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Schlumberger, Aker Solutions and Subsea 7 create JV

Published by , Editorial Assistant
World Pipelines,


Schlumberger, Aker Solutions and Subsea 7 have announced an agreement to form a Joint Venture (JV) to drive innovation and efficiency in subsea production by helping customers unlock reserves and reduce cycle time. The agreement will bring together a portfolio of innovative technologies such as subsea gas compression, all-electric subsea production systems and other electrification capabilities that help customers meet their decarbonisation goals.

Schlumberger, Aker Solutions and Subsea 7 create JV

The proposed JV 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 JV.

“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,” said Schlumberger CEO, Olivier Le Peuch. “We look forward to collaborating with both Aker Solutions and our subsea integration partner Subsea 7 on this new venture.”

“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,” said Øyvind Eriksen, President and CEO of Aker ASA.

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

“We are excited to build on our highly successful alliance with Schlumberger and partnership with Aker Solutions. This new JV is a critical step as we collaborate on integrated subsea projects that drive maximum value for our customers,” said Subsea 7 CEO, John Evans.

In addition to contributing its subsea business to the JV, at closing Schlumberger will issue to Aker Solutions shares of Schlumberger common stock valued at US$306.5 million in a private placement. Concurrently, Subsea 7 will purchase its 10% interest in exchange for US$306.5 million in cash to Aker Solutions. The JV also will issue a promissory note to Aker Solutions for US$87.5 million. At closing of the JV, 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.

Read the article online at: https://www.worldpipelines.com/business-news/16092022/schlumberger-aker-solutions-and-subsea-7-create-jv/

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