of Aker Solutions.
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